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Accounting Service Agreement

Accounting Services Agreement

This Accounting Services Agreement (“Agreement”) is entered into as of [Month Day, Year] (the “Effective date”) by and between [Your Company Name], a [state of incorporation] corporation, with its primary place of business at [Full Address] (“Provider”), and [Your Partner Company Name], a [state of incorporation] corporation, with its primary place of business at [Full Address] (the “Client”), collectively referred to as the “Parties”.

WHEREAS, the Client wishes to engage [Your Company Name]to provide accounting services, and [Your Company Name] agrees to provide such services under the terms and conditions set forth in this Agreement.

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, the parties agree as follows:

1. Scope of Services

The Provider agrees to provide accounting services to the Client as described in Exhibit A attached hereto. Services may include, but are not limited to financial statement preparation, payroll services, tax planning and compliance, and other services agreed upon by the Parties stated below:

  • General bookkeeping and accounting.

  • Preparation and filing of tax returns.

  • Financial auditing services.

  • [Any additional services agreed upon].

These services shall be performed in accordance with the prevailing accounting standards and regulations.

2. Duration of Agreement

This Agreement shall commence on the Effective Date, and shall continue in force through [End date], unless terminated earlier as provided herein.

3. Fees and Payment Terms

The Client shall pay the fees to the Provider as set forth in Exhibit B attached hereto. Invoices will be issued monthly and are due and payable within thirty (30) days of receipt. Late payments shall attract interest at a rate of [x]% per month.

4. Confidentiality and Data Protection

In the interest of fostering a secure and trustworthy partnership, [Your Company Name] and the Client mutually agree to uphold the highest standards of confidentiality and data protection. This commitment is foundational to our collaboration, ensuring the integrity and privacy of sensitive information exchanged between both Parties. Below are the five major obligations and responsibilities each Party agrees to undertake as part of this agreement:

  1. Strict Confidentiality Measures: Both [Your Company Name] and the Client pledge to protect all confidential information received from the other Party with utmost diligence. This involves treating all such information with the same level of care as each would with its own sensitive data, but always with no less than a reasonable degree of care. Confidential information encompasses, but is not limited to, business strategies, customer lists, technology, product specifications, and any other data that is not publicly available.

  2. Compliance with Laws and Regulations: Each Party commits to strictly comply with all applicable laws and regulations concerning data protection and privacy. This includes, but is not limited to, the General Data Protection Regulation (GDPR) for Parties operating within the European Union, and any other local, national, or international regulations relevant to the Parties' operations. This commitment extends to implementing and maintaining appropriate measures to protect personal data against unauthorized or unlawful processing and against accidental loss, destruction, or damage.

  3. Employee and Third-Party Access: Both Parties shall limit access to confidential information to employees, agents, or third parties who have a legitimate need to know such information in connection with this agreement. Furthermore, both Parties agree to ensure that any employees, agents, or third parties who have access to confidential information are bound by obligations of confidentiality no less stringent than those set forth in this agreement.

  4. Secure Data Handling Practices: [Your Company Name] and the Client both agree to implement and maintain robust data handling practices. This includes employing physical, technical, and administrative safeguards to protect confidential information. Measures such as encryption, access controls, secure data storage solutions, and regular security assessments are examples of practices to be adopted to prevent data breaches and unauthorized access.

  5. Breach Notification and Mitigation: In the event of a data breach or unauthorized disclosure of confidential information, the Party responsible for the breach shall promptly notify the other Party. Both Parties agree to cooperate fully in investigating and mitigating any potential harm or fallout from such a breach. This includes taking immediate steps to secure any compromised data, notifying affected individuals if applicable, and implementing measures to prevent future breaches.

5. Liability and Indemnification

The Provider shall perform services with reasonable care and skill. However, the Provider shall not be liable for any loss or damage arising from the provision of services except in the case of gross negligence or willful misconduct.

The Client agrees to indemnify and hold the Provider harmless from any claims, damages, or expenses arising from the Provider's services, except in cases of the Provider's gross negligence or willful misconduct.

6. Termination Conditions

To ensure clarity and fairness in the dissolution of our partnership, [Your Company Name] and the Client establish the following termination conditions as part of this Agreement. These conditions are designed to manage the cessation of our business relationship with integrity, safeguarding the interests and obligations of both Parties.

  • Notice of Termination: Either Party may initiate the termination of this Agreement by providing a written notice of thirty (30) days to the other Party. This notice period allows both [Your Company Name] and the Client ample time to adjust their operations accordingly and ensure a smooth transition.

  • Outstanding Payments and Obligations: Upon the issuance of a termination notice, both Parties agree to settle any outstanding payments or obligations before the termination date. This includes, but is not limited to, unpaid invoices, completion of pending services or deliverables, and any other financial liabilities agreed upon in this Agreement. [Your Company Name] and the Client commit to providing a clear statement of account within fifteen (15) days of the termination notice to facilitate the resolution of these financial obligations.

  • Confidential Information Handling: Consistent with the commitment to confidentiality and data protection outlined in this Agreement, upon termination, both Parties must either return or destroy all confidential information received from the other Party. The choice of returning or destroying the confidential information shall be at the discretion of the disclosing Party. Both Parties agree to certify in writing that all such information has been returned or destroyed, as directed, within ten (10) days following the termination date.

  • Intellectual Property Rights: Termination of this Agreement shall not affect the ownership and rights of intellectual property. Each Party retains its pre-existing rights to intellectual property, and any licenses or rights granted under this Agreement will cease unless otherwise agreed in writing.

  • Survival of Obligations: It is understood that certain obligations under this Agreement, including but not limited to confidentiality, data protection, and any other obligations which by their nature should survive termination, will remain in effect even after the termination of this Agreement.

  • Final Settlement and Release: Both [Your Company Name] and the Client agree to conduct a final settlement meeting within thirty (30) days post-termination to ensure all financial, operational, and contractual obligations have been fulfilled by both Parties. Following this settlement, each Party shall provide a release to the other Party from any further obligations or liabilities related to this Agreement, except those intended to survive termination.

7. Dispute Resolution

In recognition of the potential for disagreements or disputes arising from or related to the provisions of this Agreement, [Your Company Name] and the Client commit to a structured and equitable process for resolving such matters. Our aim is to handle disputes with minimal disruption to our ongoing business operations and relationships, maintaining professionalism and goodwill throughout the process. The following outlines the agreed-upon mechanisms for dispute resolution:

Step 1: Mediation

Initiation: Either Party may initiate mediation by providing a written request to the other Party, detailing the nature of the dispute. Upon receipt of this request, both Parties agree to engage in mediation efforts in good faith.

Selection of Mediator: [Your Company Name] and the Client will mutually agree upon a mediator from a list provided by the American Arbitration Association (AAA) or another recognized mediation body. This selection should occur within ten (10) days of the mediation request.

Mediation Session: The mediation session shall be scheduled at a time and location agreeable to both Parties, ideally within thirty (30) days of the mediator's selection. Both Parties agree to participate actively and in good faith, with the aim of reaching a mutually satisfactory resolution.

Costs: The costs of mediation, including the mediator's fees, shall be shared equally between [Your Company Name] and the Client, unless otherwise agreed upon during the mediation.

Step 2: Arbitration

Initiation: If mediation does not result in a resolution, either Party may initiate arbitration by submitting a written demand to the other Party, in accordance with the rules and procedures of the American Arbitration Association.

Arbitration Process: The arbitration shall be conducted by a single arbitrator, selected according to the AAA's rules and procedures. The arbitration proceedings shall be held in a location mutually agreeable to both Parties, with the aim to complete the process within ninety (90) days of the arbitrator's appointment.

Decision: The arbitrator's decision shall be final and binding on both Parties. The award issued by the arbitrator can be entered into any court having jurisdiction over the matter. The arbitrator shall have the authority to award the same damages and relief that a court can.

Confidentiality: The arbitration process, including the proceedings, submissions, and the decision, shall be kept confidential by both Parties, except as required by law or for the purpose of enforcing the arbitration award.

Costs: Unless the arbitrator determines otherwise, each Party shall bear its own costs and attorneys' fees, and the costs of arbitration, including the arbitrator's fees, shall be shared equally between [Your Company Name] and the Client.

Finality of Dispute Resolution Process: Both Parties agree that the steps outlined above represent the exclusive means for resolving any disputes arising from or related to this Agreement. By committing to mediation and, if necessary, arbitration, [Your Company Name] and the Client aim to resolve disagreements in a manner that is efficient, fair, and preserves the integrity of their business relationship.

This Agreement shall be governed by and construed in accordance with the laws of [State]. In witness whereof, the Parties have executed this Accounting Services Agreement as of the Effective Date.



[Your Company Name]:

[Your Name]

[Your Title]

[Date]

[Your Signature]

[Your Partner Company Name]:

[Your Client Name]

[Job Title]

[Date]

[Signature]

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