Contracts: Are They Necessary?


Q. Are contracts necessary?

A. Yes, if you are contracting for a professional service such as bookkeeping or taxes or something along those lines, it helps to have a written agreement to protect both parties. It should spell out specific responsibilities and duties for each party. It also outlines fees, payment terms, duration, and termination procedures. In my line of work (bookkeeping), I start off with a written proposal based on a free initial consultation, then the proposal turns into a three-month trial agreement to see if we are a good fit moving forward before I usually set up one-year terms.

Without a contract, there is fertile ground for misunderstanding and scope-creep (which is a separate topic worthy of its own article!). So in these circumstances, the contract is a must-needed item.

Oh, and it helps to have someone familiar with contract law review your contracts to see if they will hold up in court if necessary. Check with your state, as your laws may differ from state to state.

Featured Posts
Recent Posts
Archive
Search By Tags
Follow Us
  • Facebook Basic Square
  • Twitter Basic Square
  • Google+ Basic Square

© 2014 - 2020 by Bookkeeping Clean and Simple. Proudly created with Wix.com

Legal Disclaimer: All information provided herein is intended for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. All information is provided "as is," with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.