Free Bookkeeping Service Contract

This Bookkeeping Service Contract ("Contract") is entered into as of [Date], by and between [Your Company Name] ("Service Provider"), a company organized and existing under the laws of [Your State], and [Client Name] ("Client"), an individual or entity organized and existing under the laws of [Client State].

1. Introduction

1.1 Purpose

The purpose of this Contract is to outline the terms and conditions under which the Service Provider will provide bookkeeping services to the Client. This agreement aims to ensure that both parties clearly understand their responsibilities and obligations to facilitate a productive working relationship. The goal is to maintain accurate financial records that will support the Client's operational efficiency and compliance with regulatory requirements, thereby allowing the Client to focus on their core business activities without being bogged down by financial record-keeping tasks.

1.2 Background

As businesses continue to grow and evolve, the need for accurate financial records and bookkeeping has become paramount. The increasing complexity of financial regulations and tax laws necessitates professional bookkeeping services to mitigate risks associated with financial mismanagement. In addition, having a reliable bookkeeping service can provide the Client with strategic insights and financial analysis that can drive better business decisions. This Contract aims to establish a clear framework for the services provided by [Your Company Name], allowing the Client to focus on their core business activities while ensuring financial integrity and compliance with applicable laws and regulations.

1.3 Scope of Services

The Service Provider agrees to provide bookkeeping services as described herein, which may include but are not limited to the following:

• Recording financial transactions, ensuring all sales, purchases, income, and payments are accurately logged.

• Managing accounts payable and receivable, which includes tracking outstanding invoices, making payments to vendors, and following up on collections.

• Reconciling bank statements to ensure that the Client’s financial records match those of their bank, identifying discrepancies, and resolving them promptly.

• Preparing financial reports, including profit and loss statements, balance sheets, and cash flow statements to provide the Client with insights into their financial position.

• Ensuring compliance with applicable tax regulations and assisting in the preparation of tax returns, helping to minimize tax liabilities and ensuring timely filings.

The specific details of the services provided are further elaborated in Section 3 of this Contract, and any additional services will be discussed and documented separately to ensure clarity.

2. Definitions

2.1 Client

The term "Client" refers to [Client Name], an individual or business entity that has engaged the Service Provider for bookkeeping services. The Client may also include any designated representatives or agents authorized to act on behalf of the Client concerning this Contract.

2.2 Service Provider

The term "Service Provider" refers to [Your Company Name], which is responsible for providing the agreed-upon bookkeeping services as specified in this Contract. The Service Provider may also include any employees, agents, or subcontractors engaged by [Your Company Name] to perform services under this Contract.

2.3 Services

"Services" refers to the bookkeeping tasks and related services that the Service Provider will perform as outlined in Section 3 of this Contract. The Services may also include ancillary services that support the primary bookkeeping functions, as agreed upon by both parties.

2.4 Confidential Information

"Confidential Information" includes all non-public information that either party discloses to the other, whether orally or in writing, and relates to the business, finances, or operations of the disclosing party. This includes, but is not limited to, financial data, business strategies, customer lists, and proprietary information that the disclosing party wishes to protect from unauthorized disclosure.

3. Services Provided

3.1 Bookkeeping Services

The Service Provider will perform the following bookkeeping services for the Client:

Estimated total monthly cost for regular services: $[1,550]

The above services will be conducted in accordance with generally accepted accounting principles (GAAP) and relevant regulatory requirements. The Service Provider will utilize advanced accounting software to ensure accuracy and efficiency in the bookkeeping process, including cloud-based systems that allow for real-time updates and secure access to financial data.

3.2 Additional Services

The Service Provider may provide additional services upon request from the Client, including but not limited to:

• Financial analysis and forecasting, which helps the Client understand future financial trends based on historical data and market conditions.

• Budget preparation and monitoring to ensure the Client's spending aligns with their financial goals and objectives.

• Consultation on financial best practices, including guidance on cash flow management and expense reduction strategies.

• Assistance with financial software implementation to streamline bookkeeping processes and improve efficiency.

• Payroll processing services, including calculating employee wages, withholding taxes, and ensuring compliance with labor laws.

Additional services will be billed at the Service Provider's hourly rate of $[150] per hour unless otherwise agreed upon in writing. The Client will be informed of any additional costs before the services are rendered, ensuring there are no surprises in billing.

3.3 Exclusions

The following services are specifically excluded from this Contract:

• Audit services, which involve a comprehensive examination of financial statements by an independent auditor to ensure accuracy and compliance.

• Legal advice, which refers to guidance regarding compliance with laws and regulations that may require the expertise of a licensed attorney.

• Tax representation before government agencies, which includes advocating on behalf of the Client in dealings with tax authorities.

• Investment advice, which refers to recommendations regarding investment opportunities and asset management that fall outside the scope of bookkeeping.

• Financial consulting outside the scope of bookkeeping services, which includes broader business advisory services that require specialized expertise.

4. Term and Termination

4.1 Term

This Contract shall commence on the effective date mentioned above and shall continue in full force and effect for a period of two years unless terminated earlier in accordance with this Section. The Contract may be renewed upon mutual agreement by both parties, allowing for adjustments based on the evolving needs of the Client.

4.2 Termination for Convenience

Either party may terminate this Contract for any reason upon providing [30] days' written notice to the other party. This allows both the Client and the Service Provider the flexibility to reassess their working relationship based on changing circumstances or satisfaction with services.

4.3 Termination for Cause

Either party may terminate this Contract immediately upon written notice if the other party breaches any material term or condition of this Contract and fails to cure such breach within [10] days of receiving written notice of the breach. This ensures that both parties are held accountable for their obligations under the agreement and can act swiftly to protect their interests.

5. Compensation

5.1 Fees

The Client agrees to pay the Service Provider fees for services rendered as follows:

The Service Provider reserves the right to adjust fees upon [30] days’ notice to the Client. Such adjustments will be based on industry standards and changes in operational costs, ensuring the fees remain competitive and reflective of the quality of service provided.

5.2 Payment Terms

All invoices shall be issued at the end of each month for services rendered during that month. Payment is due [30] days from the date of the invoice. Payments not received within [30] days will incur a late fee of [1.5]% per month on the outstanding balance. The Client may request a detailed breakdown of services provided along with the invoice to ensure transparency and understanding of all charges.

5.3 Expenses

The Client agrees to reimburse the Service Provider for all reasonable out-of-pocket expenses incurred in connection with the performance of services, including but not limited to:

• Travel expenses (e.g., mileage at $[0.56] per mile), which will be documented with a mileage log.

• Office supplies (e.g., paper, ink) that are necessary for the completion of the bookkeeping tasks.

• Software subscriptions (e.g., accounting software fees) that enhance the efficiency and accuracy of the bookkeeping services.

All reimbursable expenses will be documented and included in the monthly invoice. The Client will be informed of any expenses before they are incurred to ensure they are within the budgetary guidelines established in this Contract.

6. Responsibilities of the Parties

6.1 Responsibilities of the Service Provider

The Service Provider agrees to:

1. Perform the services outlined in Section 3 in a professional and timely manner, adhering to high standards of accuracy and reliability. This includes maintaining meticulous records and ensuring that all financial data is current and correct.

2. Maintain accurate and complete records of all transactions and services rendered, ensuring that all financial data is organized and accessible for review by the Client or regulatory bodies if necessary.

3. Provide the Client with monthly financial reports and other requested documentation, including a summary of key financial metrics to assist in decision-making. This will help the Client understand their financial position and make informed decisions regarding future actions.

4. Maintain confidentiality concerning all Client information as per Section 7, ensuring that sensitive financial data is protected from unauthorized access. This includes implementing adequate security measures to prevent data breaches or leaks.

6.2 Responsibilities of the Client

The Client agrees to:

1. Provide the Service Provider with access to all necessary financial documents and information required to perform the services. This includes bank statements, invoices, receipts, and any other relevant financial documentation that reflects the Client's financial activities.

2. Review and approve all financial reports and documents provided by the Service Provider in a timely manner to facilitate ongoing operations. Prompt feedback will enable the Service Provider to make adjustments and improvements as needed.

3. Notify the Service Provider of any changes in the Client’s financial status or business operations that may affect the services provided, ensuring that the Service Provider has the most up-to-date information for accurate bookkeeping.

4. Pay all fees and reimburse expenses as outlined in Section 5, adhering to the payment terms to avoid disruptions in service. Timely payments will ensure that the Service Provider can allocate resources effectively to manage the Client's bookkeeping needs.

7. Confidentiality

7.1 Confidentiality Obligations

Both parties agree to maintain the confidentiality of any Confidential Information disclosed during the term of this Contract. This obligation of confidentiality extends beyond the termination of this Contract and will survive for a period of [five] (5) years from the date of termination. Both parties must exercise reasonable care to protect the confidentiality of the other party’s information, which may include adopting policies and procedures for handling sensitive data.

Confidential Information shall not be disclosed to any third party without the prior written consent of the disclosing party unless such disclosure is required by law or regulation. If disclosure is required, the disclosing party shall notify the other party as soon as reasonably possible, allowing the other party to seek a protective order or other remedy.

7.2 Exceptions

The confidentiality obligations set forth in this Section shall not apply to information that:

1. Is or becomes publicly available without the fault of the receiving party;

2. Is already in the possession of the receiving party at the time of disclosure, as evidenced by the receiving party’s records;

3. Is independently developed by the receiving party without the use of or reference to the Confidential Information of the disclosing party;

4. Is received from a third party without breach of any obligation of confidentiality; or

5. Is required to be disclosed by law, regulation, or court order, provided that the receiving party shall take reasonable steps to limit such disclosure.

8. Indemnification and Liability

8.1 Indemnification

The Client agrees to indemnify, defend, and hold harmless the Service Provider, its officers, directors, employees, and agents from and against any and all claims, losses, liabilities, damages, costs, or expenses (including reasonable attorney fees) arising out of or resulting from:

1. The Client's breach of any provision of this Contract;

2. Any claim that the Client’s financial information is inaccurate or incomplete;

3. The Client’s failure to provide accurate and timely information as required under this Contract; or

4. Any third-party claim arising from the Client’s use of the Service Provider's services.

8.2 Limitation of Liability

To the maximum extent permitted by law, the Service Provider’s liability for any claims arising out of this Contract shall be limited to the total amount of fees paid by the Client for the services rendered during the [3] months preceding the claim. Under no circumstances shall the Service Provider be liable for any indirect, incidental, special, or consequential damages arising out of or in connection with this Contract, even if the Service Provider has been advised of the possibility of such damages.

9. Dispute Resolution

9.1 Mediation

In the event of any dispute arising out of or relating to this Contract, the parties agree to first attempt to resolve the dispute through mediation. The mediation shall be conducted in accordance with the rules of the American Arbitration Association (AAA) or similar organization agreed upon by the parties. Each party shall bear its own costs and expenses associated with the mediation process.

9.2 Arbitration

If the dispute cannot be resolved through mediation within [30] days, the parties agree to submit the dispute to binding arbitration in accordance with the rules of the AAA. The arbitration shall take place in [City/State], and the decision of the arbitrator(s) shall be final and binding on both parties. The parties shall share equally the costs of arbitration, except that each party shall bear its own attorney fees and expenses.

10. Miscellaneous

10.1 Governing Law

This Contract shall be governed by and construed in accordance with the laws of the State of [Your State]. The parties agree that any legal action or proceeding arising out of or related to this Contract shall be brought exclusively in the state or federal courts located in [Your State].

10.2 Entire Agreement

This Contract constitutes the entire agreement between the parties regarding the subject matter hereof and supersedes all prior agreements, understandings, and negotiations, whether written or oral, related to the subject matter. No amendment or modification of this Contract shall be effective unless made in writing and signed by both parties.

10.3 Amendments

Any amendments to this Contract shall be in writing and signed by both parties. This provision ensures that any changes to the agreement are documented and agreed upon, preventing misunderstandings.

10.4 Severability

If any provision of this Contract is found to be invalid or unenforceable, the remaining provisions shall remain in full force and effect. The parties agree that any invalid or unenforceable provision shall be construed to reflect the original intent of the parties as closely as possible.

10.5 Notices

All notices required or permitted under this Contract shall be in writing and shall be deemed delivered when delivered personally, sent by certified mail, or sent by electronic mail to the addresses set forth below:

Service Provider:
[Your Company Name]
[Your Company Address]
[Your Company Email]
[Your Company Number]

Client:
[Client Name]
[Client Address]
[Client Email]
[Client Number]

11. Signatures

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

Service Provider:

[Your Name]
[Your Title]
[Your Company Name]

Client:

[Client Name]
[Client Title]
[Client Name]

Bookkeeping Templates @ Template.net