Bookkeeping Contract Template

A Bookkeeping Contract is a contract between the bookkeeper and a client to provide financial services. 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.

Why Use

• Reduces the parties’ agreements to writing to set clear expectations.
• Creates a legally enforceable agreement in case either party breaches the contract.
• Establishes the bookkeeper’s hourly rate or salary.
• Provides proof of the bookkeeper/client relationship.
  

What Does the Bookkeeper Do?

A bookkeeper is a person who records and maintains financial records for their client. They typically maintain receipts, payments, sales records, purchase records, and other financial data and manage bill payments or payroll for a business.

A professional bookkeeper manages financial records, but their specific tasks vary widely depending on their individual job. Bookkeepers may be asked to do any or all of the following:

• Create customized reports
• Handle accounts payable and accounts receivable
• Perform bank and account reconciliation
• Pay bills or invoices
• Design or create financial statements
• Manage payroll and check registers
• Perform general bookkeeping tasks
• Prepare budgets

In some cases, a bookkeeper for a business is also an accountant. This is especially common for large companies, and when this happens, a bookkeeper’s duties may expand even further.

Bookkeepers vs. Accountants

A bookkeeper is different than an accountant. Here’s a breakdown of the key differences between bookkeepers and accountants:

Function

• Bookkeepers: The detail-oriented backbone of a company’s financial recordkeeping. Their role is focused on data management.
• Accountants: Financial experts who go beyond recording transactions. They have the legal authority to offer financial advice.

Tasks

• Bookkeepers: Track financial transactions, including receipts, payments, sales, and purchases. They may also manage bill payments and payroll.
• Accountants: Analyze financial data, identify trends, and provide valuable insights and recommendations. They can also offer guidance on tax strategies, financial planning, and business decisions.

TIP

Having a formal contract in place with your accountant is crucial to outlining the scope of services and fees. You can find a sample accountant contract template here to get you started.

Qualifications

• Bookkeepers: While formal licensing isn’t mandatory, many bookkeepers hold an associate’s degree in finance or a bookkeeping certification. This ensures they possess the necessary skills to handle financial data accurately and efficiently.
• Accountants: Accountants typically hold a bachelor’s degree in accounting, and many become Certified Public Accountants (CPAs). The CPA designation signifies expertise and adherence to strict ethical standards.

Salary & Hourly Rate

Many different factors impact a bookkeeper’s salary and hourly rate. These can include:

• The bookkeeper’s experience
• Whether the bookkeeper has a college degree or any certifications
• Whether the bookkeeper is also an accountant or CPA
• The bookkeeper’s geographical location
• Whether the bookkeeper is an independent contractor or works for a large company

According to the Bureau of Labor and Statistics , the national average for bookkeepers is $21.90 per hour and $45,560 per year.

If you’re considering hiring a freelance bookkeeper, it’s important to establish a clear agreement on services and fees. A well-defined invoice template can help ensure both you and the bookkeeper are on the same page regarding payment terms and deliverables.