Alabama accounting independent contractor agreement template

Alabama Accounting Independent Contractor Agreement

This Alabama Accounting Independent Contractor Agreement (the “Agreement”) is made and entered into as of this [Date] (the “Effective Date”) by and between:

[Client Company Name], a company organized and existing under the laws of Alabama, with its principal place of business at [Client Address], and email address [Client Email], primary contact number [Client Phone], hereinafter referred to as “Client,”

and

[Contractor Name], an independent contractor with its principal place of business at [Contractor Address], and email address [Contractor Email], primary contact number [Contractor Phone], hereinafter referred to as “Contractor.”

Scope of Accounting Services

Option A: General Accounting Services

The Contractor shall provide the following accounting services to the Client: Bookkeeping, financial statement preparation, audit support, payroll processing, preparation and filing of Alabama state and local taxes (e.g., Alabama Business Privilege Tax, state sales/use tax), and consultation on Alabama tax regulations.

Option B: Specialized Accounting Services

The Contractor shall provide specialized accounting services tailored to the [Industry, e.g., healthcare, agriculture, construction] industry, including but not limited to: [Specific service 1, e.g., revenue cycle management], [Specific service 2, e.g., farm accounting], and [Specific service 3, e.g., job costing].

Option C: Internal Controls Assessment

The Contractor shall perform an assessment of the Client's internal controls, providing recommendations for improvement and compliance with relevant Alabama regulations.

Deliverables, Timelines, and Reporting

Option A: Standard Deliverables

The Contractor shall provide the following deliverables: Monthly financial statements by the [Day of Month] of each month; Quarterly reports by the [Day of Month] following each quarter-end; Annual reports by [Date].

Option B: Customized Deliverables

The Contractor shall provide the following customized deliverables: [Specific deliverable 1, e.g., Budget vs. Actual Analysis] by [Frequency, e.g., monthly]; [Specific deliverable 2, e.g., Key Performance Indicator (KPI) report] by [Frequency, e.g., quarterly].

Option C: Milestone-Based Delivery

The Contractor shall deliver services based on the following milestones: [Milestone 1, e.g., Completion of initial bookkeeping setup] by [Date]; [Milestone 2, e.g., Preparation of first quarterly tax return] by [Date].

Work Location and Access

Option A: On-Site

The Contractor will perform services primarily at the Client's principal place of business in Alabama, located at [Client Address].

Option B: Remote

The Contractor will perform services remotely, utilizing secure electronic communication and data transfer methods.

Option C: Hybrid

The Contractor will perform services both on-site and remotely, as required by the Client and mutually agreed upon, with on-site work occurring no less than [Number] days per [Week/Month].

Fee Arrangement and Payment

Option A: Hourly Rate

The Client shall pay the Contractor an hourly rate of [Dollar Amount] per hour for services rendered.

Option B: Project-Based Fee

The Client shall pay the Contractor a fixed fee of [Dollar Amount] for the completion of the following project: [Description of Project].

Option C: Retainer

The Client shall pay the Contractor a retainer fee of [Dollar Amount] per month, due on the [Day of Month], for a minimum of [Number] hours of service. Any hours exceeding the minimum will be billed at [Dollar Amount] per hour.

Payment Terms:

Invoices are due and payable within [Number] days of receipt. Payments shall be made via [Payment Method, e.g., check, ACH transfer]. The Client is responsible for reporting payments to the Contractor to the IRS via Form 1099, as required.

Reimbursement of Expenses

Option A: Reimbursable Expenses

The Client shall reimburse the Contractor for reasonable and pre-approved out-of-pocket expenses, including but not limited to: [Expense 1, e.g., travel expenses], [Expense 2, e.g., software costs].

Option B: No Reimbursement

The Contractor is responsible for all expenses incurred in the performance of services, and the Client will not reimburse any such expenses.

Requirements:

All expenses must be pre-approved in writing by the Client and supported by valid receipts or documentation.

Confidentiality and Non-Disclosure

The Contractor agrees to hold all Client information, including financial records and client lists, in strict confidence in accordance with the Alabama Uniform Trade Secrets Act. The Contractor shall not disclose any such information to any third party without the Client’s prior written consent.

Intellectual Property

All records, working papers, and deliverables related to the Client’s business in Alabama are the property of the Client. The Contractor retains ownership of any generic templates or non-confidential know-how developed during the engagement.

Independent Contractor Status

The Contractor is an independent contractor and not an employee or agent of the Client. The Contractor is responsible for all self-employment taxes, insurance (including Alabama workers’ compensation if applicable and professional liability insurance), and compliance with state/local business licensing, including registration as a business entity with the Alabama Secretary of State if required.

Liability

The Contractor shall be liable for damages caused by its professional negligence, subject to the limitations on damages permitted by Alabama law. The Client agrees to indemnify and hold harmless the Contractor from any claims arising out of the Client’s business operations.

Non-Solicitation and Non-Compete

The Contractor agrees not to solicit any employees or customers of the Client for a period of [Number] months following the termination of this Agreement, consistent with the permissible limits under Alabama law. Any non-compete obligations are subject to the limitations of Alabama's current statutory limits on restrictive covenants.

Termination

Option A: Termination with Cause

Either party may terminate this Agreement for cause upon [Number] days written notice.

Option B: Termination without Cause

Either party may terminate this Agreement without cause upon [Number] days written notice.

Upon termination, the Contractor shall promptly return all Client records and deliverables and settle all outstanding invoices.

Termination must comply with Alabama's legal standards for contract termination.

Record Retention and Return

The Contractor shall maintain records in accordance with Alabama Board of Public Accountancy rules and IRS guidelines for Alabama taxpayers. Upon termination, all records shall be promptly returned to the Client.

Compliance with Laws

The Contractor shall comply with all applicable federal, Alabama state, and local laws regulating accounting services, including Alabama Board of Public Accountancy rules and regulations.

Communication and Notice

All notices shall be in writing and delivered via [Method of Delivery, e.g., email, certified mail] to the addresses listed above. Electronic signatures shall be deemed valid under Alabama’s Uniform Electronic Transactions Act.

Subcontractors

The Contractor shall not use subcontractors without the Client’s prior written approval. Any subcontractors must comply with all applicable Alabama laws and professional standards.

Dispute Resolution

Any disputes arising out of or relating to this Agreement shall be resolved through: (1) Negotiation between the parties; (2) Mediation, with a mediator located in [County Name] County, Alabama; (3) Arbitration or litigation in Alabama courts, with exclusive application of Alabama law and venue in [County Name] County, Alabama.

Force Majeure

Neither party shall be liable for any failure to perform its obligations under this Agreement due to any cause beyond its reasonable control, including acts of God, war, terrorism, or Alabama-specific disaster declarations (such as tornado, hurricane, or other local force majeure events), provided that such party promptly notifies the other party of such event.

Severability

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

Waiver

No waiver of any provision of this Agreement shall be effective unless in writing and signed by the party against whom the waiver is sought, consistent with Alabama contract principles.

Anti-Money Laundering, Anti-Fraud, and Ethical Conduct

The Contractor shall comply with all applicable anti-money laundering, anti-fraud, and ethical conduct provisions referencing relevant Alabama statutes and the AICPA Code of Professional Conduct.

Integration and Amendment

This Agreement constitutes the entire agreement between the parties and supersedes all prior negotiations or agreements. Any amendment to this Agreement must be in writing and signed by both parties.

Succession and Assignment

This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and permitted assigns. Assignment by either party requires the prior written consent of the other in accordance with Alabama contract law.

Legal Counsel

Both parties acknowledge that they have had the opportunity to seek Alabama legal counsel regarding this Agreement. The Contractor assumes exclusive responsibility for its own business, tax, and regulatory filings within Alabama.

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

[Client Company Name]

By: [Client Name]

Title: [Client Title]

[Contractor Name]

By: [Contractor Name]

Title: [Contractor Title]

Optional Notarization Clause

State of Alabama, County of [County Name]

On this [Day] day of [Month], [Year], before me, [Notary Public Name], the undersigned officer, personally appeared [Client Name], known to me (or satisfactorily proven) to be the person whose name is subscribed to the within instrument and acknowledged that he/she executed the same for the purposes therein contained.

In witness whereof I hereunto set my hand and official seal.

[Notary Public Signature]

[Notary Public Stamp/Seal]

My commission expires: [Date]