Chart of Accounts: Service Business

What's Included

A complete, ready-to-use Chart of Accounts (COA) for Philippine service businesses, structured according to generally accepted accounting principles (GAAP) and compatible with BIR reporting requirements. Covers:

• Assets: Cash, accounts receivable, prepaid expenses, equipment, accumulated depreciation
• Liabilities: Accounts payable, accrued liabilities, VAT payable, withholding tax payable, SSS/PhilHealth/Pag-IBIG payable, loans payable
• Equity: Owner's equity, retained earnings, drawings
• Revenue: Service income (VATable), service income (VAT-exempt), interest income
• Expenses: Salaries and wages, SSS/PhilHealth/Pag-IBIG (employer share), rent, utilities, professional fees, communications, depreciation, bank charges, and others

Account Numbering System

The COA uses a 4-digit numbering scheme:

Range	Category
1000–1999	Assets
2000–2999	Liabilities
3000–3999	Equity
4000–4999	Revenue
5000–5999	Cost of Services
6000–6999	Operating Expenses
7000–7999	Other Income
8000–8999	Other Expenses

Who Should Use This

This COA is designed for:

• Freelancers (graphic designers, writers, developers, consultants)
• Professional service firms (law offices, accounting practices, marketing agencies)
• IT services and BPO companies
• Any sole proprietorship or corporation where revenue comes from service fees rather than product sales

How to Customize

1. Add sub-accounts under each main account as needed (e.g., separate accounts per client or project).
2. If you have both product and service revenue, add inventory-related accounts from the retail COA.
3. Remove accounts that don't apply to your business.
4. Ensure your accounting software uses the same account codes for seamless reporting.

BIR Relevance

The BIR does not mandate a specific COA format, but your books of account must reflect accurate revenue and expense categorization to support your income tax returns, VAT returns, and alphalist submissions. This COA is structured to map directly to BIR form line items.