Bookkeeping Service Agreement

The Bookkeeping Service Agreement is a legally binding document that outlines the terms and conditions between the accountant (referred to as Party 1) and the client (referred to as Party 2). This agreement is important as it establishes the contractual relationship between the parties and defines the scope of services to be provided.

 

The document begins with a brief introduction, stating that the client desires to appoint the accountant to perform bookkeeping services on their behalf. It also includes definitions and interpretation clauses to ensure clarity and understanding throughout the agreement.

 

The contractual relationship section (Section 2) outlines the appointment of the accountant as the client's bookkeeper and specifies the services to be provided. It emphasizes that any service outside the defined scope will require a new agreement. It also clarifies that the accountant's authority is limited to the services detailed in the agreement and does not create an employer-employee relationship.

 

The service fees section (Section 3) details the payment terms, including the service rate per hour, invoicing process, and payment due date. It also addresses expenses incurred by the accountant and the requirement to obtain the client's consent for expenses exceeding a certain limit.

 

The liabilities and indemnities section (Section 4) states that the accountant's rights and benefits are enforceable only through the appointment under this agreement. It also limits the liability of both parties for indirect or consequential loss.

 

The term and termination section (Section 5) specifies the duration of the agreement and the termination process, allowing either party to terminate with one month's written notice.

 

The variation and severability section (Section 6) states that any amendment or variation to the agreement must be in writing and executed by both parties. It also addresses the invalidity or unenforceability of any provision, which will not affect the remaining provisions.

 

The counterparts section (Section 7) allows the agreement to be executed in multiple counterparts, each of which is considered an original.

 

The governing law and jurisdiction section (Section 8) specifies the jurisdiction for any disputes arising from the agreement.

 

The notices and service section (Section 10) outlines the requirements for giving notice under the agreement, including the methods of delivery and the deemed time of service.

 

Overall, this Bookkeeping Service Agreement is a comprehensive document that clearly defines the rights, responsibilities, and obligations of both the accountant and the client, ensuring a mutually beneficial and legally sound relationship.

How to use this document?

1. Review the entire Bookkeeping Service Agreement to understand its purpose and scope.

2. Pay attention to the definitions and interpretation clauses to ensure a clear understanding of the terms used throughout the agreement.

3. Understand the contractual relationship section (Section 2) to know the accountant's role as the client's bookkeeper and the services to be provided. Note that any service outside the defined scope requires a new agreement.

4. Familiarize yourself with the service fees section (Section 3) to understand the payment terms, including the service rate, invoicing process, and payment due date. Take note of the accountant's responsibility to obtain consent for expenses exceeding a certain limit.

5. Be aware of the liabilities and indemnities section (Section 4), which limits the liability of both parties for indirect or consequential loss.

6. Understand the term and termination section (Section 5) to know the duration of the agreement and the termination process, allowing either party to terminate with one month's written notice.

7. Note the variation and severability section (Section 6), which requires any amendments or variations to be in writing and executed by both parties. Understand that the invalidity or unenforceability of any provision will not affect the remaining provisions.

8. Take note of the counterparts section (Section 7), which allows the agreement to be executed in multiple counterparts.

9. Understand the governing law and jurisdiction section (Section 8) to know the jurisdiction for any disputes arising from the agreement.

10. Familiarize yourself with the notices and service section (Section 10) to understand the requirements for giving notice under the agreement, including the methods of delivery and the deemed time of service.

When using this Bookkeeping Service Agreement, ensure that both parties have a clear understanding of their rights and responsibilities. Keep accurate records of services provided and expenses incurred. Communicate any disputes or issues in writing within the specified timeframe. Regularly review the agreement to ensure compliance with applicable laws and regulations. Seek legal advice if needed.