Colorado accounting independent contractor agreement template

Colorado Accounting Independent Contractor Agreement

This Colorado Accounting Independent Contractor Agreement ("Agreement") is made and entered into as of [Date], by and between:

[Client Name], located at [Client Address], with a designated contact person, [Client Contact Person] ("Client"),

and

[Contractor Name], a [Contractor Business Entity Type, e.g., Sole Proprietorship, LLC], with a registered Colorado business address at [Contractor Colorado Business Address], and CPA License Number (if applicable) [Contractor CPA License Number] ("Contractor").

WHEREAS, Client desires to engage Contractor to provide certain accounting services; and

WHEREAS, Contractor desires to provide such services to Client as an independent contractor.

NOW, THEREFORE, in consideration of the mutual covenants contained herein, the parties agree as follows:

1. Scope of Services

Option A: Contractor shall perform the following accounting services for Client: [Detailed Description of Accounting Services, e.g., bookkeeping, account reconciliation, financial statement preparation, tax preparation (federal, state, local), advisory services, payroll services, audit support, Colorado sales and use tax assistance, industry-specific functions].

Option B: Contractor shall perform the services described in Exhibit A, attached hereto and incorporated by reference.

2. Performance and Reporting Standards

Option A: Deliverables shall include [Specific Deliverable Descriptions and Formats, e.g., monthly financial statements in PDF format, tax returns prepared using [Software Name]].

Option B: Frequency and deadlines for deliverables and reports shall be as follows: [Frequency and Deadlines, e.g., monthly reports due by the 15th of the following month, tax returns due on or before statutory deadlines].

Documentation and retention requirements: Contractor shall maintain [Documentation and Retention Requirements].

Milestones (if applicable): [Milestones and Corresponding Dates].

Method for performance evaluation: [Method of Performance Evaluation, e.g., client feedback, review of deliverables].

3. Location and Systems

Option A: Services shall be performed [Remotely OR at Client's Colorado Location].

Option B: Contractor will use the following client systems: [List of Client Systems].

Secure file exchange platform: [Designated Secure File Exchange Platform].

Client-supplied data and materials: Client shall provide [Description of Client-Supplied Data and Materials].

Data security requirements: Contractor shall comply with all federal and Colorado privacy and data protection laws, including but not limited to [Specific Colorado Data Protection Laws, e.g., Colorado Identity Theft Protection Act].

4. Service Fees and Payment

Option A: Fee structure: [Hourly Rate, Retainer, Per-Project Pricing, or Mixed] – specific rate: [Amount].

Option B: Invoicing and payment deadlines: Contractor shall submit invoices [Frequency, e.g., monthly], and Client shall pay within [Number] days of invoice receipt.

Required supporting documentation for invoicing: [List of Required Supporting Documentation].

Late payment penalties: Late payments shall accrue interest at a rate of [Percentage]% per month, or the maximum rate allowed by Colorado law, whichever is less.

Method and currency of payment: [Method of Payment, e.g., check, electronic transfer], in US dollars.

Reimbursement policy for pre-approved business expenses: [Reimbursement Policy, e.g., Client will reimburse for pre-approved travel expenses with receipts].

Allocation of responsibility for Colorado state and local sales or service taxes (if applicable): [Tax Responsibility Allocation].

5. Independent Contractor Status

Contractor is an independent contractor and not an employee of Client.

Contractor is responsible for paying all self-employment, federal, and Colorado state and local taxes.

Contractor shall provide Client with a completed Form W-9.

Contractor is responsible for carrying their own business and professional liability insurance.

6. Ownership of Work Product and Confidentiality

All accounting records, reports, work files, and data prepared by Contractor remain the property of Client.

Contractor shall maintain strict confidentiality of Client business or financial information.

Contractor shall adhere to AICPA, Colorado State Board of Accountancy, and other relevant regulatory standards on ethics and client data protection.

Contractor’s obligations under this clause survive the termination of this agreement.

7. Professional Standards and Compliance

Contractor shall maintain valid professional licenses required under Colorado law.

Contractor shall carry out continuing education as required by Colorado statutes.

Contractor shall comply with rules of professional conduct, anti-money laundering, anti-fraud, and professional indemnity requirements as applicable.

Contractor represents and warrants full compliance with all Colorado and federal accounting and tax laws, regulations, and professional standards.

8. Limitations of Authority

Contractor shall not bind Client to any agreements without express written consent.

Contractor shall not represent Client before tax authorities without express written consent.

9. Liability for Breach

Contractor shall be liable for damages resulting from substandard work, missed deadlines, errors or omissions in tax preparation or filings, data breaches, or regulatory non-compliance caused by the contractor's actions or omissions.

Contractor is responsible for any penalties, interest, or damages resulting from Contractor errors or willful misconduct, subject to the limitations outlined in Colorado law.

10. Indemnification

Contractor shall indemnify and hold harmless Client from and against any and all claims, losses, damages, liabilities, costs, and expenses (including reasonable attorneys' fees) arising out of or relating to any breach of professional duty, misrepresentation, or failure to comply with state and federal law by Contractor.

11. Subcontracting

Contractor shall not subcontract, assign, or delegate services without prior written consent from Client.

Any approved subcontractors must be licensed in Colorado if required.

12. Insurance

Contractor shall maintain professional liability (malpractice) insurance with minimum limits of [Amount].

If Contractor has employees, Contractor shall maintain active workers’ compensation coverage as required by Colorado law.

Contractor shall maintain general business liability insurance.

13. Term and Termination

Option A: The term of this Agreement shall be for a fixed period of [Number] months, commencing on [Date] and ending on [Date].

Option B: The term of this Agreement shall be ongoing until terminated as provided herein.

Either party may terminate this Agreement with [Number, e.g., 30] days written notice.

Upon termination, Client shall settle all outstanding fees owed to Contractor.

Contractor shall handover all deliverables and accounting records to Client.

14. Dispute Resolution

The parties shall attempt to resolve any disputes through good faith negotiation.

If negotiation fails, the parties agree to voluntary private mediation in [City, Colorado].

If mediation fails, any unresolved dispute shall be submitted to binding arbitration in [City, Colorado], in accordance with the rules of the American Arbitration Association, and governed by Colorado law.

The prevailing party shall be entitled to recover reasonable attorney’s fees and costs as permitted under Colorado law.

15. Colorado Compliance

Contractor shall comply with Colorado-specific labor and contractor classification statutes, including the Colorado Employment Security Act.

Contractor shall adhere to mandatory reporting, audit, and record-keeping requirements of the Colorado Department of Revenue and State Board of Accountancy.

16. Force Majeure

Neither party shall be liable for any failure to perform its obligations under this Agreement to the extent that such failure is caused by a force majeure event, including but not limited to acts of God, natural disasters (e.g., severe weather, floods, wildfires specific to Colorado), government regulations, or other events beyond the party’s reasonable control.

17. Miscellaneous

This Agreement shall be governed by and construed in accordance with the laws of the State of Colorado.

Any notices required or permitted under this Agreement shall be in writing and delivered to the addresses set forth above.

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

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

This Agreement constitutes the entire agreement between the parties and supersedes all prior or contemporaneous communications and proposals, whether oral or written.

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

[Client Name]

By: [Client Signature]

Name: [Client Printed Name]

Title: [Client Title]

[Contractor Name]

By: [Contractor Signature]

Name: [Contractor Printed Name]

Title: [Contractor Title]