When creating this paper, the final goal was to show the specifics of accounting of a service company by using an example of Leo Nautika, a limited liability company that deals with the repair and maintenance of ships and boats. The first part of the paper analyzes the specifics of accounting and tax measurement and recognition through the regulatory framework. The Accounting Act, Financial Reporting Standards, Income Tax Act and VAT Act are covered. The second part includes basic data about the company Leo Nautika and internal documentation of the same company with the aim of studying the specifics of the accounting of a service company on a practical example. Within the basic data, there is information about the size of the company, the financial statements that are required to be drawn up, the rates of profit tax and VAT used in the calculation and further details about the company itself. Under the internal documentation the following are presented: incoming invoices for costs, procurement of spare parts and acquisition of fixed assets, outgoing invoices for service provided and sale of marine engines, journal entry for each presented business change, balance sheet, profit and loss account, and tax returns on profit and VAT. Finally, based on all the information presented in this paper and the studied literature, the conclusion was formed that the accounting of service activities is specific and differs from the accounting of other types of activities.