Bookkeeping Contract Template

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A bookkeeping contract is a legally binding agreement between an individual or company and the person providing bookkeeping services. It clearly outlines all parties' responsibilities and protects everyone’s legal rights. Complete this legal template on Loio and get a complete PDF document suitable for your needs.
BOOKKEEPING (ACCOUNTING) SERVICES AGREEMENT

This Bookkeeping (Accounting) Services Agreement (the "Agreement") is entered into on   (the "Effective Date") by and between 

 , an individual having their usual place of living at   (the "Accountant), and 

 , an individual having their usual place of living at   (the "Client"), collectively referred to as the "Parties" and each individually as the "Party".

WHEREAS the Client wishes to engage the Accountant to provide accounting and bookkeeping services to the Client in accordance with the terms and conditions of this Agreement;

WHEREAS the Accountant is ready to provide such services to the Client under the terms and conditions set forth in this Agreement.

NOW, THEREFORE, in consideration of the mutual promises and obligations set forth herein and upon other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties have agreed as follows:

SUBJECT OF THE AGREEMENT. This Agreement sets forth the terms and conditions on which the Accountant undertakes to provide the Client with the following accounting and bookkeeping services (the "Services"):

The Accountant will provide the Services with due care, skill, and diligence, following generally accepted accounting principles and complying with all applicable laws.

The Client undertakes to provide the Accountant with all necessary information, documents, and access to their accounting records and financial information reasonably required for the Services under this Agreement.

If the Client wishes to change the scope of the Services provided by the Accountant under this Agreement, the Parties shall negotiate in good faith to amend this Agreement to reflect such changes.

PAYMENT TERMS. The Client agrees to pay the Accountant for the Services provided under this Agreement in accordance with the following conditions: 

Hourly rate. The Client shall pay the Accountant for the actual number of hours worked by the Accountant at the hourly rate of  .

Invoicing. The Accountant sends invoices to the Client on a weekly basis, as agreed between the Parties. Each invoice shall contain a detailed breakdown of the hours worked by the Accountant's personnel and the tasks performed.

Payment. The payment for each invoice is due within   days from the date of the invoice. Payment shall be made by cash unless otherwise agreed in writing by both Parties.

Late payment. If the Client fails to pay any amount due under this Agreement within   days after the due date, the Accountant may charge a penalty of  % of the outstanding amount due or the maximum rate permitted by law, whichever is less, on the unpaid amount until it is paid in full.

TERM OF THE AGREEMENT. This Agreement shall commence on the Effective Date and shall continue until   unless terminated earlier in accordance with the terms of this Agreement.

Either Party may terminate this Agreement upon  -day written notice to the other Party.

In addition, either Party may terminate this Agreement immediately upon written notice to the other Party if the other Party becomes insolvent or files for bankruptcy.

Upon termination of this Agreement, the Accountant shall immediately return to the Client all property and confidential information in their possession or under their control, as well as provide the Client with all results of work and materials received by the Accountant connected with the provision of the Services under this Agreement. The Client shall pay the Accountant for all the Services successfully completed by the Accountant through the date of termination.

REPRESENTATIONS AND WARRANTIES. The Client represents and warrants that:

  1. The Client has the right and authority to enter into this Agreement and fulfill their obligations under this Agreement;

  2. The Client will provide the Accountant with the accurate and complete information necessary for the Accountant to perform the Services under this Agreement;

  3. The Client will furnish the Accountant with access to all necessary financial and accounting documentation and information;

  4. The Client will comply with all applicable laws connected with the performance of obligations under this Agreement;

  5. The Client will immediately notify the Accountant of any changes in their business or financial condition that may affect the provision of the Services under this Agreement.

The Accountant represents and warrants that:

  1. The Accountant has the right and authority to enter into this Agreement and to perform the obligations under this Agreement;

  2. The Accountant will provide the Services under this Agreement professionally and efficiently, in accordance with generally accepted accounting principles;

  3. The Accountant will keep confidential all information provided by the Client and connected with the provision of the Services under this Agreement;

  4. The Accountant will comply with all applicable laws connected with performing the obligations under this Agreement.

Except as expressly provided in this Agreement, the Parties make no other representations or warranties of any kind, expressed or implied, including but not limited to warranties of merchantability or fitness for a particular purpose.

LIABILITY AND INDEMNIFICATION. The Accountant shall be liable for all damages, including but not limited to incidental or consequential damages, arising out of or connected with the provision of the Services under this Agreement. 

The maximum liability of the Accountant under this Agreement shall be limited to the amount of the fee paid by the Client to the Accountant for the specific Services that gave rise to the claim.

The provisions of this Section shall survive the termination of this Agreement for any reason.

RELATIONSHIP OF THE PARTIES. The relationship of the Parties hereunder shall be governed by the following provisions:

• Independent contractor status. The Parties acknowledge and agree that the Accountant is an independent contractor and not an employee, agent, or representative of the Client. The Accountant has no authority to bind the Client to any agreement or to act on the Client's behalf unless the Client has expressly authorized it in writing.

• No partnership or joint venture. The Parties acknowledge and agree that this Agreement does not create a partnership, joint venture, agency, or any other similar relationship between the Parties. Neither Party shall hold itself out as a partner, joint venture, agent, or representative of the other Party.

• Compliance with the law. The Accountant shall be solely responsible for complying with all applicable laws, rules, and regulations in performing their obligations under this Agreement.

• Guarantee of results. The Parties acknowledge and agree that the Accountant guarantees sufficient results and/or consequences from the provision of the Services under this Agreement.

• Exclusivity. The Parties acknowledge and agree that, according to the terms of this Agreement Accountant is prohibited from providing similar services to other clients. 

• No conflict of interest. The Accountant undertakes to immediately notify the Client of any actual or potential conflicts of interest that may arise in connection with the provision of the Services under this Agreement.

• Absence of third-party beneficiaries. The Parties acknowledge and agree that this Agreement is for the benefit of them and their respective successors and assigns, and no other person or entity shall have any rights or remedies under this Agreement.

CONFIDENTIALITY

Both Parties may disclose confidential and proprietary information to each other while providing the accounting and bookkeeping Services under this Agreement. The "confidential information" means any non-public, confidential, or proprietary information in written, oral, or electronic form disclosed by one Party (the "Disclosing Party") to the other Party (the "Receiving Party") in connection with this Agreement. The confidential information may include but is not limited to financial documents, business plans, customer lists, trade secrets, and any other information designated as confidential.

The Parties agree that the Receiving Party undertakes the following obligations:

  1. The Receiving Party agrees to keep all confidential information received from the Disclosing Party in strict confidence and use it solely to perform the obligations under this Agreement.

  2. The Receiving Party shall not disclose, copy, or use the confidential information for any purpose other than as expressly provided for in this Agreement, except with the prior written consent of the Disclosing Party.

  3. The Receiving Party shall take all reasonable steps to maintain the confidentiality and security of the confidential information, exercising at least the same degree of care as it would exercise with confidential information of a similar nature, but not less than a reasonable standard of care.

The confidentiality obligations do not apply to any information that:

  1. Was already known to the Receiving Party at the time of disclosure, as evidenced by written documents;

  2. Has become publicly known through no fault of the Receiving Party;

  3. Lawfully received by the Receiving Party from a third party without any obligations of confidentiality;

  4. Independently developed by the Receiving Party without reference to the Confidential Information.

Upon termination or expiration of this Agreement, the Receiving Party shall immediately return or destroy all tangible and electronic copies of the confidential information in their possession or control unless otherwise agreed upon in writing by the Parties.

This Confidentiality clause shall survive the termination or expiration of this Agreement.

FORCE MAJEURE. Neither Party shall be liable for any failure to perform or delay in performing the obligations under this Agreement if such failure or delay is caused by events of force majeure, including but not limited to acts of God, war, terrorism, strikes, lockouts, labor disputes, pandemics, epidemics, governmental regulations, or any other similar causes beyond the reasonable control of the affected Party.

In the case of force majeure, the affected Party shall immediately notify the other Party in writing and provide reasonable proof of the cause of the delay or inability to perform the obligations. The Party affected by force majeure shall endeavor to mitigate the consequences of such circumstances and resume the performance of obligations as soon as possible after the circumstances cease to exist.

If the force majeure circumstances last more than   days, either Party may terminate this Agreement by giving written notice to the other Party. In this case, neither Party shall be liable to the other Party for any damages arising from the termination of this Agreement.

NOTICE. Any notice, request, demand, or other communication required or permitted to be given under this Agreement shall be in writing and shall be deemed duly given either if delivered personally or sent by registered mail, return receipt requested, postage prepaid, reputable overnight delivery service to the address set forth below, or if an electronic copy of it is delivered to the email address set forth below, or such other address or email address as either Party may designate by written notice to the other Party:

If to the Accountant:

Attn.  

 , USA

 

If to the Client: 

Attn.  

 , USA

 

Either Party may change their address for receipt of notices by giving written notice to the other Party.

Notices shall be deemed received on the day of delivery if sent by hand or courier service or on the third business day after the date of posting if sent by registered mail.

GOVERNING LAW AND DISPUTE RESOLUTION. This Agreement shall be governed by and construed in accordance with the laws of the State of  , except for its conflict of laws principles. Any action or proceeding arising out of or relating to this Agreement or the breach of this Agreement shall be brought exclusively in the courts located in the State of  . The Parties hereby submit to the jurisdiction of such courts and waive any objection to venue in such courts.

SEVERABILITY. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement.

ENTIRE AGREEMENT. This Agreement constitutes the entire understanding between the Parties and supersedes all prior or contemporaneous agreements, understandings, negotiations, or discussions, whether oral or written, relating to the subject matter of this Agreement. 

AMENDMENTS. This Agreement may be amended or modified only by a written agreement signed by both Parties. Any amendments to this Agreement shall be binding only if they are in writing and signed by both Parties.

BINDING EFFECT. This Agreement shall be binding upon the Parties and their respective successors and assigns. Neither Party may assign this Agreement or any of their rights or obligations hereunder without obtaining prior written consent from the other Party, which consent shall not be unreasonably withheld.

ANNEXES. Any annexes, appendices, schedules, and exhibits to this Agreement are integral parts of this Agreement. In the event of any inconsistencies between the provisions of the main body of this Agreement and its Annexes, the provisions of the main body of this Agreement shall prevail.

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date.

THE ACCOUNTANT

THE CLIENT

 

 , USA

 

Banking Details

Bank name:  

Account number:  

 

 

______________________

(Place for signature)

 

 

 

 , USA

 

Banking Details

Bank name:  

Account number:  

 

 

______________________

(Place for signature)

 

 

Written by Megan Thompson - Reviewed by Jonathan McGill

Template Description

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table, people talking at the desk, pen, calculator, paper titled "Bookkeeping (Accounting) Services Agreement"

If you offer bookkeeping or accounting services, a complete and editable bookkeeping services agreement template will help you make a professional contract with your clients.

This bookkeeping services agreement template shows the key parts of the deal. You will have options for services, payment terms, confidentiality, and the roles and responsibilities of both parties.

With the bookkeeping services agreement form, you will get a basic structure that can be changed to fit the company, client, and service provider. It makes payment and responsibilities clear for everyone involved.

Remember that templates are a great place to start, but every bookkeeping services agreement should be unique. If you need help revising a template to comply with particular state laws and regulations, consulting with a lawyer is a good idea.

What Is a Bookkeeping Services Agreement?

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A bookkeeping services agreement is a legally binding contract between a bookkeeping or accounting service provider and their customer. This bookkeeping format dramatically impacts a business partnership's financial aspects and records.

A bookkeeping services agreement template should clearly explain what service is being provided and what the payment is. This agreement ensures the books are balanced, checks that the accounting system is correct, and creates financial records.

In the bookkeeping services agreement, both parties agree on the duration of their partnership.

Parties of the Bookkeeping Services Agreement

There are two main parties to the bookkeeping services agreement:

Service Provider

This party is the one who does the bookkeeping or accounting. It can be a person or a business that does professional bookkeeping. 

The service provider is responsible for maintaining a few things, including: 

  • Accurate financial records; 
  • Reconciling accounts; 
  • Financial statement preparation;
  • There are other related bookkeeping chores that are the service provider's responsibility. 

Client

In a bookkeeping services agreement, someone who hires a bookkeeper to handle their financial matters qualifies as a client. 

The client is reliant on the provider's accounting expertise. It is a beneficial decision since it helps people make wise financial choices. Tasks like record-keeping, analysis, and report-writing are part of this process. 

The deal must be signed by all parties who have a stake in the financial plans. The bookkeeping services agreement spells out in great detail what each party has to do. In case of a dispute, there is a list of each team member's duties, pay, and chain of command.

Key Terms

  1. Duration: It tells you when the deal begins and when it finishes. It also tells you if it's a one-time task or an ongoing job.
  2. Termination: It explains how to end the bookkeeping services agreement for both parties. For example, the minimal notice period and acceptable reasons for termination for both parties.
  3. Scope of services: The term specifies what the service provider will perform for the client regarding data input, account balance, financial reporting, and tax preparation.
  4. Compensation: It is the total cost of the services, which includes any hourly rates, flat fees, or other expenses that may apply. This section will also lay out the payment structure - whether the fee will be paid all at once or over multiple payments.
  5. Confidentiality and Data Security: It outlines specific steps to protect data security and underlines the need to keep the client's financial information private.
  6. Responsibilities of Parties: It describes how each party must fulfill its obligation. The customer must provide the required information, even if the service provider is responsible for maintaining accurate records.
  7. Intellectual Property: Ownership and usage of all service provider-created tools, software, and procedures are addressed here.
  8. Governing Law and Disputes: It describes how disagreements will be settled. For example, whether they will be solved through mediation, arbitration, or in court. It also says which jurisdiction's laws will apply to any disputes.
  9. Amendments and Modifications: It details the procedure for gaining both parties' approval of any proposed amendments or changes to the agreement.
  10. Liability and Indemnification: It reduces the service provider's responsibility for mistakes and extra costs. Suppliers may also talk about how much they have to pay for customer losses in refund agreements.
  11. Assignment of Rights: It checks whether the parties can give their rights and responsibilities to a third party under the deal.
  12. Force Majeure: It sets up a plan for what to do if something makes it difficult or impossible for one or both sides to keep their promises under the bookkeeping services agreement.

The bookkeeping services agreement is a complete set of terms that we have discussed above. Their purpose is to defend both parties' interests, clarify responsibilities and tasks, and foster a constructive and honest working partnership.

Why Is a Bookkeeping Services Agreement Important?

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A signed bookkeeping services agreement is important because it explains the terms and conditions of bookkeeping services. It helps the seller and the client trust and talk to each other more easily.

Here are the reasons:

  1. The agreement clearly explains the services that the provider will offer.
  2. Parts of the bookkeeping services agreement focus on protecting the client's financial data.
  3. The agreement outlines each party's rights and duties. The law protects both the service provider and the client from contract breaches.
  4. The agreement specifies who is liable for mistakes and financial losses.
  5. The provider's professionalism is shown in a well-written contract.
  6. The agreement details the procedures for termination by either party.
  7. The parties' respective responsibilities for any miscalculations or financial losses are laid out in detail.
  8. This agreement will be governed by and construed by the laws of the state specified.
  9. When it comes to maintaining a bookkeeper's bind properly, a dispute resolution clause can help.
  10. A well-written agreement may be modified to fit the requirements of all parties.
  11. This bookkeeping services agreement memorializes the terms upon which the parties have settled.

What To Include in Bookkeeping Services Agreement?

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Every business relationship depends on good communication, and a well-written bookkeeping services agreement is a good place to start. 

Here are some essential things to include in the bookkeeping services agreement:

Introduction and details of the parties

  • Names of both parties should be clearly listed in the agreement.

Scope of services

  • Specifics about the bookkeeping work that will be done.
  • Details about the jobs, duties, and results.
  • Specify which services are not available.

Compensation

  • Explain how you will be compensated (by the hour, a flat charge, a retainer, etc.).
  • Mention the total price and any other associated costs.
  • Set the payment method and plan.

Termination and duration

  • Specify if this is a one-time deal or a recurring one.
  • Explain what allows a company to terminate the agreement early and what kind of notice is required.

Responsibilities

  • The duties of the service provider and the client must be written in detail.
  • Describe the client's role in providing complete and up-to-date financial info.

Confidentiality and security

  • Discuss the importance of confidentiality and outline how that will be accomplished. 

Liability and indemnification

  • Inform the service provider how much you want them to pay if they make a mistake.
  • Explain how you will be paid if the provider is responsible for financial losses.

Governing law and dispute resolution

  • Name the state or jurisdiction’s laws that will apply to the deal.
  • Describe what should be done when the parties disagree. For example, mediation or arbitration.

Amendments and rights

  • Clarify the process for making and approving any amendments to the Agreement.
  • Specify whether each party can assign its rights and duties to a third party.

Force Majeure and signature

  • Talk about what happens when things don’t go as planned, making it hard to keep the deal.
  • Add a place for each person to sign and date to show that they have read and agree to the terms.

Where To Use a Bookkeeping Agreement

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A bookkeeping services agreement is what you need if you need help with your business or personal accounting.

Use this deal to set clear rules when hiring a bookkeeping firm to keep financial records, balance accounts, and do other related tasks.

Common Use Cases

When an individual or a company needs assistance with keeping track of their money and creating financial reports, they might use a bookkeeping services agreement. Common parties that use one include:

  • Small businesses: These businesses usually need help, as they can’t afford to have their own finance department. They bring in outside bookkeepers to help keep track of trades, accounts, and financial records.
  • Startups: They often hire professionals to handle their accounting so they can concentrate on their primary business and maintain accurate financial records.
  • Freelancers: Remember that you can easily find a solid freelance bookkeeping contract template. Many freelancers sometimes hire bookkeepers to handle their financial records and taxes.
  • Large firms: Big corporations may use a financial bookkeeping company.
  • Nonprofit organizations: Nonprofits engage specialists to keep accurate financial records for transparency and accountability.
  • Real estate: Bookkeeping services help real estate brokers manage payments, receipts, and finances.
  • Financial audits: Before financial audits, companies use this to verify their records for the organization.

When Not To Use the Bookkeeping Services Agreement

A bookkeeping services agreement may not be suitable in certain situations. They are:

  • A written agreement may not be required if you handle your personal accounts yourself and do not use a third-party bookkeeper.
  • A bookkeeping services agreement may not be necessary in situations where the nature of the relationship does not necessitate the maintenance of financial records.
  • Among extremely close friends or relatives, a written agreement is optional.
  • A formal bookkeeping services agreement may be unnecessary if the project is a one-time job.
  • Confidentiality provisions in an agreement may be unnecessary if the material being handled is already public knowledge or does not warrant protection.
  • A written bookkeeping services agreement may not be necessary where there is already established mutual trust between the involved parties.
  • A traditional employment contract may outline the parameters of the relationship if the bookkeeper were a full-time employee. In this case, you won’t need this agreement.
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