7 Examples of Service Company Transactions and Their Proofs, Important to Record!

Although both involve selling, service companies are clearly different from goods-based companies. That’s why the types of transactions also differ, even though there are some similarities.

As the name suggests, a service company is a business that provides services to its customers without producing physical products that can be seen or touched.

The services offered by service companies can span various sectors, such as consulting, healthcare, transportation, and education. This type of company focuses on the experience and expertise provided to customers.

Keep reading this article to learn more about the examples and documentation of transactions in service companies.

Characteristics of Service Companies

To better understand service companies, here are some of their main characteristics:

• Intangibility. The services provided do not have a physical form. Customers cannot see or touch the services, but they can experience and benefit from them.

  
  

• Variability. Unlike goods, which can have consistent quality, the quality of services may vary depending on the time, location, and individual providing the service. This makes each service experience unique for the customer.

  
  

• Customer Involvement. When using a service, customers often play an active role in determining the final outcome. For example, in makeup services, customers can provide input on their desired final look.

  
  

• Inability to Be Stored. Because services are intangible, they cannot be stored for later use. However, certain service outcomes can be retained, though not in physical form. For instance, the results of a consultation can stay with the customer for a long time, even though they are not tangible.

Read Also: Customer Satisfaction: Factors and Indicators You Need to Know

Examples of Service Company Transactions

Business transactions generally involve money as a medium of exchange and payment, carried out based on mutual agreement. Below are several examples of transactions commonly conducted by service companies:

1. Purchase Transactions

This involves the purchase of goods by a service company. These purchases typically include items that support the delivery of services.

For example, a travel service company may purchase travel vehicles, vehicle accessories for passenger comfort, and items to equip an office or shuttle space, such as desks and chairs, air conditioners or fans, and computers.

Purchases can be made through direct payment or on credit, depending on the agreement with the seller.

2. Sales Transactions

Aside from purchases, there are also sales transactions, often referred to as revenue. Since these are service-based businesses, what is sold are services that generate income and are recorded as revenue.

Every service sale or income received must be recorded in the company’s bookkeeping, whether the revenue is received in cash or on credit.

3. Loan or Debt Transactions

In this case, the service company borrows money from another party for various purposes—most commonly to increase capital. This is referred to as company debt.

Such transactions are made with the promise to repay the borrowed amount within a specified period, including interest. As a result, the total repayment is greater than the amount borrowed.

4. Accounts Receivable Transactions

When offering services, the company may allow customers to pay later or on credit. This is known as an accounts receivable transaction.

These transactions must be properly recorded, including the due date and the agreed-upon payment terms.

5. Expense Payment Transactions

As the name implies, this refers to payments made for the company’s ongoing expenses. These may include installment payments for equipment and recurring bills.

For example, a salon business may need to pay for electricity, water, and WiFi monthly, as well as installments for the premises and salon tools.

6. Investment Transactions

These transactions involve placing funds into assets for a certain period with the goal of gaining profits or increasing value over time.

If part of the company’s capital comes from investors, it’s important to return the investment according to the agreed timeline. If profit sharing is promised, it should be done transparently and with detailed reporting.

Service companies may also invest in property, stocks, bonds, or other financial instruments to increase future profits.

7. Barter Transactions

These transactions occur when services are exchanged without using money as a payment tool. Services can be exchanged for goods or other services of equal value.

Barter is one of the oldest forms of trade and has seen a resurgence among business owners. One example is the endorsement system.

Today, many service providers engage in barter-based collaborations. For instance, a Makeup Artist (MUA) may offer makeup services to an influencer in exchange for exposure via Instagram Story posts.

Also Read: 15 Promising and Profitable Service Business Ideas in 2025

Proof of Service Transactions

Although service transactions are carried out in the form of services, there still needs to be physical documentation that can be stored by the company or business owner. Here is a list of common types:

• Pay Slip – Proof of salary payment to employees.

• Giro Slip – A written instruction to transfer funds from the customer's bank account to the recipient's account, as stated on the slip.

• Cheque – A written order for payment from a bank account to the bearer or the named recipient.

• Cash Outflow Receipt – A document recording cash payments, such as employee salaries or purchases.

• Cash Inflow Receipt – A document recording cash received.

• Receipt (Kwitansi) – A document acknowledging receipt of money, signed by the receiver and given to the payer.

• Memorandum – Internal documentation used to record transactions that occur within the company.

• Cash Sales Invoice (Nota Kontan) – Issued by the seller to the buyer during cash transactions; the original is given to the buyer while the seller keeps a copy.

• Asset Transfer Document – Used when transferring assets from one branch to another.

• Bank Statement – Issued by the bank to the account holder, listing all cash inflow and outflow.

• Bank Deposit Slip – A document from the bank that records a deposit made by the company.

That wraps up the explanation of service company transaction examples and their forms. If you need help managing your business transactions, just use the Labamu app.

Labamu offers a variety of helpful features, such as Reports that provide complete and easy-to-understand sales summaries, Billing with options for deposits and installments, and a Debt Book to ensure clear records of payables and receivables — and much more.

Download Labamu now on Google Play or the App Store and experience its best features for yourself!