Bookkeeping Service Agreement Sample

Bookkeeping Service Agreement Sample | Bestar

Singapore Bookkeeping Service Agreement Sample

A bookkeeping service agreement in Singapore is a crucial legal document that outlines the terms and conditions between a business (client) and a bookkeeping service provider. It helps prevent misunderstandings, defines responsibilities, and ensures compliance with Singaporean regulations.

Here's a sample outline of what a comprehensive bookkeeping service agreement in Singapore should typically include, along with explanations for each section:

BOOKKEEPING SERVICE AGREEMENT

This Bookkeeping Service Agreement ("Agreement") is entered into on this [Day] day of [Month], 2025 ("Effective Date"), by and between:

[CLIENT COMPANY NAME] (UEN: [Client UEN Number]), a company incorporated under the laws of Singapore and having its registered address at [Client Address] (hereinafter referred to as the "Client");

AND

BESTAR SERVICES PTE. LTD. (UEN: 201011130K), a private limited company incorporated under the laws of Singapore and having its registered address at 23 New Industrial Road, #04-08 Solstice Business Center, Singapore 536209 (hereinafter referred to as the "Accounting Firm").

The Client and the Accounting Firm are hereinafter collectively referred to as the "Parties" and individually as a "Party".

WHEREAS:

• The Client requires professional bookkeeping services for its business operations.

• The Accounting Firm possesses the necessary qualifications, experience, and resources to provide such services.

• The Parties desire to enter into this Agreement to define the terms and conditions under which the Accounting Firm will provide bookkeeping services to the Client.

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, the Parties agree as follows:

1. DEFINITIONS

• "Bookkeeping Services": The specific tasks and responsibilities to be performed by the Accountant as detailed in Schedule A.

• "Confidential Information": Any non-public information, whether oral or written, concerning the Client's business, finances, operations, or personal data.

• "Client Data": All financial records, documents, and information provided by the Client to the Accountant for the purpose of rendering the Bookkeeping Services.

• "Fees": The charges for the Bookkeeping Services as set out in Schedule B.

• "PDPA": The Personal Data Protection Act 2012 of Singapore, as amended from time to time.

• "SFRS": Singapore Financial Reporting Standards.

2. SCOPE OF SERVICES

2.1 The Accounting Firm agrees to provide the Bookkeeping Services to the Client as described in Schedule A attached hereto and incorporated by reference.

2.2 Any services not explicitly listed in Schedule A are excluded from this Agreement. If the Client requires additional services, a separate written agreement or addendum will be required, and additional fees may apply.

3. TERM AND TERMINATION

3.1 This Agreement shall commence on the Effective Date and shall continue for an initial period of one (1) year, monthly, indefinitely until terminated ("Initial Term"), unless terminated earlier in accordance with the provisions herein.

3.2 Upon expiration of the Initial Term, this Agreement shall automatically renew for successive one (1) year periods unless either Party provides written notice of non-renewal to the other Party at least thirty (30) days prior to the end of the then-current term.

3.3 Either Party may terminate this Agreement:

a) By providing thirty (30) days' prior written notice to the other Party.

b) Immediately upon written notice if the other Party commits a material breach of this Agreement and fails to remedy such breach within fourteen (14) days of receiving written notice thereof.

c) Immediately if the other Party becomes insolvent, files for bankruptcy, or goes into liquidation.

3.4 Upon termination of this Agreement for any reason:

a) The Client shall pay the Accounting Firm for all Bookkeeping Services rendered up to the effective date of termination.

b) The Accounting Firm shall return all Client Data and relevant documents to the Client within seven (7) business days.

c) All provisions relating to confidentiality, data protection, and limitation of liability shall survive the termination of this Agreement.

4. FEES AND PAYMENT

4.1 The Client agrees to pay the Accountant the Fees as set out in Schedule B attached hereto.

4.2 Invoices will be issued monthly and are due and payable within fourteen (14) days from the invoice date.

4.3 All Fees are exclusive of Goods and Services Tax (GST), unless otherwise stated. GST will be added to invoices at the prevailing rate, where applicable.

4.4 A late payment fee of 1% per month may be charged on overdue amounts.

5. CLIENT OBLIGATIONS

5.1 The Client shall provide the Accounting Firm with all necessary and accurate financial records, documents, and information in a timely manner to enable the Accounting Firm to perform the Bookkeeping Services.

5.2 The Client acknowledges that the accuracy and completeness of the financial information provided are solely the responsibility of the Client. The Accounting Firm shall not be held liable for any inaccuracies or omissions resulting from incomplete or inaccurate information provided by the Client.

5.3 The Client shall designate a primary contact person for all communications with the Accountant.

6. ACCOUNTING FIRM OBLIGATIONS

6.1 The Accounting Firm shall perform the Bookkeeping Services with professional competence, due care, and in accordance with generally accepted accounting practices and relevant Singaporean laws and regulations (e.g., Companies Act, Income Tax Act, GST Act, PDPA).

6.2 The Accounting Firm shall maintain strict confidentiality of all Client Data and Confidential Information, not disclosing it to any third party without the Client's prior written consent, except as required by law.

6.3 The Accounting Firm shall implement appropriate technical and organizational measures to protect Client Data from unauthorized access, loss, or disclosure, in compliance with the PDPA.

7. CONFIDENTIALITY

7.1 Both Parties agree that any Confidential Information disclosed by one Party to the other during the course of this Agreement shall be kept strictly confidential.

7.2 Neither Party shall use the other Party's Confidential Information for any purpose other than as necessary to perform its obligations under this Agreement.

7.3 This confidentiality obligation shall survive the termination of this Agreement.

8. DATA PROTECTION

8.1 The Accounting Firm acknowledges its obligations under the PDPA with respect to any personal data processed on behalf of the Client.

8.2 The Accounting Firm shall process Client Data only for the purposes of providing the Bookkeeping Services and in accordance with the Client's instructions.

8.3 The Accounting Firm shall notify the Client without undue delay upon becoming aware of any personal data breach relating to Client Data.

9. LIMITATION OF LIABILITY AND INDEMNIFICATION

9.1 The Accounting Firm's total liability arising out of or in connection with this Agreement, whether in contract, tort (including negligence), or otherwise, shall be limited to the total Fees paid by the Client to the Accounting Firm for the twelve (12) months preceding the event giving rise to the claim.

9.2 The Accounting Firm shall not be liable for any indirect, incidental, special, consequential, or punitive damages, including but not limited to loss of profits, data, or business opportunities.

9.3 The Client agrees to indemnify and hold harmless the Accounting Firm from and against any claims, losses, damages, liabilities, costs, and expenses (including reasonable legal fees) arising from the Client's breach of this Agreement, or from the inaccuracy or incompleteness of information provided by the Client.

10. GOVERNING LAW AND DISPUTE RESOLUTION

10.1 This Agreement shall be governed by and construed in accordance with the laws of Singapore.

10.2 Any dispute arising out of or in connection with this Agreement, including any question regarding its existence, validity, or termination, shall be referred to and finally resolved by arbitration in Singapore in accordance with the Arbitration Rules of the Singapore International Arbitration Centre ("SIAC Rules") for the time being in force, which rules are deemed to be incorporated by reference in this clause. The Tribunal shall consist of one (1) arbitrator. The language of the arbitration shall be English.

11. ENTIRE AGREEMENT

11.1 This Agreement, including its Schedules, constitutes the entire agreement between the Parties with respect to the subject matter hereof and supersedes all prior discussions, negotiations, and agreements, whether oral or written.

12. AMENDMENTS

12.1 No amendment, modification, or waiver of any provision of this Agreement shall be effective unless it is in writing and signed by duly authorized representatives of both Parties.

13. SEVERABILITY

13.1 If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.

14. NOTICES

14.1 All notices required or permitted under this Agreement shall be in writing and delivered by [e.g., hand, registered mail, email] to the addresses specified above or to such other address as a Party may designate by written notice to the other Party.

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date.

FOR THE CLIENT:

[Authorized Signatory Name]

[Title]

FOR THE ACCOUNTING FIRM:

[Authorized Signatory Name]

CEO

SCHEDULE A: SCOPE OF BOOKKEEPING SERVICES

The Accounting Firm agrees to provide the following bookkeeping services to the Client:

1. Data Entry & Transaction Recording:

   • Recording of all financial transactions (sales, purchases, receipts, payments).

   • Categorization of expenses and income.

   • Entry of bank statements and credit card statements.

   • Processing of petty cash transactions.

2. Bank Reconciliation:

   • Monthly reconciliation of all bank accounts and credit card accounts.

3. Accounts Payable Management:

   • Processing vendor invoices and entering them into the accounting system.

   • Assisting with preparing payment runs (Client's approval required for actual payments).

4. Accounts Receivable Management:

   • Recording customer invoices and payments.

   • Assisting with tracking outstanding receivables (does not include debt collection).

5. General Ledger Maintenance:

   • Maintaining and updating the general ledger.

6. Financial Reporting (Basic):

   • Preparation of monthly/quarterly management reports, including:

     • Profit & Loss Statement

     • Balance Sheet

     • Trial Balance

   • (Note: Does not include complex financial analysis or financial statement preparation for audit purposes unless explicitly agreed upon).

7. GST Preparation (if applicable):

   • Preparation of quarterly GST returns based on provided information (Client's responsibility for timely submission and payment to IRAS).

8. Record Keeping:

   • Maintaining proper electronic or physical records of all financial transactions and documents.

Frequency of Services: [e.g., Monthly, Quarterly, As per client's requirements]

Client's Accounting Software: Xero, QuickBooks, MYOB, SAP, Manual System

Excluded Services:

• Tax advisory or tax filing (beyond GST preparation).

• Audit or assurance services.

• Company secretarial services.

• Payroll processing (unless specified and priced separately).

• Forensic accounting.

• Investment advice.

SCHEDULE B: FEES AND PAYMENT TERMS

1. Fee Structure:

• Option 1: Fixed Monthly Retainer

  • For the services outlined in Schedule A, the Client shall pay a fixed monthly retainer of SGD [Amount] per month.

• Option 2: Hourly Rate

  • Bookkeeping Services will be charged at an hourly rate of SGD [Amount] per hour.

  • Estimated monthly hours: [Number] hours. (This is an estimate and not a guarantee).

• Option 3: Per Transaction / Volume Based

  • E.g., SGD [Amount] per [number] transactions, SGD [Amount] per bank reconciliation. (Provide a detailed breakdown based on client's specific needs).

2. Additional Services:

• Any services requested by the Client outside the scope defined in Schedule A will be quoted separately and charged at an agreed-upon hourly rate of SGD [Amount] or a fixed project fee.

3. Payment Schedule:

• Invoices will be issued on the 1st day of each month/quarter for the services rendered in the preceding period.

• Payment is due within 14 days from the invoice date.

4. Late Payment:

• Payments not received by the due date may be subject to a late payment charge of 1% per month on the outstanding balance.

5. Disbursements/Reimbursable Expenses:

• Any out-of-pocket expenses incurred by the Accounting Firm on behalf of the Client (e.g., software subscriptions, courier fees, printing costs) will be reimbursed by the Client upon presentation of valid receipts. Such expenses must be pre-approved by the Client if they exceed SGD [Amount].

Important Considerations when drafting the agreement for Singapore:

• Singapore Companies Act: Ensure the agreement aligns with requirements for record-keeping.

• Income Tax Act & GST Act: The agreement should clarify responsibilities regarding tax information and GST.

• Personal Data Protection Act (PDPA): Explicitly address data protection, confidentiality, and how personal data will be handled, stored, and protected.

• Professional Standards: While not always legally binding, mentioning adherence to professional accounting/bookkeeping standards (e.g., SFRS) adds credibility.

• Dispute Resolution: Arbitration (e.g., SIAC) is a common and often preferred method for commercial disputes in Singapore, offering a more private and potentially faster resolution than court litigation.

How Bestar can Help

Bestar offers a wide range of benefits to businesses, especially small and medium-sized enterprises (SMEs), by handling the crucial task of managing financial records. Here's how we can significantly help a business:

1. Ensuring Accuracy and Compliance:

   
   

   • Accurate Records: Bestar systematically records all financial transactions (sales, purchases, receipts, payments). This meticulous attention to detail ensures that your financial records are accurate and complete, which is fundamental for sound financial management.

   • Regulatory Compliance: We stay updated with the latest Singaporean accounting standards (SFRS), tax laws (Income Tax Act, GST Act), and regulatory requirements set by ACRA (Accounting and Corporate Regulatory Authority). This minimizes the risk of errors, penalties, and fines due to non-compliance.

   • Proper Documentation: We help organize and maintain all necessary financial documents, such as invoices, receipts, and bank statements, which are crucial for audits and tax filings.

     
     

2. Saving Time and Resources:

   
   

   • Focus on Core Business: By offloading time-consuming bookkeeping tasks, business owners and their internal teams can dedicate more time and energy to core business activities like strategy, sales, product development, and customer relations.

   • Cost Savings: Hiring an in-house bookkeeper involves significant costs (salary, benefits, training, office space, software, equipment). Outsourcing bookkeeping services can be more cost-effective as you typically pay for services rendered, often at a lower overall cost.

   • Increased Efficiency: Bestar uses specialized accounting software and streamlined processes, leading to faster and more efficient processing of financial data.

     
     

3. Providing Financial Clarity and Insights:

   
   

   • Real-time Financial Data: With advanced software and automated processes, Bestar can offer real-time updates on your financial position.

   • Key Financial Reports: We prepare essential financial statements such as Profit & Loss Statements, Balance Sheets, and Cash Flow Statements. These reports provide a clear overview of the company's financial health.

   • Informed Decision-Making: Access to accurate and timely financial data allows business owners to make better-informed decisions regarding budgeting, resource allocation, pricing strategies, and identifying areas for cost reduction or revenue growth.

   • Cash Flow Management: We help track cash inflows and outflows, identify patterns, anticipate potential shortfalls, and implement strategies to improve cash flow consistency. This includes managing accounts receivable (invoicing and payment tracking) and accounts payable (processing vendor invoices and payment runs).

     
     

4. Support for Tax and Audit Preparedness:

   
   

   • Streamlined Tax Filing: Bestar organizes financial data in a tax-compliant manner, making the preparation of GST returns and corporate tax filings much easier and less stressful. We can also help identify eligible tax deductions.

   • Audit Readiness: Well-maintained and organized financial records ensure a smoother and quicker audit process, which is beneficial for businesses that require statutory or voluntary audits.

     
     

5. Access to Expertise and Technology:

   
   

   • Skilled Professionals: Outsourcing provides access to a team of experienced professionals who are well-versed in accounting principles and local regulations.

   • Latest Software: Bestar invests in and utilizes cutting-edge accounting software and tools (e.g., Xero, QuickBooks, MYOB), allowing businesses to leverage advanced technology without the need for additional investment or training.

   • Risk Mitigation: Bestar can help identify and prevent financial irregularities or potential fraud, enhancing data security and ensuring consistent financial practices.

     
     

6. Scalability and Flexibility:

   
   

   • Adaptable Services: As a business grows or experiences fluctuating transaction volumes, outsourced bookkeeping services can easily scale up or down to match changing needs without the logistical challenges of hiring or downsizing an in-house team. This flexibility is invaluable for startups and businesses in different growth stages.

In essence, Bestar acts as a vital financial partner, enabling businesses to maintain healthy financial records, ensure compliance, gain valuable insights, and ultimately focus on their core operations and strategic growth.

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