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 Is a Bookkeeper?
A bookkeeper is a person who records and maintains financial records for their client. This is often a business or company, but it may also be for an individual client. Bookkeepers typically maintain receipts, payments, sales records, purchase records, and other financial data. They may even manage bill payments or payroll for a business.
Bookkeepers do not require licensing for their job. However, many bookkeepers have an associate’s degree in finance or a bookkeeping certification. This training helps ensure they are qualified for the job and can do it well.
A bookkeeper is different than an accountant. Bookkeepers manage financial records, but accountants are legally permitted to analyze and provide advice about those records. Accountants typically have a bachelor’s degree in accounting, and many are certified public accountants (CPAs). Bookkeepers are more limited in what they are allowed to do and typically make less than accountants.
Services Provided
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. When this happens, a bookkeeper’s duties may expand even further.
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.
Bookkeeping Contract Sample
Below, you can download our bookkeeping contract template in PDF or Word format:
