Service Charge Accounts

Service charge accounts are specialized bank accounts used by businesses to manage fees collected for specific services provided. Think of them as separate buckets where a business keeps money earned from services like cleaning, maintenance, or consulting. By maintaining a dedicated service charge account, a business ensures transparency and proper tracking of revenue generated from these services. It also helps in financial reporting and compliance. These accounts are part of the company's financial records and can be used to pay related expenses or be reinvested into the business activity associated with those services.