As a business owner, finding the right accounting services is crucial to maintain your financial records accurately and efficiently. However, before hiring an accounting firm, it is essential to have an accounting service agreement in place.
An accounting service agreement is a legal document that outlines the terms and conditions of the services that will be provided by the accounting firm. It is a binding contract that safeguards both parties` interests and sets expectations for the quality and scope of services to be performed.
If you are in the process of preparing an accounting service agreement, here is a sample to guide you through the process:
[Company Name] Accounting Service Agreement
This agreement (“Agreement”) is entered into by and between [Company Name] (the “Company”) and [Accounting Firm Name] (the “Accounting Firm”). The effective date of this Agreement is [Date].
Scope of Services
The Accounting Firm agrees to provide the following services to the Company:
1. Accounting and bookkeeping services related to the Company`s financial transactions, including recording of financial transactions, accounts receivable and payable management, bank reconciliation, and preparation of financial statements.
2. Tax planning and preparation, including income tax returns, sales tax returns, and payroll tax returns.
3. Advice and consulting services on financial matters related to the Company`s operations, such as budgeting, cost controls, and financial analysis.
4. Other accounting and financial services as mutually agreed upon by both parties.
Compensation
The Company agrees to pay the Accounting Firm for the services provided as per the following terms:
1. The Accounting Firm will charge a fixed fee of [$Amount] per month for bookkeeping and accounting services and an hourly rate of [$Rate] for consulting services.
2. The billing cycle will be monthly, and the Company will make payments within [Payment terms] days of receiving the invoice.
Term and Termination
This Agreement shall remain in effect until terminated by either party in writing with [Notice period] days` notice. Either party may terminate this Agreement without cause upon [Notice period] days` written notice.
Confidentiality
The Accounting Firm understands that they may have access to the Company`s confidential information and agrees to maintain strict confidentiality of such information. The Accounting Firm shall not disclose any confidential information to any third party without the Company`s prior written consent.
Governing Law
This Agreement shall be governed by and construed in accordance with the laws of the state of [State], and any disputes arising out of or in connection with this Agreement shall be resolved through arbitration in [City], [State].
This accounting service agreement sample can be used as a template to create your own agreement while keeping in mind that every business has its unique needs, and the agreement should be tailored accordingly. A well-written and comprehensive agreement sets the foundation for a successful and long-lasting relationship with your accounting firm.
