Arkansas accounting independent contractor agreement template

Arkansas Accounting Independent Contractor Agreement

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

[Client Legal Name], located at [Client Address], with email address [Client Email] and phone number [Client Phone Number] (hereinafter referred to as “Client”), and

[Contractor Legal Name], located at [Contractor Address], with email address [Contractor Email] and phone number [Contractor Phone Number], and Arkansas CPA License/Permit number (if applicable) [Contractor License Number] (hereinafter referred to as “Contractor”).

1. Scope of Services

The Contractor agrees to provide the following accounting services to the Client (the “Services”):

Option A: General ledger maintenance, including recording transactions, reconciling accounts, and preparing trial balances.

Option B: Payroll processing, including calculating wages, withholding taxes, and preparing payroll reports and filings for federal and Arkansas requirements.

Option C: Bank reconciliations, ensuring accurate cash balances.

Option D: Preparation of financial statements (income statement, balance sheet, statement of cash flows) in accordance with [Relevant Accounting Standards, e.g., GAAP].

• Deliverable Format: [e.g., PDF, Excel].
• Reporting Schedule: [e.g., Monthly, Quarterly, Annually].

Option E: Compliance with federal and Arkansas state tax filing and reporting requirements, including [Specify Tax Types, e.g., Sales Tax, Income Tax].

Option F: Audit support, including preparing supporting documentation and responding to auditor inquiries.

Option G: Internal controls consulting, including evaluating and improving internal control systems.

Option H: Financial analysis, including [Specify Analysis Types, e.g., Ratio Analysis, Trend Analysis].

Option I: Budget preparation and forecasting.

Option J: Industry-specialized accounting tasks: [Specify Tasks].

• Accuracy Standard: [Error Rate, e.g., No more than 0.1% error rate].
• Completion Deadline: [Specify Milestone and Deadline].

2. Work Location and Data Handling

The primary work location shall be:

Option A: Remote.

Option B: Client's premises located at [Client Address].

Option C: Hybrid, with [Number] days per week at the Client's premises and the remainder remote.

The Contractor shall:

Comply with all applicable Arkansas privacy and data protection laws regarding the handling of Client financial data.

Adhere to Arkansas Board of Public Accountancy rules regarding physical and electronic records retention.

Implement policies for off-site data backups.

Use secure methods for accessing client systems and transmitting data.

3. Tools and Software

The Contractor shall use the following tools and software:

[List Software, e.g., QuickBooks, Xero, Microsoft Excel].

The Contractor shall ensure compliance with Arkansas Code Annotated provisions on electronic filings, digital signatures, and confidentiality.

4. Compensation

The Client shall compensate the Contractor as follows:

Option A: Hourly rate of [Dollar Amount] per hour.

Option B: Per-service fee of [Dollar Amount] per [Specify Service, e.g., Tax Return].

Option C: Retainer fee of [Dollar Amount] per [Time Period, e.g., Month].

Option D: Flat project rate of [Dollar Amount] for the entire project.

The following terms also apply:

Arkansas state and local sales taxes: [Specify if Applicable and Included].

Expense Reimbursement: [Specify Policy, e.g., Reimbursed at cost with receipts].

Billing Interval: [e.g., Monthly, Upon Completion].

Accepted Payment Methods: [e.g., Check, Electronic Funds Transfer].

Invoice Content: [e.g., Date, Invoice Number, Description of Services, Hours Worked, Rate].

Payment Due Date: [Number] days from the invoice date.

Late Payment Penalty: [Percentage] per month, subject to Arkansas usury laws.

5. Ownership of Work Product

All work products, analyses, financial records, and reports prepared by the Contractor shall be the property of the Client. This includes all intellectual property, electronic records, and derivative works created in performance of the accounting services, which become the property of the Client upon payment or as determined under Arkansas rules on ownership of work-for-hire.

Upon termination of this Agreement, the Contractor shall immediately return or destroy all Client data, consistent with Arkansas data breach notification statutes.

6. Confidentiality

The Contractor agrees to maintain strict confidentiality regarding all Client financial data, tax records, and proprietary information, consistent with the Arkansas Uniform Trade Secrets Act. The Contractor shall not disclose or misuse any such information to any third party. This confidentiality obligation shall survive the termination of this Agreement.

7. Independent Contractor Relationship

The Contractor is an independent contractor and not an employee of the Client, consistent with the Arkansas Worker Classification Act. The Client will not withhold taxes or make unemployment or workers' compensation contributions on behalf of the Contractor.

The Contractor is responsible for all federal and Arkansas income and self-employment taxes, business license requirements, and insurance coverage (such as professional liability or E&O) mandated or customary under Arkansas law.

8. Limitation of Liability

The liability of either party shall be limited as follows:

Cap on damages for negligence: [Dollar Amount].

Exclusion of liability for consequential losses.

Contractor indemnification for regulatory violations.

9. Termination

This Agreement may be terminated as follows:

Option A: Upon completion of the Services.

Option B: By either party with [Number] days written notice.

Option C: Immediately by either party for material breach of this Agreement.

Option D: Immediately by the Client if the Contractor's Arkansas licensure is suspended or revoked.

Upon termination, the Client shall pay the Contractor for all completed work up to the date of termination. The Contractor shall promptly transition and handover all client files and information.

10. Dispute Resolution

Any dispute arising out of or relating to this Agreement shall be resolved as follows:

First, the parties shall attempt to resolve the dispute through good faith negotiation.

If negotiation fails, the parties shall attempt to resolve the dispute through mediation or arbitration in Arkansas pursuant to the Arkansas Uniform Arbitration Act.

If mediation or arbitration fails, the parties may pursue litigation in the state or federal courts located in [Specify County], Arkansas.

• Arkansas law shall govern the interpretation and enforcement of this Agreement.

11. Regulatory Compliance

The Contractor shall comply with all applicable Arkansas statutes and regulations for accounting services, including the Arkansas Accountancy Act, state tax regulations, and reporting obligations under the Arkansas Department of Finance and Administration. The Contractor shall also comply with all applicable anti-fraud policies and continuing professional education requirements.

12. Arkansas-Specific Provisions

The Client has the right to audit the Contractor's work related to this agreement.

The Contractor shall maintain a valid and current license with the Arkansas State Board of Public Accountancy.

The Contractor shall maintain professional liability insurance with minimum coverage of [Dollar Amount].

The Contractor, if out-of-state, shall comply with Arkansas local business tax registrations.

13. Miscellaneous

This Agreement may be amended only by a written instrument signed by both parties.

This Agreement shall not be assigned by either party without the prior written consent of the other party.

The Contractor shall not subcontract any of the Services without the prior written consent of the Client.

This Agreement constitutes the entire agreement between the parties.

14. Force Majeure

Neither party shall be liable for any failure to perform its obligations under this Agreement if such failure is caused by any act of God, war, terrorism, fire, flood, earthquake, or other similar event beyond the reasonable control of such party.

15. Notice

All notices under this Agreement shall be in writing and sent to the addresses set forth above. Electronic communication shall be permitted, pursuant to the Arkansas Uniform Electronic Transactions Act.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.

____________________________

[Client Legal Name]

____________________________

[Contractor Legal Name]