Accounting Contract Template

How to Write an Accounting Contract?

Use an Accounting Agreement to establish a professional relationship between a client and an independent accountant. This document is useful for businesses that want certain aspects of their finances handled and for individuals who have personal accounting needs. A professional accountant will know how to deal with start-up accountancy tasks, company registration, bookkeeping, accountancy references for letting agencies, and other financial challenges.

Do not confuse this document with a Bookkeeping Contract. Both agreements cover important parts of any business and they may appear to be the same from the outside, especially when the same professional is asked to provide both types of services. However, there are major differences. Bookkeeping deals with identifying, recording, and measuring financial transactions, while accounting summarizes, interprets, and communicates these transactions. The goal of bookkeeping is to keep all records of financial transactions in order, and then accounting analyzes the financial situation and communicates the insights and observations based on the available data.

Accounting Contract Clauses

Add the following details to your Accounting Services Agreement:

1. Names and contact information of the parties.
2. Full list of the accounting services to be provided - for instance, handling billing and payroll records, bank reconciliations, auditing, preparation of ledgers, financial statements, and tax returns.
3. Payment information. Generally, the parties agree to pay for the accounting services on a monthly basis. State the hourly rate of the accountant and the method of payment.
4. Duration of the agreement.
5. Independence of the relationship. The accountant acts as an independent contractor and not as an employee.
6. Confidentiality clause. The accountant is not allowed to share any financial information, industry knowledge, or trade secrets received from the client while providing their services.
7. Termination of the agreement. Usually, a 30-day advance written notice is enough to cancel the contract earlier than scheduled;
8. Signatures of the parties that demonstrate their willingness to be bound by all the terms and conditions put in writing.

Still looking for a particular form? Take a look at these similar forms below:

• Freelance Contract;
• Consulting Agreement;
• Agency Agreement.