Bookkeeping Service Agreement

What is a bookkeeping service agreement?

A bookkeeping service agreement is a type of services contract that deals with the engagement of a bookkeeper or accountant for the provision of professional services to individual and business clients across the UK. A standard bookkeeping service agreement shall include scope of services, duration of services, payment structure and termination clause.

This sample of bookkeeping services can be suitable for bookkeepers, accountants and financial service providers for onboarding new and existing clients.

For the provision of other types of services, a general service contract template should be used instead.

What should be included in this bookkeeping service agreement template?

A standard bookkeeping service agreement must include the following:

Details of the Parties

The text of a bookkeeping service agreement template should outline full information about the service provider and the client. This information must include full legal name, business registration number, and contact email and telephone number.

Scope of Services

Each agreement template must outline the scope of service to be provided, such as:

• short description;
• key dates;
• important milestones;
• engagement of subcontractors;
• engagement of key staff (in a situation when service should be provided by specific employees only); and
• location of the provision of services.

Fee Structure

Inclusion of a detailed fee structure is one of the most important elements for any bookkeeping services contract template that cannot be omitted. This clause must outline:

• services fees in pounds, exclusive of VAT;
• frequency of payment and invoicing;
• list of additional expenses that should or should not be covered.

What are the benefits of this bookkeeping service agreement template?

By customising this bookkeeping service agreement template with FasterDraft, you get the document with the following features:

• a solid template in both PDF and editable Word format;
• a document with a clear structure and professional wording;
• a document that is suitable for application across the UK;
• a template that fully complies with provisions of the Anti-Money Laundering Regulation 2017 and Proceeds of Crime Act 2002;
• a document that can be fully customised for the needs of your business;
• a document that is available for instant digital download right after the purchase.

Who can use this bookkeeping service agreement sample?

This contract for bookkeeping services can be used by:

Self-employed bookkeepers

If you are a one-man company, having a simple bookkeeping service agreement sample is the first step for doing business professionally. It helps you not only onboard clients but also ensure that your business interest is duly protected.

Small bookkeeping firms

If you run an accounting or bookkeeping boutique firm, you may deal with various clients on a daily basis. It can be a headache for your business operating with a small team to negotiate terms and conditions of each new contract again and again.

By customising this bookkeeping service agreement template with FasterDraft, you get a solid basic template that can be reused by your business an unlimited number of times to onboard your clients.

UK businesses

If you run a business and are looking to hire a professional accounting or bookkeeping firm, the first step is to find a simple bookkeeping service agreement sample. By customising this template on our online platform, you ensure that the final document fully protects your legal interest as well as is 100% suitable for the type of services to be provided.

If, however, a bookkeeping or accounting firm offers their standard bookkeeping service agreement template, do not rush to sign it immediately. Take some time to review, and pay attention to the following risky provisions:

• Hidden fees. Sometimes accountants may ask you to pay on top of the agreed price, including work of their staff during weekends or public holidays and coverage of printing materials.
• Uncontrolled increase. Make sure the document does not grant the service provider the right to increase the fees without your consent.
• Periodic increase of fees. Sometimes a long-term ample contract for bookkeeping services may include an automatic increase of fees quarterly or annually.
• Penalties & Fines. Check if the template provides any extreme penalties and fines for the client.
• Termination. According to the general principles of contract law in the UK, either party should have the right to terminate the contract earlier. Make sure this right is available for you in the text of the offered template.

Why use a written bookkeeping service contract agreement?

Before the start of the provision of services, both the service provider and the client may not see any need to have a written contract. The price seems to be acceptable, key dates are set and both parties are eager to start as soon as possible. Failing to define essential terms and conditions for the provision of bookkeeping and accounting services in writing may, however, backfire at later stages.

Here are 3 main reasons why having a written bookkeeping service contract agreement in the UK is a must.

Avoid Disputes

Everything that the parties agree on verbally is almost impossible to prove in the future. Sometimes parties negotiate partially by phone and by SMS; that makes the future contractual arrangement vague and unclear. In such circumstances missing important details, such as confidentiality, termination or any other important clause, can happen.

Therefore, once a party has all main provisions set in writing, it is much harder for both the bookkeeper and the client to cut the corners.

Define Deliverables

Provision of accounting services itself is the process that shall result in a specific final deliverable. For example, a company operating in the UK needs some help to file quarterly or monthly VAT returns to the HM Revenue & Customs.

That’s why defining the final product the service provider shall deliver is essential. This also covers the format in which it should be delivered, for example, on a disc, sent in Google Docs, in a printed presentation, in a PDF file sent by email, etc.

Mutual Obligations

At first look it may appear that a contract for bookkeeping services is only about providing services and paying for them. However, the provision of high-quality services requires mutual efforts from both the bookkeeper and the client.

For example, John runs a private limited company whose annual turnover exceeded 15 million pounds last year. This requires John to undergo a mandatory financial audit. To perform such an audit, John has to provide the bookkeeper and audit team with all requested financial documentation. Failure to do so may result in the final report not being accurate.

AML Reporting Obligation & Confidentiality

A good example of a bookkeeping service level agreement example should include a standard confidentiality clause. By virtue of such a clause, the service provider undertakes to not disclose obtained information from the client, including financial statements, to third parties. Failure to do so will result in a material breach of the contract.

However, disclosure of such information can be required by virtue of the Anti-Money Laundering Regulation 2017 should the service provider consider the client’s financial information to be suspicious or fraudulent. If this is a case, such an AML disclosure shall fall out from the confidentiality clause.

How to customise this template with FasterDraft?

To get a fully customisable document template, follow a few easy steps below:

1. Click the “Create Document” button.
2. Answer simple questions in the form.
3. Select a template’s format – bookkeeping service agreement template PDF or Word.
4. E-sign the document online.
5. Make a payment.

The document is ready for instant download immediately after the purchase.