What is a Service Business?

A service business is one that performs tasks or activities to its customers. The service is not a physical product. Customers exchange money for the benefit they receive from the service. Service businesses are generally the easiest form of business to start due to lower overhead. Examples of service businesses are:

  1. Beauty salons
  2. Medical care
  3. Consulting
  4. Accounting
  5. Cleaning
  6. Delivery
  7. Pet sitting
  8. Childcare

To learn more about how the financial statements for service businesses work, watch this video:

Video explaining Income Statements for Service Businesses.

Caroline Grimm

Caroline Grimm is an accounting educator and a small business enthusiast. She holds Masters and Bachelor degrees in Business Administration. She is the author of 13 books and the creator of Accounting How To YouTube channel and blog. For more information visit: https://accountinghowto.com/about/

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