Understanding Service Level Agreement in Accounting: A Quick Guide

Service Level Agreement in Accounting

Do you still think taking up or offering a service without a service level agreement in accounting is good to go? If yes, you must read this article to understand how a bookkeeping SLA gives businesses the right to expect quality and deadline-driven services and service providers a reason to trust their clients.

Involvement in a professional affair requires a whole lot of formalities. No matter what the position is, verbal interaction cannot be relied on. Having proper documents to confirm employment is a must. Thus, when you are hiring a bookkeeper for your firm, make sure you have a Service Level Agreement (SLA) made. A service level agreement in accounting plays a vital role in specifying employment confirmation, clauses, and conditions for the service providers to be aware of.

What Is A Service Level Agreement?

A service level agreement is a document signed by a service provider and its clients or customers. It is a legally binding credential whereby the service providers agree and promise to deliver services as expected from them.

The agreement assures clients and customers of providing specific services on a specific schedule. Failing to meet the quality, standards, and schedules would make the service provider liable to face strict actions. The clients and customers can report the matter to the Better Business Bureau. In case they are not satisfied with the services in any manner.

Why Should You Have A Bookkeeper Service Level Agreement?

Accounting functions are quite complicated and crucial affairs. Thus, trusting any random professional is never a good idea. To make sure, clients do not have to compromise on their service needs in any way, an SLA is drafted. Using this draft, the clients/customers get an assurance that the person, who is their service provider, would offer up-to-the-mark services within the specified deadlines.

When you have this agreement prepared, it gives you the right to take action against your service provider if you find them compromising on quality or deadlines. In addition, your service providers try their best to match up to your expectations in terms of quality without missing on the schedules. In short, the service level agreement in accounting builds seriousness among the professionals, you are trusting for your work to be done.

Along with the clients, the SLAs also serve to be useful for self-employed service providers. Most of the time, the latter are ghosted after getting the work done. This is a situation where the businesses or individuals get the work done by the service providers and then vanish suddenly without paying them in return. The service level agreement book becomes a formal contract between the two parties, convincing them of being involved in a genuine deal.

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Does Your Bookkeeper Have A Service Level Agreement?

If you have a service-level agreement, you have made the right choice. However, if you do not have one, there are lots of struggles you have to face in that case as a business firm. Outsourcing a task to an individual is a major risk that businesses take as clients. While some of them will live up to your expectations, the rest would turn out to be a stress for you.

Thus, if you want your business to flow smoothly when you trust someone with the bookkeeping service. Get a service level agreement book drafted as soon as possible. You can put the list of services expected along with the clauses and conditions of the services, within the agreement. It becomes a ready reference for both the parties involved in case of disputes regarding service delivery and acceptance. In short, this agreement will keep you and your service providers on the same page.

SLA Template

When you get the service level agreement in accounting made. There are a few components that must be added. Including the name of both the parties involved, the type of services to be provided, the disclaimer, termination, and a section for signature. Besides these, a business can transform the structure as per the requirement.

Let us have a look at a common accounting service level agreement template sample to understand what it looks like:

Final Thoughts

As the accounting service level agreement template example has already given you an idea. About how the document should look like and you should go about it. It is recommended that you get it prepared soon. From onboarding a bookkeeper to making sure the services are up to the mark and deadline-driven. This agreement will assure it all. So, what are you waiting for? Get rid of the hassle of hiring a new bookkeeper every time the previous one handles the work casually. In addition, the agreement acts as a confirmation of service from the end of the client, which is enough for service providers to trust the businesses and be convinced that they won’t be ghosted. Make it a serious affair for both of you. It will legally bind both parties to stick to the clauses and be transparent. 

Put your clauses within the agreement and we are ready to promise the best we can offer. Our accounting experts will take care of all financial aspects of your business from preparing financial statements for stakeholders to helping you in interpreting the records for effective decision-making. For a reliable accounting guide, contact us ASAP!

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