Accounting SLA Agreement

This Service Level Agreement (hereafter referred to as "SLA") is made and entered into on [Insert Date], by and between [Organization Name], with its principal place of business located at [Organization Address] (hereinafter referred to as "Client"), and [Accounting Service Provider Name], with its principal office located at [Provider Address] (hereinafter referred to as "Provider").

The purpose of this SLA is to ensure that the proper elements and commitments are in place to provide consistent accounting service support and delivery to the Client by the Provider. This SLA outlines the terms and standards to which both parties agree and is aimed at ensuring the clear understanding of service requirements, provision, and expectations.

This SLA represents a mutual agreement between the Client and the Provider for accounting services specified in this document. The objectives of this SLA are to:

• Provide clear reference to service ownership, accountability, roles, and/or responsibilities.

• Present a clear, concise, and measurable description of service provision to the client.

• Match perceptions of expected service provision with actual service support and delivery.

I. Scope of Services

A. General Accounting Services: The Provider shall perform general accounting services, including but not limited to bookkeeping, general ledger maintenance, account reconciliation, and preparation of financial statements.

B. Tax Services: The Provider will offer tax-related services such as tax planning, preparation of tax returns, and compliance with local, state, and federal tax laws.

C. Payroll Processing: This includes the management of payroll, calculation of salaries, processing of payments to employees, and ensuring compliance with relevant employment laws.

D. Financial Reporting: The Provider will prepare and deliver regular financial reports, including income statements, balance sheets, and cash flow statements.

Budgeting and Forecasting: Assisting the Client in preparing budgets, financial forecasts, and providing financial insights for better decision-making.

II. Service Performance

A. Performance Standards: The Provider commits to maintaining a high standard of accuracy and timeliness in all accounting services. Key performance indicators (KPIs) include accuracy rate of financial reports (target: 98%), and adherence to agreed-upon deadlines for service delivery (target: 100%).

B. Performance Review and Reporting: The Provider shall provide monthly performance reports to the Client, detailing compliance with the established KPIs. These reports will serve as a basis for evaluating the effectiveness and efficiency of the services provided.

C. Continuous Improvement: Both parties commit to regular meetings (quarterly) to discuss service performance and identify areas for improvement. The Provider is responsible for implementing agreed-upon improvements within a reasonable timeframe.

D. Service Downtime and Recovery: In case of any unexpected service interruptions, the Provider will notify the Client immediately and provide an estimated timeline for resolution. The Provider will take all necessary measures to minimize service downtime and its impact on the Client's operations.

III. Service Management

A. Primary Contacts: The Client and Provider will each appoint a primary contact person responsible for managing this SLA. These individuals will be the main points of contact for all matters relating to the SLA.

B. Communication Protocol: Regular communication between the Client and Provider will be maintained through emails, phone calls, and scheduled meetings. Urgent matters requiring immediate attention must be communicated through direct phone calls.

C. Issue Resolution: In the event of any service-related issues or discrepancies, the Client shall report these to the Provider's primary contact. The Provider commits to addressing and resolving such issues within five (5) business days.

D. Escalation Procedure: Should an issue not be resolved to the Client's satisfaction, it may be escalated to higher management within the Provider's organization according to a predefined escalation path.

IV. Confidentiality and Data Protection

A. Confidentiality Obligation: Both parties agree to maintain the confidentiality of all proprietary and confidential information shared during the course of the SLA. This includes financial data, business strategies, and any other information designated as confidential.

B. Data Protection Compliance: The Provider will comply with all applicable data protection laws and regulations in handling the Client's financial data. This includes implementing appropriate security measures to protect data against unauthorized access, disclosure, alteration, and destruction.

C. Data Access and Sharing: Access to confidential information shall be limited to personnel who need to know such information for the purpose of performing their duties under this SLA. The Provider must not share the Client's confidential information with any third parties without explicit written consent from the Client.

D. Data Breach Response: In the event of a data breach, the Provider is required to notify the Client immediately and take all necessary steps to mitigate the breach's impact. The Provider shall also provide a detailed report of the breach, including corrective actions taken and measures to prevent future occurrences.

V. Billing and Payment Terms

A. Fees and Charges: The Client agrees to pay the Provider for the accounting services rendered as per the fee structure outlined in Annex A of this SLA. This fee structure includes details on hourly rates, fixed service fees, and any other applicable charges.

B. Invoicing: The Provider will issue invoices to the Client on a monthly basis, detailing the services provided and the corresponding charges. Each invoice will clearly itemize all charges for full transparency.

C. Payment Terms: Payment of invoices by the Client is due within thirty (30) days from the invoice date. Late payments may incur interest charges at a rate of 2% per month on the outstanding balance.

D. Dispute Resolution: In case of any disputes regarding invoicing or payment, the Client must notify the Provider within fifteen (15) days of the invoice date. The parties agree to work in good faith to resolve any such disputes promptly.

E. Changes in Fees: The Provider reserves the right to review and modify the fee structure annually. Any changes in fees will be communicated to the Client at least sixty (60) days before they take effect.

VI. Amendments and Modifications

A. Modification Process: Any amendments or modifications to this SLA must be made in writing and signed by authorized representatives of both parties.

B. Review Schedule: This SLA will be subject to an annual review. Either party may propose amendments to reflect changes in service requirements or market conditions.

C. Effective Date of Amendments: Amendments will become effective on the date specified in the amendment document, which should not be less than thirty (30) days from the date of agreement unless mutually agreed otherwise.

VII. Term and Termination

A. Term: This SLA will be effective from [Insert Start Date] and will remain in effect for a period of one year. It will automatically renew for subsequent one-year terms unless terminated by either party.

B. Termination for Cause: Either party may terminate this SLA with immediate effect in case of a material breach by the other party, provided the breaching party fails to cure the breach within thirty (30) days of written notice.

C. Termination for Convenience: Either party may terminate this SLA for any reason by providing sixty (60) days written notice to the other party.

D. Effect of Termination: Upon termination, the Client shall pay for all services rendered up to the termination date. Any confidential information obtained during the SLA term must be returned or destroyed as per the confidentiality terms.

E. Post-Termination Obligations: The Provider will assist in the orderly termination of services, including transferring any client data or documents back to the Client, subject to the agreed upon terms.

VIII. Dispute Resolution

A. Negotiation: In the event of a dispute, both the Client and the Provider agree to first attempt to resolve the issue through direct negotiation.

B. Mediation: If negotiation fails, the parties agree to engage in mediation before resorting to litigation. The costs of mediation shall be shared equally between both parties.

C. Litigation: Should mediation fail, the parties may seek legal recourse. Any litigation will be conducted in accordance with the governing law and jurisdiction clauses of this SLA.

IX. Liabilities and Indemnities

A. Limitation of Liability: The Provider’s liability under this SLA shall be limited to the total amount paid by the Client for the services rendered during the twelve (12) months preceding the claim.

B. Indemnification: Each party agrees to indemnify and hold harmless the other party from any claims, damages, losses, or expenses caused by the indemnifying party's negligence or willful misconduct.

C. Exclusions: Neither party shall be liable to the other for any indirect, special, incidental, punitive, or consequential damages, including but not limited to loss of profits.

X. Force Majeure

A. Definition: Neither party shall be liable for any failure or delay in performance under this SLA due to circumstances beyond their reasonable control, including but not limited to natural disasters, acts of government, war, civil unrest, or power outages (“Force Majeure events”).

B. Notification: The affected party must notify the other party promptly and outline the expected duration of the Force Majeure condition.

C. Suspension of Services: Obligations under the SLA may be suspended for the duration of the Force Majeure event.

XI. Governing Law and Jurisdiction

A. Governing Law: This SLA and any disputes arising out of or related to it shall be governed by and construed in accordance with the laws of [Insert Jurisdiction].

B. Jurisdiction: The parties agree that the courts of [Insert Jurisdiction] will have exclusive jurisdiction over any disputes or litigation arising out of or related to this SLA.

Signatures

This Service Level Agreement is agreed to and accepted by the undersigned authorized representatives of the Client and the Provider.

For the Client

[Signature]

[Printed Name]

[Title]

[Date]

For the Provider

[Signature]

[Printed Name]

[Title]

[Date]