Being a bookkeeper you must maintain trust and be professional with your clients. A well-drafted bookkeeping contract is the most effective way to establish clear expectations and ensure smooth operations.
Contracts not only protect both parties but also serve as a means to avoid tension derived from misinterpretation of business relations. In fact, over 26% of business professionals have had a hard time getting a sign-in client contract.
In this blog, we’ll discuss what steps you should take if you want to develop a bookkeeping contract. We also provide a FREE bookkeeping contract template for you to use.
What is a bookkeeping contract?
A bookkeeping contract is an agreement between a bookkeeper and the client designed to minimize potential risks associated with their professional relationship. The contract lays out all essential details of the engagement, including scope of work, schedules, payment modes and other important terms that the bookkeeper and their client agree on so that they can avoid scenarios that may lead to disagreement.
Pro tip: There is a difference between a proposal and a contract as far as engagements with the client are concerned. Here’s what you must know about proposal vs contract.
FREE Bookkeeping Contract Template
Here is a FREE bookkeeping contract template from Cone, ideal for bookkeepers, freelancers, accountants, as well as firms to customize and use.
This also contains a full engagement letter, complete with all key aspects of an accounting agreement. It is designed to address various demands of individual bookkeepers, self-employed workers as well as accounting businesses. Whether you’re managing individual clients or offering firm-wide services, this contract can be customized effortlessly to fit your requirements. Available in web and PDF formats, it ensures compliance with legal standards and saves you time, making it an indispensable tool for professionals.
Cone's proposal templates:
- Accounting Services Proposal Template-UK
- Accounting Services Proposal Template-US
- Bookkeeping Proposal Template
- CFO Services Proposal
Key Elements to Include in Your Bookkeeping Contract
Writing a good bookkeeping contract is crucial since it will define the working relationship that you have with your clients, avoid common misconceptions or misinterpretations and establish trust. Here’s what it should include:
1. Cover Letter
Start your contract with a personalized cover letter. This should introduce your business, highlight your expertise, and briefly explain the purpose of the agreement. A friendly yet professional tone establishes rapport and sets the right tone for your relationship.
2. Executive Summary
Summarize this agreement briefly in this section. It should emphasize the kind of services you shall be performing, the period of the contract, and the expected results. This acts as a snapshot of the contract, giving your client an immediate understanding of what to expect.
3. Testimonials
Adding client testimonials to your contract can build trust and credibility. Showcase positive feedback from past clients who were satisfied with your services. This simple addition reassures potential clients of your expertise and reliability.
Also Read: How to get bookkeeping clients with proven strategies
4. Scope of Services
This is particularly one of the most important areas of your contract. Clearly outline the services you will provide, such as transaction recording, account reconciliation, financial reporting, and tax preparation. For CPAs using outsourced bookkeeping for CPAs, it’s important to define the scope of work. Define the limits of your responsibilities to avoid confusion about what is and isn’t included.
5. Pricing
Transparency is key when discussing fees. Include your pricing structure—3 tier pricing strategy, whether it’s hourly, project-based, or on retainer. Specify additional costs, such as fees for extra services or adjustments for urgent work, to avoid surprises.
Also Read: How to package your bookkeeping services
6. Terms
State the duration of the contract and the conditions for renewal or termination. Include policies on early termination, the responsibilities of both parties and any provisions for amendments to the agreement.
7. Payment Instructions
Explain the payment process in detail. Mention accepted payment methods, due dates, invoicing schedules, and penalties for late payments. This ensures your client understands their financial obligations.
Also Read: About the various billing and invoicing software options
8. Signature
The signature section formalizes the agreement, showing that both parties accept the outlined terms. Ensure each party has a signed copy for reference.
Including these essential elements in your bookkeeping contract ensures clarity and legal protection, fostering a professional and trustworthy relationship with your clients.
Why Choose Cone?
Bookkeepers seek tools that are streamlined, comprehensive, and flexible to manage client relationships effectively. Cone's software is built to address these needs, offering features like task automation, deadline tracking, and client communication hubs—all designed specifically for bookkeeping professionals.
With its streamlined interface, Cone reduces manual effort, allowing you to focus on growing your business. Its comprehensive capabilities—from proposal to payment—ensure you never miss a step. Plus, its flexibility lets you customize tools to suit your workflow.
Pricing: Cone’s pricing starts at just $8 per user per month, making it affordable for bookkeepers at any stage of their career.
Start your Cone free trial today!