Service Company Example

A service company is a company that carries out specialized activities in various branches, among these we can list:

Quartermaster companies
Industrial maintenance services
Banks
Transport services
Accounting or administrative legal offices.
Insurers etc.

Example of a service company:

A furniture factory needs to make the corresponding payments to its employees, pay contributions, and social security contributions.

Faced with the impossibility of carrying out all these acts by themselves, they decided to make use of the services of a public accounting firm and contracted a plan in a bank.

Both the accounting firm and the bank are service providers; since the public accountants firm is in charge of managing expenses, payments and contributions, and the The bank makes deposits to each employee, as well as managing payments to the social and pensions.

For the contracting company, they generate an expense, but in the end, they are activities that in the medium and long term reduce the expenses that may have been incurred.