Bookkeeping Client Agreements In New Zealand

Anika runs a small bookkeeping business in Wellington. A new cafe client signs up for monthly reconciliations, but within a few weeks Anika is also chasing missing invoices, fixing payroll coding issues, setting up Xero bank rules and answering weekend messages about GST.

The work is valuable, but the arrangement is vague. The client thinks it's all included. Anika knows it's not, but she never put the limits in writing.

If you're onboarding clients, a clear bookkeeping client agreement in NZ can save you a lot of awkward conversations. It helps you set the scope, collect information on time, protect access to accounting systems and make sure your fees match the work you're actually doing.

Do I Need A Written Bookkeeping Client Agreement?

Yes, you should have a written client agreement before you start work, even if the client seems straightforward or you have worked with them informally before.

Your agreement might be called an engagement letter, client terms, bookkeeping terms and conditions, or an accounting services agreement. The name matters less than what it does. It should clearly explain:

• what services you'll provide
• what isn't included
• what information the client needs to give you
• when you'll deliver the work
• how and when you'll be paid
• what authority you have to access systems like Xero, MYOB, payroll tools and bank feeds
• how liability is limited if something goes wrong

Without a written agreement, you may struggle to recover unpaid invoices or push back on extra work. You may also end up being blamed for late filings, incorrect records or missed deadlines that were caused by the client not sending information on time.

A written agreement also helps with compliance. Under the Fair Trading Act 1986, you need to be careful that your marketing and onboarding materials don't mislead clients about what you do. For example, if you're a bookkeeper rather than a chartered accountant or tax adviser, your terms shouldn't suggest you're providing services outside your qualifications or scope.

If your clients are businesses, your agreement can usually be more commercial and practical than a consumer-facing contract. Still, the wording should be fair, clear and easy to follow.

What Should My Bookkeeping Terms And Conditions Cover?

Your bookkeeping terms and conditions should work like a clear service agreement, covering the full working relationship from onboarding through to termination.

Templates can be a useful starting point, but they often miss the details that matter most for bookkeeping work. A lawyer should tailor your document before you use it, especially if you handle payroll, GST, IRD communications, or access to client bank data.

Fill-In Outline For Your Agreement

1. Parties: Write the correct legal names, NZBN if relevant, trading names and contact people.
2. Services: List the exact bookkeeping tasks you'll perform, such as reconciliations, accounts payable, payroll processing or management reports.
3. Exclusions: State what you don't provide, such as tax advice, audit work, insolvency advice, legal advice or financial planning.
4. Client Obligations: Explain what the client must provide, including invoices, receipts, bank access, payroll details and approvals.
5. Deadlines: Set cut-off dates for information and make clear that late information can delay lodgements or reports.
6. Fees And Payment: Set out fixed fees, hourly rates, extra work charges, payment due dates and any suspension rights for overdue invoices in a clear goods and services agreement.
7. System Access: Record the authority to access Xero or other software and the limits on what you can do inside those systems.
8. Confidentiality And Privacy: Cover business records, employee information, payroll data and secure handling of personal information.
9. Liability: Include appropriate limits, exclusions and rules for client-caused errors or delays.
10. Ending The Engagement: Explain how either side can end the agreement and what happens to records, final invoices and system access.

For company clients, check the client name against the Companies Office and confirm who has authority to sign. If you're dealing with a trading name, record the actual company or sole trader behind it. That small step can make invoices and responsibility much clearer later.

How Do I Stop Scope Creep With Bookkeeping Clients?

You stop scope creep by defining the service clearly, pricing extra work upfront and giving yourself a simple change process.

Scope creep is one of the biggest pressure points in bookkeeping. It often starts with small requests that feel harmless. Then, suddenly, you're fixing historic records, chasing suppliers, training staff and rebuilding payroll settings for the same monthly fee.

Your agreement should separate the core services from add-ons, so the service scope is easy to apply in practice.

Core Services

These are the services included in the regular fee. For example:

• monthly bank reconciliations for up to 250 transactions
• coding supplier invoices provided by the 5th of each month
• preparing monthly profit and loss reports
• standard payroll processing for up to 10 employees
• GST return preparation based on records supplied by the client

Extra Work

These are tasks that need a separate quote or approval. For example:

• catch-up bookkeeping for earlier periods
• cleaning up incorrect Xero coding or duplicate transactions
• setting up new entities, tracking categories or payroll systems
• responding to IRD queries or accountant requests
• urgent work outside your usual turnaround times
• training the client's team on accounting software

Here is a practical example. Say you charge a fixed monthly fee for 250 transactions. In April, your client uploads 600 transactions and asks you to prepare a management report two days earlier than usual. Your terms can say the first 250 transactions are included, the extra 350 are charged at your agreed extra-work rate, and urgent reporting needs written approval before you start.

That kind of clause isn't about being difficult. It helps your client understand what they're paying for and helps you keep the service sustainable.

What Client Information And Deadlines Should I Put In Writing?

You should put every key client information obligation in writing, because your deadlines often depend on the client giving you complete and accurate records on time.

Bookkeeping work is rarely done in a vacuum. If the client doesn't upload receipts, approve payroll, explain unusual transactions or give you bank access, you may not be able to meet reporting or filing dates.

Your terms should say the client is responsible for:

• giving accurate, complete and up-to-date information
• keeping source documents such as receipts, invoices and employment records
• reviewing reports and telling you about errors quickly
• approving payments, pay runs or returns before lodgement if that's part of your process
• telling you about business changes, new staff, new bank accounts or new revenue streams
• meeting IRD obligations unless you have expressly agreed to handle a specific task

It also helps to include cut-off dates. For example, you might require all monthly invoices and bank statements by the 5th business day after month-end. If the client sends records late, your agreement can say your delivery date moves by the same number of business days, or that urgent processing will cost extra.

For tax-related timing, don't rely on a casual email chain. IRD deadlines depend on the client's filing frequency and tax setup. Common examples include GST returns generally being due on the 28th of the month after the taxable period, with special dates for periods ending 30 November and 31 March. Payday filing information is generally due within 2 working days of payday. Your terms can require the client to confirm their deadlines in myIR or with their accountant, and to give you the information early enough to meet them.

This keeps responsibility where it belongs. You can do the bookkeeping work properly, but the client still needs to run their business records properly.

Can I Access A Client's Xero Or Accounting Software?

Yes, you can access a client's Xero, MYOB or other accounting software if the client gives you proper authority and your access is limited to the services you're providing.

This shouldn't be left to a verbal agreement. Your client terms should say exactly what systems you can access, what you're allowed to do and who remains responsible for approving key actions.

For a Xero bookkeeper contract, you might cover:

• the client's authority for you to access their Xero organisation
• the access level you need, such as adviser, standard user or payroll access
• whether you can invite your staff or contractors to assist
• whether you can contact Xero support or other software providers on the client's behalf
• whether you can lodge GST returns, prepare reports or process payroll inside the system
• what actions need client approval before you take them
• what happens to your access when the engagement ends

You should also think about privacy and security. Bookkeeping often involves personal information, especially payroll records, employee bank details, KiwiSaver information and leave data. Under the Privacy Act 2020, you need to collect, use, store and disclose personal information carefully. Your terms and internal processes should cover secure passwords, multi-factor authentication, staff access, data retention and what happens if there's a privacy breach.

If you use subcontractors, offshore support or cloud tools, be transparent about that. The client should know who may access their data and for what purpose. Your agreement should also require the client to use secure channels rather than sending payroll spreadsheets, passwords or bank details through unsafe methods.

When the relationship ends, remove access promptly and confirm what records you'll keep. That simple exit step can prevent confusion about who is responsible for records after you stop working together.

How Should I Limit Liability And Handle Compliance Risks?

You should limit liability by being clear about your role, excluding responsibility for client-caused problems and using a sensible liability cap that matches the risk of the engagement.

Bookkeepers often sit close to high-risk business functions. Payroll errors can affect staff. GST errors can trigger IRD penalties. Incorrect coding can affect management decisions. That doesn't mean you should carry unlimited risk for every issue connected to the client's accounts.

Your agreement can deal with this in a few practical ways.

Be Clear About Your Role

Say whether you're providing bookkeeping only, or whether you also prepare GST returns, payroll, management reports or other services. If you aren't giving tax, accounting, legal or financial advice, say so.

This is also a Fair Trading Act issue. Your website, proposals and client agreement should line up with your actual qualifications and services.

Exclude Client-Caused Losses

Your terms can say you aren't responsible for losses, penalties or late fees caused by:

• missing, false or late information from the client
• the client failing to review or approve work
• the client changing data after you have completed the work
• software outages or bank feed errors outside your control
• the client ignoring your reasonable requests or instructions

Use A Sensible Liability Cap

A liability cap sets the maximum amount you may have to pay if something goes wrong. The right cap depends on your services, fees, insurance and client profile. Some businesses link the cap to fees paid over a set period, while others use a fixed dollar amount. You should get tailored advice on the wording because some liability can't be excluded, and broad exclusions can backfire.

If you contract with business clients, you may also be able to contract out of parts of the Consumer Guarantees Act 1993, but only where the services are supplied for business purposes and it's fair and reasonable to do so. Your clause needs to be drafted carefully.

Finally, keep records of client approvals, missing information, deadline reminders and changes to scope. If a client later questions a fee or outcome, those records are often the difference between a calm explanation and a messy argument.

Key Takeaways

• A written bookkeeping client agreement helps you set scope, fees, deadlines, system access and responsibility from the start.
• Your engagement letter should spell out what is included and what counts as extra work, especially for catch-up bookkeeping, payroll fixes and urgent requests.
• Client information obligations matter because you can't meet deadlines if the client doesn't give you complete records on time.
• Xero and accounting software access should be authorised in writing, with clear limits on what you can do and who can approve key actions.
• Privacy, confidentiality and security clauses are essential if you handle payroll records, employee data or client financial information.
• Liability caps and exclusions should be tailored to your services, insurance and risk profile, rather than copied from a generic template.

If you'd like help with your bookkeeping client terms, engagement letters, Xero access clauses or privacy and liability protections, you can reach us at 0800 002 184 or team@sprintlaw.co.nz for a free, no-obligations chat.