Tertiary sector: most-used accounting accounts

It produces no material goods: it provides services to people and businesses. This is the broadest sector, so its accounts vary a lot. A shop lives on its merchandise inventory; a hotel or a school, on income collected in advance; a transport company, on its vehicles. What nearly all share is the rent of the premises, customer advances and service income.

Activities included

Trade (wholesale and retail)
Transport and logistics
Tourism and hospitality
Education
Health care
Banking and finance
Insurance
Legal, accounting and consulting services
Public administration
Communications and media
Personal services (hairdressing, beauty, repairs)
Leisure and entertainment

Characteristic accounts of this sector

These 41 accounts of the chart best distinguish this sector. Tap one to open its full page: definition, when it is debited and credited, and common mistakes. Account pages are currently in Spanish and show the English and French names.

41 accounts

1Assets 14

2Liabilities 8

4Income 5

5Costs 5

6Expenses 9

Typical entry in this sector

Tuition collected in advance for 2,400.

Account	Debit	Credit
Cash at bank	2,400.00
Deferred revenue		2,400.00
Totals	2,400.00	2,400.00

When the month’s service is provided, the earned part is recognized: 400.

Account	Debit	Credit
Deferred revenue	400.00
Service revenue		400.00
Totals	400.00	400.00

Accounts this chart does not include

This sector usually also needs accounts that are created as sub-accounts or in a specialized chart:

Loans to customers and customer deposits. Banks and cooperatives use their own chart for these (IFRS 9).
Technical reserves and premiums. Insurers use a specialized chart (IFRS 17).
Public-sector accounts. Public administration uses its own standards (IPSAS).

See the 41 accounts common to all sectors

Almost every business, whatever its sector, uses these accounts: cash and banks, customers and suppliers, taxes, basic payroll, capital and equity, and general expenses.