Service Company Definition – What is a Service Company?

Accounting Glossary 

Service company definition including break down of areas in the definition. Analyzing the definition of key term often provides more insight about concepts. The term service company can be defined as: Organization that provides services instead of tangible assets. Service company can be contrasted with a company that sell inventory, the primary function of a service company being non-tangible. Understanding whether a company is a service company or is not a service company is important because inventory adds different complexities to a business.