Bookkeeping Engagement Letter Template

This Bookkeeping Engagement Letter (the “Agreement”) is entered into as of [Effective Date] by and between:

Client: [Client Legal Name], address: [Address] (“Client”)
Bookkeeper/Firm: [Provider Legal Name], address: [Address] (“Provider”)

Business Name (If Different): [DBA]
Primary Contact: [Name/Email/Phone]
Accounting Period Covered: ☐ ongoing monthly services ☐ project/backlog cleanup for [Months/Years].

1. Scope of Services

1.1 Provider will provide bookkeeping services described below (the “Services”):

• monthly transaction categorization and coding

• bank and credit card reconciliations

• accounts payable tracking (optional): ☐ included ☐ excluded

• accounts receivable tracking (optional): ☐ included ☐ excluded

• payroll coordination (optional): ☐ included ☐ excluded (provider: [__])

• monthly financial reports (optional): ☐ P&L ☐ balance sheet ☐ cash flow ☐ other: [__]

• sales tax tracking (optional): ☐ included ☐ excluded

• year-end close support (optional): ☐ included ☐ excluded

• other: [List]

1.2 Provider is not providing: tax preparation, audit/review services, legal advice, or investment advice, unless separately agreed in writing.

2. Client Responsibilities

2.1 Client will provide timely and accurate information, including:

• bank/credit card access or statements

• invoices, receipts, and expense details

• payroll reports (if applicable)

• loan statements and interest schedules

• sales tax filings (if applicable)

• any changes to business operations that affect bookkeeping

2.2 Document delivery deadline each month: by the [__] day of the following month (customize).
2.3 Client is responsible for final approval of books and for maintaining original source documents.

3. Systems and Access

3.1 Accounting software: [QuickBooks Online/Xero/etc.].
3.2 Supporting tools (optional): [Bill.com, Gusto, Stripe, Shopify, Expensify, etc.].
3.3 Provider access method: ☐ invite as user ☐ client shares reports ☐ other: [__].
3.4 Client will maintain admin access and credentials (Provider will not be sole account owner).

4. Deliverables and Timeline

4.1 Standard monthly deliverables (if included): reconciliations + reports delivered by [__] day each month, assuming Client submits documents on time.
4.2 If Client submits documents late, deadlines may shift accordingly.

5. Fees and Payment

5.1 Fee model (select):
☐ Monthly fixed fee: $[Amount]/month
☐ Hourly: $[Rate]/hour (estimate: [] hours/month)
☐ Cleanup project fee: $[Amount] for period []
☐ Other: [Describe]

5.2 Invoicing: ☐ monthly in advance ☐ monthly in arrears ☐ per milestone.
5.3 Payment terms: Net [] days.
5.4 Late fees (optional): [].
5.5 Out-of-scope work requires approval and is billed at: $[Rate]/hour or quoted fee.

6. Corrections, Adjustments, and Limits

6.1 Provider will use reasonable care but relies on information provided by Client and third parties.
6.2 Provider is not responsible for errors caused by incomplete or inaccurate Client information.
6.3 If corrections are needed due to Client changes or late information, additional fees may apply.

7. Confidentiality and Data Security

7.1 Provider will keep Client information confidential and use it only to perform Services.
7.2 Provider will use reasonable security practices to protect access and data.
7.3 Client authorizes Provider to access accounts only as necessary for Services.

8. Term and Termination

8.1 Term begins on the Effective Date and continues: ☐ month-to-month ☐ through [End Date] ☐ until completion of cleanup period.
8.2 Either party may terminate with [__] days’ written notice.
8.3 Upon termination, Client will pay for Services performed through the termination date.

9. Limitation of Liability (Optional)

9.1 Consequential damages: ☐ excluded ☐ not excluded.
9.2 Liability cap: ☐ none ☐ $[Amount] ☐ fees paid in last [__] months.

10. Governing Law

10.1 This Agreement is governed by the laws of [State/Country].

Signatures

Client: [Client Legal Name]
Name/Title: [Authorized Signer]
Date: [Date]
Signature: ___________________________

Provider: [Provider Legal Name]
Name/Title: [Authorized Signer]
Date: [Date]
Signature: ___________________________