Bookkeeping Client Service Agreement

What a good one includes

• A highly detailed list of services included, such as bank reconciliations, accounts payable, or sales tax filing, to prevent scope creep.
• A clear clause outlining the client’s duty to provide accurate, timely financial data and receipt submissions by a specific deadline each month.
• Precise terms detailing your rates, billing frequency, late fees, and whether you require automatic bank authorization or a retainer.
• An explicit agreement on who owns and pays for the accounting software licenses and third-party integrations used during the engagement.
• A robust confidentiality clause that assures the client their sensitive financial data, bank credentials, and business strategies are legally protected.
• A clear notice period and step-by-step process for wrapping up the accounts and transferring data if either party decides to end the contract.

Common mistakes to avoid

• Vaguely defining the scope of work, which inevitably leads to clients expecting extra tasks like catch-up cleanups or tax prep for free.
• Failing to include a clear timeline or deadline for when clients must deliver their source documents, resulting in delayed reconciliations and missed filing dates.
• Neglecting to state who owns the accounting files and software data, which can cause messy ownership disputes during offboarding.
• Omitting a limitation of liability clause, leaving your personal or business assets vulnerable if a client faces an audit or makes an error based on historical data they provided.

Frequently asked questions