Bookkeeping is the first step in the accounting cycle of a company. If you own a company, regardless of its size, you might have already considered having a bookkeeper for better organization and higher accuracy.
However, before you take a bookkeeper onboard, lawyers would recommend that you prepare a bookkeeping contract. The same applies if you are an individual or a company that provides accounting/bookkeeping services. Read this article to know more.
What Is a Bookkeeping Contract?
A bookkeeping contract is a binding legal document detailing the responsibilities and liabilities of both the bookkeeping party and the client. In other words, it is a written document that explains the services the bookkeeper provides for a company in exchange for monetary compensation.
A bookkeeping contract is also known by other names like bookkeeping agreement, bookkeeping services agreement, bookkeeping terms and conditions, and bookkeeping confidentiality agreement.
What Is Included in the Bookkeeping Contract?
The bookkeeping contract also contains the license information and state laws governing the agreement along with the name and address of both parties.
The bookkeeping services agreement spells out the bookkeeper's duties and even the services that are not included in the agreement. It specifies the date of commencement of the contract, its duration, and the steps for its dissolution.
By signing the agreements, the accountant swears to abide by the client's conditions and vice versa. Most importantly, the bookkeeping contract details the pricing of the accounting services and the payment plan.
Why Is a Bookkeeping Contract Important?
It is essential to have a bookkeeping agreement for both parties involved. An accountant would have the assurance of payment for all services, including overtime payment.
A bookkeeper confidentiality agreement, as suggested by its name, guarantees that the accountant will keep the company's financial and trading information strictly confidential and responsible for its accuracy. Since a bookkeeping service agreement documents all the terms and conditions of the contract beforehand, it ensures no miscommunication/misunderstanding between the two parties.
The verbal agreement between them is formalized in a bookkeeping services agreement making either of the parties liable to legal action in case of any contractual violation.
When Is a Bookkeeping Contract Used?
A bookkeeping services agreement is used for legal and personal reasons to maintain records. It is used when a new client or contractor needs the defining responsibilities and liabilities of the contracting parties.
A bookkeeping agreement defines the scope of an accountant’s services and the specific aspects of business finance that the client needs the accountant to work on. It also provides peace of mind and legal security for both parties involved.
CocoSign provides a variety of professional contract templates that can be easily customized to suit your needs. These bookkeeping contract samples are written by our highly skilled lawyers, giving you a clear idea of the perfect bookkeeping agreement. CocoSign has a massive store of user-friendly bookkeeping contract templates. Hurry and get a free CocoSign contract template!
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