Bookkeeping Services MOU

What a good one includes

• A highly specific list of tasks detailing which software will be used and whether payroll, tax prep, or invoicing are included.
• Explicit deadlines for the client to provide receipts, invoices, and bank statements to prevent processing delays.
• Clear payment terms, including the monthly retainer or hourly rate, payment due dates, and late fee policies.
• Strict guidelines on how financial data will be secured, what levels of software access are granted, and confidentiality promises.
• A defined process for identifying, reporting, and correcting errors, specifying who bears the cost of any tax penalties caused by mistakes.
• An exit strategy outlining how either party can terminate the agreement, including the required notice period and how final data will be handed back.

Common mistakes to avoid

• Failing to define the exact boundaries of bookkeeping, which often leads to the bookkeeper performing unpaid tax preparation or CFO-level tasks.
• Omitting strict deadlines for clients to hand over financial documents, resulting in rushed and inaccurate month-end reconciliations.
• Neglecting to explicitly state that the bookkeeper is not filing federal income taxes, which can lead to missed filing deadlines and legal confusion.
• Forgetting to specify who owns the accounting software subscription and how historical data is transferred if the professional relationship ends.

Frequently asked questions