Accounting Contract Template
Download a free accounting contract template as an editable Word file or a printable PDF. It covers services, fees, term and confidentiality, so you can protect your practice while you grow your client list.
Free Accounting Contract Template for Download
We’ve worked with legal advisors and proofreaders to create this accounting contract template. Fill it in on screen, or print the PDF as a blank copy and complete it by hand. It works as a simple accounting services agreement for solo accountants and small firms.
What this template includes
- • List of services
- • Contract length
- • Confidentiality terms
Click below to download our accounting contract sample.
What is an accounting contract?
Accountants are highly qualified professionals who help individuals and businesses meet their tax obligations, improve financial processes and offer advice.
Being an accountant comes with a massive responsibility as clients across all industries depend on their expertise to improve their financial situation and remain compliant with government authorities.
An accounting contract is a written agreement between an accountant and a client that sets out the services, fees, timeline and confidentiality terms for the work. It’s also called an accounting services agreement, and it fits bookkeeping, payroll and tax preparation engagements. Accountants use it with each new client, and a business owner hiring an accountant can ask for one to put the scope and price in writing.
DISCLAIMER: We are not lawyers or a law firm and we do not provide legal, business or tax advice. We recommend you consult a lawyer or other appropriate professional before using any templates or agreements from this website.
Get access to our Accounting
Contract Template Sample
We’ve created a simple template to save you time and money when it comes to managing client relationships.
Our document is entirely free and editable to suit your needs.
Click below to grab a copy of our accounting agreement sample.
Why an accounting contract agreement is important for accountants
Accounting requires incredible attention to detail, access to client records and acute knowledge of taxation law. If accounting services are mismanaged or inaccurate, it could cost clients thousands, sometimes hundreds of thousands of dollars to fix.
Accountants are trusted advisors with access to sensitive financial information, so a breach of privacy or professional conduct can seriously harm everyone involved.
An accounting agreement offers protection for clients and accountants when it comes to financial compliance and advice. A formal contract aims to hold all parties accountable to maintain accurate and up to date financial records.
Best practices when using an accounting contract
We’ve designed an accounting agreement template that’s straightforward to use for any practitioner. Three best practices help you get the most out of it when you work with clients.
1. Be specific with your offerings
Balance sheets and profit and loss statements are based on universal accounting principles. But while the foundations are the same, each client presents a unique set of requirements depending on their situation.
So even before you can present your offerings on a contract, you need to conduct a client assessment to understand what services are necessary to help your clients reach their goals.
See if you can access client spreadsheets, accounting systems or paper records to get an idea of how much work is involved.
In addition to an assessment, interview your client to understand their workflows and objectives. Below are some questions to help get you to get started:
- • Are you the sole owner of your investment property?
- • Does your business have payroll?
- • What type of business entity do you have?
- • Have you worked with an accountant before? If so, what was the experience like?
- • Are your taxes up to date?
- • How does your business make money?
- • Have you sold any investments in the last year?
- • Do you use accounting software? If so, what do you use?
Once you’ve interviewed your client and assessed their books, you’re in a position to list all of your relevant services in your accounting contract template.
2. Determine the length of your accounting contract
The main objective of your accounting business is to secure ongoing client work, enabling you to grow and scale your practice.
However, with new client engagements, it may take some time to build trust and loyalty. For this reason, it’s a good idea to include an end date in your accounting services contract. Work with your client to select a time that makes sense, for instance after a tax office cut-off date or after an auditing period.
With an end date, you and your clients know you have a set period to see if the relationship is going to work. This is sensible as it gives parties an out if things don’t go as planned.
Alternatively, if everyone is happy with the work leading up to the end date, you can consider presenting an agreement with ongoing work.
3. Set expectations for how you want to be paid
Like any service provider, an accountant can choose to charge a fixed rate or by the hour. As accounting needs change depending on the type of work that needs to be done, we suggest you start by charging an hourly rate.
Hourly rates are common in accounting, as many firms track time for every advisor to bill clients accurately.
The simplest way to charge clients is to provide an invoice at the end of each month with the hours your firm worked.
We also recommend a late fee for overdue invoices, written into the contract terms. A late fee reduces late payments and improves your cash flow, and our template leaves the amount blank so you can set it yourself.
What should an accounting contract include?
An accounting contract should name both parties, list the services, set the fees and payment dates, state the term, protect confidential information and explain how either side can end the agreement. Our template covers each of these in 17 short sections, so you only fill in the blanks.
- Parties and services: the accountant, the client and up to ten numbered service lines.
- Term: the agreement starts on signing and ends on a date you choose, with no automatic renewal.
- Compensation: an hourly rate invoiced monthly, plus a late fee if an invoice stays unpaid for thirty days.
- Work ownership and relationship: the client owns the reports and documents you create, and you work as an independent contractor, not an employee.
- Confidentiality and audit: you keep the client’s information private, also for a set number of years after the agreement ends, and maintain full records for inspection.
- Representations and liability: you follow the ethics standards of the International Ethics Standards Board for Accountants, and the contract limits liability for indirect and punitive damages.
- Termination: either side can end the agreement immediately after a breach or by written notice, and you return the client’s materials within thirty days.
- Dispute resolution, governing law and amendments: how disagreements get settled, which law applies and how changes get signed.
The audit section leaves the record keeping period to whatever the law requires. For tax returns, a federal rule requires a signing tax return preparer to keep a copy or record of each return for three years after the close of the return period in which it was presented to the client for signature (26 CFR 1.6107-1). Other services can carry different retention rules, so check the ones that apply to your work.
The template doesn’t include a clause on client duties, such as delivering bank statements and records on time. If you want one, add it to the Word file before signing and have a lawyer review the wording. For stricter confidentiality terms, pair the contract with our non-disclosure agreement template.
Which services and fee model should you put in the contract?
List every service you’ll provide, such as bookkeeping, payroll, tax preparation or financial statements, and choose between an hourly rate, a monthly retainer and a fixed project fee before you send the contract. Write each service as one line with its frequency and deliverable, for example “Monthly bank and credit card reconciliation” or “Annual business tax return preparation,” so nothing is left to assumption. The three fee models fit different kinds of work.
- Hourly rate: you bill the hours worked each month. Our template uses this model, and it suits work that changes from month to month.
- Monthly retainer: the client pays a set amount each month for a defined list of recurring services, which suits ongoing bookkeeping.
- Fixed project fee: one price for a one-off job, such as a cleanup of old books or a year-end filing.
If you prefer a retainer or a fixed fee, edit the Compensation section in the Word file and have a lawyer check the change. Work the client adds later belongs in a written amendment signed by both parties, which the template requires for every change. For a bookkeeping-only engagement, see our book-keeping contract agreement template.
How do you fill out and sign an accounting contract?
To fill out the accounting contract template, download the Word or PDF file, complete the blank lines and review the terms with your client before anyone signs. Use the Word file to type your details, or print the PDF as a blank copy and write them in by hand.
- Enter the effective date and the names and addresses of the accountant and the client.
- List the services on the numbered lines.
- Set the end date, the hourly rate, the late fee and the number of days’ notice for termination.
- Enter how many years the confidentiality duty lasts after the agreement ends.
- Choose the dispute resolution method and the governing law.
- Go through the finished contract with your client, then both of you sign and date it.
Signing comes last, and both parties should sign and date the contract before work starts. You can sign on paper or electronically. Under the federal ESIGN Act, a signature or contract for a transaction in interstate or foreign commerce can’t be denied legal effect solely because it’s in electronic form (15 U.S.C. 7001). Our guide to electronic signature legality explains when that applies, and you can upload the finished contract to Signaturely to send it to your client for signature. Keep a signed copy for each party, and have a lawyer review the contract if the engagement is complex or you change the clauses.
Get access to our Accounting
Contract Template Forms
Use the Word file to add your services and rates, or print the PDF as a blank copy.
Both files are free to download and contain the same 17 sections.
Click below to download the accounting contract form.
Frequently Asked Questions
FAQ about Accounting Contracts
An accounting agreement letter, also known as an engagement letter, is effectively a shortened and abbreviated contract summarising accounting services and compensation.
Using an accounting engagement letter is common practice in the industry when liaising with new clients.
An accounting contract conversely, is a formal agreement that requires a signature from both the accountant and client.
Accountants use a combination of a letter and a contract depending on what they’re used to doing.
We recommend you use both when engaging with new clients, as the letter is a simple document to interpret while the contract provides legal proof of the commitments each party has made.
Using an accounting engagement letter is common practice in the industry when liaising with new clients.
An accounting contract conversely, is a formal agreement that requires a signature from both the accountant and client.
Accountants use a combination of a letter and a contract depending on what they’re used to doing.
We recommend you use both when engaging with new clients, as the letter is a simple document to interpret while the contract provides legal proof of the commitments each party has made.
We all want every client project to run smoothly. However, it’s not always the case. Sometimes you get an unreasonable client or, even worse, a lawsuit.
A contract protects you against those situations and gives you a reference document to be accountable to.
So while it’s not a requirement to have an accounting contract, it’s a good idea to have one.
A contract protects you against those situations and gives you a reference document to be accountable to.
So while it’s not a requirement to have an accounting contract, it’s a good idea to have one.
We acknowledge that you may need to adjust your accounting contract depending on the needs of your clients. That’s why we’ve made our template available in Word so you can make changes as needed.
However, if you intend to make significant modifications, we advise you to consult with a lawyer for compliance.
However, if you intend to make significant modifications, we advise you to consult with a lawyer for compliance.
document preview
Accounting Contract
Accounting Contract
Parties
– This Accounting Agreement (hereinafter referred to as the “Agreement”) is entered into on ______________ (the “Effective Date”), by and between __________________________, with an address of ______________ (hereinafter referred to as the “Accountant”) and ______________ with an address of ______________ (hereinafter referred to as the “Client”) (collectively referred to as the “Parties”).
Accounting Services
Hereafter, the accounting services that the Client requests from the Accountant and the ones that the Accountant agrees to perform are enlisted below:
- _______________________________________
- _______________________________________
- _______________________________________
- _______________________________________
- _______________________________________
- _______________________________________
- _______________________________________
- _______________________________________
- _______________________________________
- _______________________________________
Term
– This Agreement shall be effective on the date of signing this Agreement (hereinafter referred to as the “Effective Date”) and will end on ______________.
– Upon the end of the term of the Agreement, this Agreement will not be automatically renewed for a new term.
Compensation
– Hereby, the Parties agree that the Accountant will be paid by invoicing the Client per month for the services he/she provides to the Client.
– The services performed by the Accountant cost ______________ per hour.
– The Parties agree that in case the invoices are not paid within thirty days upon receiving them, the Accountant will be entitled to charge a late fee of ______________.
Work Ownership
– The Parties agree that the work created by the Accountant for the Client, including but not limited to, reports, documents and presentations (electronic/ physical) during the term of this Agreement will be solely owned by the Client.
– Hereby, the Accountant agrees that he/she has no rights over this work and will turn or destroy the work product upon the conclusion of this Agreement as per the instructions of the Client.
Relationship Between Parties
– Hereby, the Parties agree that the Accountant in this Agreement is an independent contractor, and the Accountant will provide the services hereunder and will act as an independent contractor.
– Under no circumstances shall the Accountant be considered an employee.
– Whereas, this Agreement does not create any other partnership between the Parties.
Confidentiality
– All terms and conditions of this Agreement and any materials provided during the term of the Agreement must be kept confidential by the Accountant, unless the disclosure is required pursuant to process of law.
– The Accountant will not be entitled to use any information provided to him/her even after the conclusion of the Agreement for a period of ______________ years.
– Disclosing or using this information for any purpose beyond the scope of this Agreement, or beyond the exceptions set forth above, is expressly forbidden without the prior consent of the Client.
– This section will remain in force regardless of the fact in case the Agreement is terminated.
Audit
– Hereby, the Accountant agrees that he/she will maintain full records of all the business conducted that is relevant to the services in this Agreement and the Agreement itself.
– The records in the possession of the Accountant will be available for full inspection and audit by the Client and governmental entities for the period as per the requirement by law.
Representation And Warranties
– Hereby, the Parties declare that they both are authorized to enter into this Agreement fully, whereas the Accountant is to perform the accounting services in accordance with the ethics standards set forth by the International Ethics Standards Board for Accountants.
– All analysis, records, reports, and filings will be performed in compliance with the law.
Limitation Of Liability
– Under no circumstances will either party be liable for any indirect, special, consequential, or punitive damages (including lost profits) arising out of or relating to this Agreement or the transactions it contemplates (whether for breach of contract, tort, negligence, or other form of action) in case such is not related to the direct result of one of the party’s negligence or breach.
Termination
– This Agreement may be terminated in case the following occurs:
- Immediately in case one of the Parties breaches this Agreement.
- At any given time by providing a written notice to the other party ______________ days prior to terminating the Agreement.
– Upon termination, the Accountant is required to return all Client content, materials, and all Work Product to the Client at his/her earliest convenience, but in no event beyond thirty (30) days after the date of termination.
Dispute Resolution
– Any dispute or difference whatsoever arising out of or in connection with this Agreement shall be submitted to ______________ (Arbitration/mediation/negotiation) in accordance with, and subject to the laws of ______________.
Governing Law
– This Agreement shall be governed by and construed in accordance with the laws of ______________.
Severability
– In an event where any provision of this Agreement is found to be void and unenforceable by a court of competent jurisdiction, then the remaining provisions will remain to be enforced in accordance with the Parties’ intention.
Entire Agreement
– This Agreement contains the entire Agreement and understanding among the Parties hereto with respect to the subject matter hereof, and supersedes all prior agreements, understandings, inducements and conditions, express or implied, oral or written, of any nature whatsoever with respect to the subject matter hereof. The express terms hereof control and supersede any course of performance and/or usage of the trade inconsistent with any of the terms hereof.
Amendments
– The Parties agree that any amendments made to this Agreement must be in writing where they must be signed by both Parties to this Agreement.
– As such, any amendments made by the Parties will be applied to this Agreement.
Signature And Date
– The Parties hereby agree to the terms and conditions set forth in this Agreement and such is demonstrated throughout by their signatures below:
Client
Name: ______________________
Signature: ___________________
Date: _______________________
Accountant
Name: ______________________
Signature: ___________________
Date: _______________________
Related Proposals and Templates
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