Activity

IT service companies that offer IT support to their customers are termed as IT service companies. Generally, IT service companies do not thrive without any tie up with other organizations. IT service companies generally benefit by getting compensated by other organizations who require IT support but can’t afford to set up their own IT group. Such companies offer basic computer support and help in using various software programs to operate from a remote location.

There are many service companies, which are providing IT support through email or telephonic services. They have developed a network of contacts which are available to provide assistance to their customers who call them. A typical customer contacting an IT company for help is seeking help with some particular problem such as setting up a backup system in an organization, upgrading a specific program, or adding more computers to the network. The main IT service companies use several tools to measure the demand in the market and keep track of the competition. Service company accounting is done for specific periods of time and reports are prepared on specific reports.

If a customer calls in with a specific problem relating to a specific product such as an accounting firm may suggest selling off those goods which are still being manufactured. Accounting firm would then sell those goods to a manufacturer who would sell it again to the end user who would again put it to use in production. Every activity in an organization is linked to its accounts and records; hence, it is very important to understand how to go about maintaining these accounts accurately and effectively.

Some of the activities include debit and credit card debits, manufacturing export debits, export deposits, sales, and service companies use a debit or credit card to facilitate transactions. When a customer pays his bills online via a debit card he owes a particular amount to the service company and when his account becomes overdue he has the option to either pay his account late or contact his bank to find on how his account can be reclaimed. This debit card activity is called journal entry.

finance and methods to record and process the daily transactions made by clients. finance of the common accounting cycle includes debit and credit card debits, general ledger accounts, sales, purchases, cash flow and payments to other customers. General Ledger Accounts consists of the day-to-day transaction accounts that deal with general activities of the business like purchase of goods/services, inventory, supplies, payment and payments. finance relate to the financing of trades through credit or debit cards and to make regular purchases from suppliers.

A typical service company implements four kinds of accounting cycles for facilitating cash management. These are Cash Collectible, Salesoline, Inventories and Other and finally General Ledger. A cash collectible, as the name suggests, is a book item received by the customer and then immediately credited to the merchant’s account. Salesoline is the term given to an item that is sold to another person and then later purchased by the merchant. An item that is credited to a merchant’s account remains outstanding until it is paid for by the customer.

An invoice, as the name suggests, is a formal communication from a customer to the seller. It contains the name of the customer, the name of the seller, the quantity and value of the goods sold, including shipping charges and applicable taxes. General Ledger is the term used for the everyday transaction accounts. The basic principles governing the recording and retrieval of debits and credits remain the same irrespective of whether the transaction is conducted on credit or debit. A debit entry reflects an obligation of the customer to pay for goods sold and a corresponding debit value reflects an allowance for credit of the seller for the same goods sold.

Credit and debit entries are processed to reflect an actual credit or debit transaction. A service company implements various techniques to ensure accuracy in the recording of debits and credits. It also uses internal control measures and quality control processes to achieve an effective and reliable performance. Good record keeping helps the management to make timely judgments about operating procedures, pricing, and marketing programs. A company has to ensure that its accounting system, both closed and open, assists in decision making as well as providing accurate information relating to accounting trends, costs, and performance.