Service Business Accounting Templates
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- April 14, 2019 Updated
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In business, there are three different common business classification you can find. Those are service, merchandising and manufacturing businesses. In financial and accounting terms, it leads to different method on how to record and report its transaction.
Service business is a business that provide intangible products. It doesn’t have any physical stocks/inventories. Consultant, law firms, cleaning services companies fall to this category. They provide services where they need to complete at the agreed time.
Merchandising business is a business that provide products, mostly physical products, where they keep stocks in their warehouses. Stocks are bought from other stores or manufacturers. Any stores you can find either offline or online fall to this category.
The third category is manufacturing business. It produces or assemblies goods for their inventories. Usually, they hold brands. Any branded bags, shoes, clothes fall to this type of business. But, there are many businesses that can be classify to one of category above strictly since they provide mixed products or services. For example, hair saloon is a service business, but it sells shampoos, conditioners, etc where it requires warehouse or inventory system to keep their stocks. It is a mixed between a service and merchandising business. Another example is a food truck business, it produces food to eat but also sell beverage from other companies. This business will fall into merchandising and manufacturing business.
But, you don’t have to be confused on how to classify them, especially when you try to prepare a report. Just pick the closest type of business category, record any transactions and prepare your financial reports. Investors are only care on how profitable is your business and not on how you classify your business correctly. At least you know, there are three different business categories you will find if you are looking for financial tools or software to organize your financial transactions.
Service Business Accounting Templates will help you recording your transaction in Accounting way. Why accounting way, because it applies Double-Entry bookkeeping method where any recorded transactions in each journals must have pairs in Debit and Credit columns. In accounting terms, debit and credit terms have different meaning with debit and credit in bank accounts. To use this spreadsheet properly, you need basic knowledge of accounting.
This accounting system for a service company spreadsheet suit any type of businesses that don’t require CoGS as part of expenses calculation. Typically, a service company :
- doesn’t have physical product form. For examples, consultant provides advises while singer provides good voices.
- has no standard prices. They are decided by quality, good and famous singer will be more expensive than unknown singer.
- doesn’t require warehouse or physical place to put stocks. Value is usually more on their talents.
Based on above characters, here are some businesses that can be classified as service companies :
- Architect and Management Consulting Firm
- Car rental
- Seminar equipment rental
- Language courses
- Artist Management
- Laundry services
- Car wash services
This spreadsheet is suitable for :
- Students who want to practice their accounting skills. They can find accounting cases and map it into this template.
- Accounting Managers and Staffs who want to record and track their company financial activities by using Microsoft Excel where the data can be processed and transferred easily between Excel and other Office Suites (Word, Power Point, Access)
- Small Business Owners who want to track their company financial situation using any type of devices without worrying about their incompatibilities.
There are plenty of accounting models adopted by many companies to generate their accounting reports. This spreadsheet represents a general model of accounting report that you can customize to meet your company’s report model. You may add more journals, modify report formulas, add more financial forms etc. Since this spreadsheet is created in Microsoft Excel, you won’t have any difficulties on modifying it as long as you have basic knowledge or Excel and Accounting.
Since service business do not require inventory no Cost of Sales or Cost of Goods Sold will appear in your financial report. Record your income and expenses in one General Journal. Then, adjust unbalance transactions at the end of particular period (month or year) in Adjusting Journal before preparing your financial reports.
These templates will automate your journal entries into General Ledger and financial reports automatically. You don’t have to write your transactions twice, by dates and accounts, like what you might do if you did it manually. You just select particular accounts in General Ledger and see its summary within one table.
In report worksheets, you can customize accounts that you want to see in printed report. There are four different reports you can generate, Profit and Loss or Income Statement, Balance Sheet, Cash Flow (Direct and Indirect) and Equity reports.
You can access all worksheets from Home Panel inside the spreadsheet. Those buttons are arranged by flow of data entry. It should easy you on switching to other worksheet sequentially and quickly.
Although formulas are in place to automate your journal entries, you still need to put all transactions in correct places and debit/credit columns. This spreadsheet is intended to speed up your transaction recording and reporting procedures. It should help you who already use Microsoft Excel to record their financial transactions. Also, it should be an upgrade. If you are using a trial balance method to balance all of your transactions, you can move your transactions to particular journals and see how it calculated in this spreadsheet automatically since this spreadsheet doesn’t use trial balance as a physical worksheet but more as a background calculator.
You can use this Accounting for Service Business spreadsheet to record daily transaction within one accounting period. There are options to see financial summary in total or by months. This spreadsheet is not free, but you can do anything with the paid version. All worksheets and formulas are unprotected where you can modify to suit your own needs.
How To Use This Template
To use this spreadsheet, you may need basic knowledge of accounting. It is a must because it applies double entry bookkeeping method where any entries should be paired. Although all data entries will be processed automatically, inputting transaction data in incorrect places could yield incorrect calculation that could make balance sheet become unbalance and give you incorrect financial reports.
1. Home Panel
You can go to particular worksheets from this home panel. All buttons are arranged like a flow chart that should remind you on the next task to do.
2. Integrated data entry and report
This spreadsheet is equipped with formulas to yield financial reports that should be useful to analyze your company’s performance.
3. Simple Journal Entry System
There are one general journal and one adjusting journal that will help you recording all daily transaction activities. You just need to entry data in correct debit and credit columns and make them balance (remember that this accounting spreadsheet is using a double entry bookkeeping method).
4. Customized Balance Sheet Report
You can select company chart of accounts that you want to see in Balance Sheet report. Respective values will be calculated from journals and shown automatically.
You can design your own balance sheet report as well. There is one spare worksheet to accommodate manual report. You can do copy and paste procedures from generated report and modify it from there.
5. Customized Profit and Loss Report
Similar to balance sheet, you can set which company chart of accounts you want to see in Profit and Loss report.
6. Customized Cash Flow Report
You can choose which method you want to use on presenting Cash Flow report. There are two methods, Direct and Indirect Method. Set the accounts you want to see in both methods and respective values will be shown.
7. Automatic General Ledger
You don’t have to type anything in this General Ledger worksheet. Respective accounts from journals will be grouped automatically. You can monitor debit and credit of respective accounts by selecting its Chart of Accounts number and see its summary.
8. Automatic Depreciation Calculator
There is a formula to calculate depreciation of your company assets automatically. You can put all of your assets that have different purchasing dates and usage period within one table. It should ease you on getting the values to be put on respective journals and reports. It uses a common Straight Line method to depreciate all of your assets.
This is a useful feature for companies who provide rentals as their products, like car rentals or exhibition rentals.
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