For businesses that don’t sell a physical product, income is usually from services rendered. A service is an intangible product, and income derived from selling your services must be recorded in the accounting ledger. A journal entry in an accounting journal is a business transaction. A double-entry journal entry takes the form of a ledger with two columns; a debit column, and a credit column. It’s called double-entry because every entry into one column requires a corresponding entry into the other column.
Example of Services Rendered in Double-Entry Method
When Does Services Rendered Count as Income?
Formatting the Services Rendered Journal Entry
Since 2006, Vanessa has written for a variety of website development agencies and private clients on topics related to growth for new and underperforming businesses. Her work can be found in print publications and on websites such as Palo Alto Software and business accelerators and Chambers of Commerce in her state.