Terms and conditions for a bookkeeping business

A bookkeeper's work is only as good and as timely as the information the client sends, and the client will blame the bookkeeper for the consequences of sending it late. The terms have to define what is included, make the records and the deadlines the client's responsibility, say who bears penalties, deal with data and software, and provide for a clean handover when the engagement ends. I draft those terms for a fixed fee of £995, delivered in five working days.

Who this is for

Bookkeepers, bookkeeping practices and outsourced finance teams in England and Wales working for small business clients on monthly engagements, as a sole practitioner or a small firm. These are business-client terms and do not cover tax or accountancy advice, which fall under your own professional obligations.

What matters in bookkeeping terms

Scope and what is not included

The terms should list the services included (recording transactions, reconciliations, sales and purchase ledgers, submissions you prepare on the client's behalf, management reports) and what is not, such as audit, tax advice, statutory accounts or anything reserved to another professional, so that the client's expectations match the fee. Additional work should be chargeable at a stated rate with the client's agreement.

The client's records, deadlines and penalties

The terms should make the client responsible for providing complete and accurate records by stated dates each period, for the accuracy of the information, and for approving submissions before they are made. Where the client provides information late or incomplete, the terms should say that deadlines move, that additional work is chargeable, and that penalties, interest and consequences of late or wrong submissions caused by the client's information are the client's. That clause is central to the document.

Identification, authority and reliance

Bookkeepers have their own obligations under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 to identify clients before acting, and the terms should say that work starts once identification is complete and that the client will provide what is needed. The terms should also state that reports are prepared from the client's records without audit or verification and are for the client's management use, not for reliance by lenders or third parties unless agreed.

Data, software and confidentiality

The bookkeeper processes the client's financial and personal data, including supplier and employee details, and the terms should say that the bookkeeper is a processor under the UK GDPR and the Data Protection Act 2018 for that data with the mandatory processor provisions in the terms, how records are stored and for how long, and that software subscriptions are either the client's own or provided by the bookkeeper as stated. Confidentiality should cover everything seen in the course of the work.

Fees, liability, termination and handover

Fees are monthly, invoiced in advance or on completion of each period, with interest and fixed compensation on late payment under the Late Payment of Commercial Debts (Interest) Act 1998 and a right to suspend. Liability should be capped at a figure matching your professional indemnity insurance, with consequential loss excluded and losses caused by the client's information excluded expressly, tested for reasonableness under the Unfair Contract Terms Act 1977. On termination, records and access are handed over within a stated period once fees are paid, and the terms should say what the bookkeeper retains.

What it costs

Customer or supplier terms and conditions, £995. One set of terms, customer-facing or supplier-facing, drafted for your business. Five working days.

Review of your existing terms, £495. You already have terms and want them checked and brought up to date. Returned marked up with my amendments and an explanation of the changes. Three working days.

Email me at geoffrey@caesar.co.uk with what you need and any documents, and I will confirm the scope and the fee in writing, usually the same working day.

What you get

• A full set of bespoke terms drafted for your business, reflecting the legal requirements that apply to your business and sector
• A note in plain English explaining the terms I have drafted for you
• Liability, payment, termination and IP provisions that protect your position and are drafted to withstand scrutiny from the other side
• Guidance on how to incorporate the terms properly
• Your questions and comments answered by email or phone
• One round of amendments to finalise the terms ready for use

What is not included

• Negotiating your terms with individual customers (I am happy to quote for this as an additional service if required)
• Sector-specific regulatory compliance beyond the contract terms themselves
• Website privacy notice and cookie compliance, which I quote separately
• Terms governed by the law of another country
• Tax advice

Questions I am often asked

The client sent their records late and was fined. They say it is our fault. Is it?

If the terms set dates for the client to provide records, say that deadlines move when they are late, and place penalties caused by late information on the client, the fine is the client's. Keep a record of what was received and when.

Can we refuse to hand over records until we are paid?

The terms can make handover of your own working papers conditional on payment of undisputed fees. The client's own records are the client's, and the terms should distinguish the two.

A lender relied on management accounts we prepared and now complains. Are we exposed?

If the terms say reports are prepared from the client's records without verification and are for the client's management use only, not for third parties, the lender has no claim under the terms and the client was told the limits.

Related guidance and services

• Terms and conditions drafting, £995, the service this page describes
• Contract review, £495
• Terms and conditions for a payroll bureau

This page is general guidance for businesses in England and Wales, not advice on your own circumstances. Last reviewed: September 2026. Email geoffrey@caesar.co.uk.