Bookkeeping services agreement

What it means

A bookkeeping services agreement is a contract between a company or sole trader and an external accountant or accounting firm that sets out which services will be provided, at what price, by which deadlines and who is responsible for what. It underpins any outsourced accounting arrangement and protects both sides from misunderstandings.

Legally it is usually concluded as a mandate contract under the Commercial Code or as an innominate service agreement. The agreement does not change the fact that, towards the state, the reporting entity, meaning the client, and its statutory body remain responsible for the books. The accountant is liable to the client under the contract.

A typical agreement describes the scope of services, such as double-entry bookkeeping, VAT, payroll, tax returns, annual financial statements or representation before authorities, and states what falls outside the flat fee. Deadlines for handing over documents, communication channels, personal data protection and termination also matter.

How it works in practice

The section on cooperation has the greatest practical weight. The agreement should set the day of the month by which the client hands over documents and statements, in what form, and what happens if they arrive late. If a client delivers invoices the day before the VAT return deadline, the accountant cannot bear full responsibility for errors or delays.

The price is set as a flat fee based on the number of documents, employees and the range of services, or as an hourly rate for extra work such as a tax audit or consolidation. A good agreement says how the flat fee changes as the number of documents grows and lists in advance the services billed separately, so the client is not surprised by an invoice.

The agreement should also address the accountant's liability for loss, such as a fine or late interest caused by their mistake, any cap on compensation, and the duty to hold professional indemnity insurance. Because the accountant processes personal data of the client and its employees, a data processing agreement forms part of it too.

What to watch out for

When the relationship ends, the accountant must return all accounting documentation, including electronic data and exports from the accounting software. The agreement should set the deadline and form of handover and the cooperation owed when switching to a new accountant, so the company is not left without books mid-year or just before closing.

Beware of agreements that only oblige the accountant to "keep the books" without further detail. In a dispute it is then unclear whether filing the tax return, dealing with authorities or checking VAT registration was part of the service. The more precise the scope, the less room for disputes about who should have done what.