1. Service Firm Accounts

2. Overview O What is a Service Firm? O Why do Service Firms keep accounts? O What type of accounts do Service Firms use?

3. What is a Service Firm? O Service Firms are businesses that provide their experience or skills in return for a fee O Unlike other firms, they do not produce a product O Service Firms provide approximately 70% of jobs in Ireland

4. Can you think of any examples of service firms?

5. Transport

6. Banking

7. Medical

8. Dental

9. I.T.

10. Insurance

11. Plumber/Electrician/Painter

12. Hairdresser

13. Why do Service Firms keep accounts? O They are required to keep accounts by the Revenue Commissioners O To find out if the business made a profit or a loss O To find out the value of the business O Accounts are needed if applying for a grant or a loan

14. What type of accounts do Service Firms use? O Analysed Cash Book – to record all cash received and paid by the business O Operating Statement – similar to an income and expenditure account O Income = debit side of analysed cash book O Expenditure = credit side of analysed cash book O Balance Sheet – statement of items owned by the business on a certain date, along with the corresponding finance

15. Review O What is a Service Firm? O Why do Service Firms keep accounts? O What type of accounts do Service Firms use?