Some Accountants adopt the hourly charge while others take a fixed amount for projects. The hourly fee rate is prevalent among bookkeepers, and it fits for long term contracts. You may be using intellectual property in the form of tools and templates that have been developed through years of service. Just because a client is making use of your services, it does not mean that they own your intellectual property. Hence, you must include a clause regarding the protection of your IP in the bookkeeping service agreement.
Accounting Workflow Academy
- It sets clear expectations, highlights responsibilities, and minimizes the potential for misunderstandings.
- A well-defined invoice template can help ensure both you and the bookkeeper are on the same page regarding payment terms and deliverables.
- QuickBooks Self-Employed is designed specifically for freelancers and independent contractors.
- A signed bookkeeping services agreement is important because it explains the terms and conditions of bookkeeping services.
- We’ll cover key elements to consider, best practices, and a free downloadable template to get you started.
- If you do not have the documentation, you cannot back up your costs in the event of an audit.
- Because you are working with financial information as an accountant or bookkeeper, you should include access and authorization to clients’ databases in your bookkeeping contract template.
Having a clear picture of the financial figures will help in understanding your business better. Using accounting software like QuickBooks will allow you to reconcile your bank accounts quickly. A video showing this process in QuickBooks will be available in the near future.
Bookkeeping Guide for Freelancers and Independent Contractors
It sets forth the bookkeeper’s obligations, client expectations, and the bookkeeper’s payment. It also sets forth protections and confidentiality provisions for the client. To learn more about an independent contractor agreement for an accountant and bookkeeper, you can post your legal need on UpCounsel’s marketplace. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb. As is always recommended when drawing up any kind of legal document, both parties can be well served to consult a qualified attorney with experience in independent contractor contracts.
Can I use a template for a bookkeeping contract?
If you work as an independent contractor, you are technically working for yourself. QuickBooks Self-Employed is designed specifically for freelancers and independent contractors. It allows them to separate their business and personal expenses and helps make preparing their taxes simple. It includes basic invoicing capabilities and mobile apps for receipt capture and mileage tracking. However, take time to review the benefits of each of the QuickBooks online plans, especially if you have multiple clients or plan to have multiple clients in the future.
23. Signature of parties involved in the accounting contract
A bookkeeping service agreement is a binding contract for the parties involved. You need to outline the circumstances under which either party (the bookkeeper or the client) can end the contract term. This usually includes a set number of days required for either party to give accountant for independent contractor written notice to the other that they want to end the contract. On the other hand, freelancers should review the accounting contract agreement before they work together. Significant clauses regarding the project should be considered to ensure both parties are on the same page.
11. Confidentiality section of a bookkeeping service agreement template
This method can be more complex, as the money is accounted for when the work is finished. However, it is known to give a business more information regarding the future outlook of the business. It is best to reach out to a CPA for advice about what accounting method will work best for your business. Many online tools now offer a secure and convenient e-signature feature to streamline the agreement process. If you must include any technical terms, provide clear definitions within the contract itself. This signifies that both parties have read, understood, and agreed to the terms of the contract.
Limitation of Liability
Travel and other miscellaneous expenses, if the client agrees to reimburse them, should be part of this agreement. However, it is recommended that you verify all the details mentioned in the template with your legal counsel to make sure it serves your benefit and is in-tune with industry standards. This bookkeeping contract shall be governed in accordance with the laws of [Sender.State], [Sender.Country]. The Accountant agrees to hold all Client data and information as proprietary, sensitive, and confidential in nature. As such, the Accountant shall not share such information with any party without express written consent from the Client, unless otherwise required to do so by law. Furthermore, the Client assumes full responsibility for the accuracy of existing financial records.
You will indemnify or not hold the client responsible for any expenses arising out accidents or medical emergencies while providing accounting services as a freelancer. The bookkeeping contract template should state the date of commencement of the project and how long it is expected to last. A project may also be divided into discrete bits and assigned milestones date to measure progress.
6. Identify the bookkeeper and the client in your bookkeeping service agreement template
It may also outline the period of engagement and the prospective date when the bookkeeping service agreement will be deemed null and void. The Accountant shall not be considered an employee, broker, or agent of the client. The Accountant shall be solely responsible for withholding any applicable taxes from payments made by the Client for services rendered under the terms of this bookkeeping contract. The Federal tax system is a pay-as-you-go system; as an employee, your employer took taxes out each pay period, as an independent contractor, that’s your job now. Generally, if you own a business (a/k/a you are an independent contractor) you are required to pay estimated taxes. The only way you wouldn’t have to pay is if you meet all three of the IRS’s criteria.
