Business services refer to a group of activities that help organizations but do not result in a physical commodity. They can be categorized by their purpose and expertise, such as accounting, marketing, legal and IT support.
They also include administrative and clerical services that can be performed in person or online from anywhere with a reliable internet connection. Examples of these include balancing accounts, preparing tax returns and managing company information systems.
The main difference between services and products is that service providers are not able to produce or store goods for future use. Instead, a service provider aims to fulfill standardized demand from different customers by providing the product at the time they need it.
Business services can be grouped into three categories based on their nature and industry: business-to-business, social, and personal services. In the business-to-business category, trade organizations like wholesalers or manufacturers perform B2B transactions with other businesses. Similarly, in the social category, businesses that provide services to consumers are classified as social service companies. These companies work to meet social needs, ranging from basic health and education to cultural enrichment. They can provide these services for a fixed fee or for a fee per hour. These businesses can also sell their services to other companies and governments. They have a high demand in the economy because they can help people live a better life. Generally, they also offer benefits and incentives to their employees. These bonuses can range from vacation days to paid sick leave.