Bookkeeping contract template

This a bookkeeping contract template sample that you can use free of charge. You can copy and paste it into Microsoft Word or Google Docs and edit as you like.

Bookkeeping Service Agreement

This Bookkeeping Service Agreement (the "Contract") is entered into on _________________________ [Date] by and between:

Bookkeeping service provider: _________________________ [Bookkeeper or Company Name] located at _________________________ [Provider Address] (the "Provider").
Client: _________________________ [Client Name] located at _________________________ [Client Address] (the "Client").

1. Scope of Services

The Provider agrees to provide bookkeeping services to the Client as outlined below:

1. Service Description

The Provider shall perform bookkeeping services for the Client’s business located at _________________________ [Business Address] on _________________________ [Days of the Week], during _________________________ [Working Hours or Time Zone].

2. Services Included

The bookkeeping services shall include but are not limited to:

_________________________ [Recording financial transactions]
_________________________ [Reconciling bank and credit card statements]
_________________________ [Managing accounts payable and receivable]
_________________________ [Preparing monthly financial reports]
_________________________ [Payroll processing and related filings]
_________________________ [Budget tracking and expense categorization]
_________________________ [Other bookkeeping or financial tasks as agreed upon by both parties]

3. Frequency

The services shall be performed _________________________ [Frequency] per _________________________ [Week/Month/Quarter].

2. Terms of Contract

This Contract shall commence on _________________________ [Start Date] and shall continue for an initial term of _________________________ [Number] months/years, unless terminated earlier as provided herein.
After the initial term, this Contract shall automatically renew for successive periods of _________________________ [Number] months/years, unless either party provides written notice of termination at least _________________________ [Number] days prior to the expiration of the then-current term.

3. Payment Terms

The Client agrees to pay the Provider a total sum of $_________________________ [Amount] per _________________________ [Frequency] for the bookkeeping services rendered.
Payment shall be made _________________________ [Payment Method] within _________________________ [Number] days of receipt of invoice.
Late payments shall incur a late fee of _________________________ [Late Fee Amount] for each week the payment is overdue.

4. Termination

Either party may terminate this Contract by providing written notice to the other party _________________________ [Number] days prior to the intended termination date.
In the event of termination, the Client shall pay for all services rendered up to the termination date.

5. Force Majeure

Neither party shall be liable for any failure or delay in performing their obligations under this Contract if such failure or delay is due to circumstances beyond their reasonable control, including but not limited to acts of God, war, terrorism, civil unrest, government action, fire, flood, or natural disasters.

6. Confidentiality

Both parties agree to maintain the confidentiality of any proprietary or sensitive financial information disclosed during the course of this Contract. This includes but is not limited to financial records, client lists, and trade secrets.

7. Governing Law and Jurisdiction

This Contract shall be governed by and construed in accordance with the laws of _________________________ [Your State or Country]. Any disputes arising out of or in connection with this Contract shall be resolved exclusively by the courts of _________________________ [Your State or County].

8. Entire Agreement

This Contract constitutes the entire agreement between the parties and supersedes all prior agreements, understandings, and negotiations, whether written or oral.

IN WITNESS WHEREOF, the parties hereto have executed this Contract as of the date first above written.

Provider
Signature: _________________________ [Signature]
Name and title: _________________________ [Name and Title]
Date: _________________________ [Date]

Client
Signature: _________________________ [Signature]
Name and title: _________________________ [Name]
Date: _________________________ [Date]

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What's a Bookkeeping Contract?

A bookkeeping contract is a legal agreement between two parties, typically a client (such as a business owner) and a bookkeeping service provider, that outlines the terms and conditions of the bookkeeping services to be performed. This contract ensures transparency, accountability, and protection for both parties, helping prevent misunderstandings regarding financial recordkeeping. In this article, we'll explore the essential components of a bookkeeping contract, its importance, and the key considerations when drafting or signing one.

1. Definition and Scope

A bookkeeping contract defines the scope of services to be provided. This may include maintaining financial records, reconciling bank statements, processing invoices, managing payroll, preparing basic financial reports, and ensuring records comply with accounting standards. The scope should also clarify whether services extend to tax preparation or collaboration with accountants.

2. Parties Involved

The contract identifies the parties: the client who requires bookkeeping services and the service provider (an independent bookkeeper, a bookkeeping firm, or a freelancer). It should include each party’s legal name, business details, and contact information, as well as their respective roles and responsibilities.

3. Terms and Conditions

This section outlines the key terms governing the agreement, including payment structure (hourly, monthly retainer, or project-based fees), invoicing schedules, late payment policies, and cancellation terms. It may also include provisions regarding liability limits, dispute resolution processes, and requirements for maintaining accurate financial records.

4. Duration and Renewal

The contract specifies the length of the agreement—whether for a one-time project, a fixed term (e.g., 6 months), or an ongoing arrangement. Renewal options, termination clauses, and procedures for renegotiation or modification should be included to ensure flexibility and clarity.

5. Service Specifications

Detailed service specifications are essential. This may include the bookkeeping software to be used (e.g., QuickBooks, Xero), the frequency of updates, reporting standards, deadlines for financial statements, and compliance with client-specific preferences. Establishing clear quality standards helps avoid confusion and ensures client satisfaction.

6. Legal Compliance

Bookkeeping contracts must comply with relevant laws and regulations, including data protection laws, financial reporting standards, and, in some jurisdictions, licensing requirements. They may also require adherence to generally accepted accounting principles (GAAP) or International Financial Reporting Standards (IFRS), depending on the client’s needs.

7. Confidentiality and Data Security

Because bookkeeping involves handling sensitive financial data, confidentiality and data security clauses are critical. These provisions protect the client’s private information and ensure that the bookkeeper uses secure methods for storing, sharing, and managing financial records. Non-disclosure agreements (NDAs) may also be included.

Conclusion

Bookkeeping contracts are essential for creating a structured and secure relationship between businesses and bookkeeping professionals. By clearly outlining the scope of work, terms of payment, responsibilities, and confidentiality requirements, these contracts minimize risks and establish trust. Whether you’re a business owner hiring a bookkeeper or a service provider offering financial recordkeeping, a well-drafted bookkeeping contract is key to ensuring a professional and mutually beneficial arrangement.