Bookkeeping Agreement

Bookkeeping Agreement

This Bookkeeping Agreement ("Agreement") is entered into as of [Month Day, Year] between [Your Company Name], a bookkeeping firm with its principal place of business located at [Your Company Address] ("Service Provider"), and [Client Name], a business owner with its principal place of business located at [Client Address] ("Client"). Collectively they will be referred as the "Parties". The parties agree as follows:

WHEREAS, the Service Provider will provide the financial recording, reporting, and consulting services to Client;

WHEREAS, the Client desires to engage the Service Provider to perform bookkeeping services as specified in this Agreement;

WHEREAS, the Service Provider agrees to provide such services in accordance with the terms set forth in this Agreement;

NOW, THEREFORE, in consideration of the mutual promises and covenants set forth herein, the parties agree as follows:

I. SCOPE OF SERVICES

  1. Monthly Bookkeeping: Record all financial transactions, including income, expenses, and receipts. Reconcile bank statements, credit card statements, and other financial accounts.

  2. Financial Reports: Provide monthly, quarterly, and annual financial reports, including balance sheets, profit & loss statements, and cash flow analysis. Custom financial reporting as per the Client's request.

  3. Payroll Support: Process payroll data and ensure compliance with local payroll regulations. Generate employee pay slips and prepare monthly payroll summaries.

  4. Tax Filings Support: Assist in compiling data for tax filings, including sales tax, payroll tax, and income tax preparation.

  5. Additional Services: Any additional services beyond the specified scope will require a separate written agreement or addendum.

II. SERVICE FEES AND PAYMENT TERMS

  1. Service Fees: The Client agrees to pay the Service Provider a monthly fee of twenty thousand dollars ($20,000) for standard bookkeeping services. Any additional services requested beyond the agreed scope will incur additional charges, which will be quoted and agreed upon separately.

  2. Payment Terms: Payment for services is due on the twentieth (20th) of each month. Invoices will be issued by the Service Provider on the twenty-fifth (25th) of each month and are due within fifteen (15) days of receipt.

  3. Late Payments: A late payment fee of ten percent (10%) may be applied to any payments that are more than thirty (30) days overdue. If payments are not received within sixty (60) days, the Service Provider reserves the right to suspend services until all outstanding balances are settled.

  4. Retainer: A one-time retainer of ten thousand dollars ($10,000) may be required before services commence, which will be applied to the final month's fees.

III. TERM AND TERMINATION

  1. Term: The term of this Agreement shall commence on [Month Day, Year] and continue for an initial period of three (3) years unless earlier terminated as provided herein.

  2. Termination by Either Party: Either party may terminate this Agreement by providing thirty (30) days' written notice to the other party.

  3. Termination for Cause: Either party may terminate this Agreement immediately if the other party materially breaches any term of this Agreement and fails to cure such breach within fifteen (15) days of receiving written notice of the breach.

  4. Effect of Termination: Upon termination, all unpaid service fees for work performed up to the termination date shall become immediately due and payable. The Service Provider will provide the Client with a final financial report and return all Client-owned records upon request.

IV. CONFIDENTIALITY

  1. Confidential Information: Both parties agree to keep all financial records, trade secrets, business plans, and other confidential information disclosed by the other party confidential.

  2. Exceptions to Confidentiality: Confidentiality obligations do not apply to information that is publicly available or required to be disclosed by law.

  3. Return of Materials: Upon termination or expiration of this Agreement, both parties agree to return or destroy all confidential information belonging to the other party.

V. LIMITATION OF LIABILITY

  1. No Guarantee: The Service Provider will use reasonable efforts to ensure the accuracy of financial records and reports, but makes no guarantees regarding future business or financial performance based on the services provided.

  2. Liability Cap: The Service Provider’s liability for any claims arising out of this Agreement will be limited to the total amount of service fees paid by the Client in the preceding six (6) months.

  3. Indirect Damages Exclusion: The Service Provider shall not be liable for indirect, consequential, or punitive damages, including lost profits, business interruption, or loss of data.

VI. OWNERSHIP OF WORK PRODUCT

  1. Client Ownership: All financial records, reports, and documents generated by the Service Provider for the Client shall remain the property of the Client.

  2. Right to Use: The Service Provider retains the right to use generic templates, tools, and methodologies for other clients, provided they do not include any of the Client’s confidential information.

VII. DISPUTE RESOLUTION

  1. Negotiation: In the event of a dispute, the parties agree to attempt to resolve the issue through good-faith negotiations before pursuing any formal legal action.

  2. Arbitration: If a dispute cannot be resolved through negotiation, the parties agree to submit the dispute to binding arbitration in State's Arbitration.

  3. Governing Law: This Agreement shall be governed by and construed in accordance with the laws of the State of [State].

VIII. GENERAL PROVISIONS

  1. Amendments: Any changes to this Agreement must be made in writing and signed by both parties.

  2. Assignment: The Client may not assign or transfer this Agreement without the prior written consent of the Service Provider.

  3. Entire Agreement: This Agreement constitutes the entire agreement between the parties and supersedes any prior agreements, oral or written.

  4. Severability: If any provision of this Agreement is found to be unenforceable, the remainder of the Agreement shall remain in full force and effect.

IX. SIGNATURES

By signing below, the parties acknowledge that they have read and understood the terms of this Agreement and agree to be bound by its terms.

Service Provider:

[Your Name]

[Job Title]

[Your Company Name]

[Month Day, Year]

Client:

[Name]

[Job Title]

[Company Name]

[Month Day, Year]

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