EXAMPLE SERVICE LEVEL AGREEMENT


[Your Business Details]

I thought it would be useful to detail our agreement for my provision of services to your business. The agreement will continue unless and until it is terminated by either party giving notice as stated below.

As discussed, my terms are as follows:

Responsibilities of Service Provider / To do business accounts and payroll as required. To provide farm office services as required – to include accounts, cattle records, NVZ records. You may want to go into more detail of what you will do, i.e. monthly accounts, VAT, write cheques, do online banking, payroll, year end procedures to the accounts prior to them being sent to accountant, backup procedures etc[1]. These are the Agreed Services and I undertake to provide them using reasonable skill and care.
Any changes or additions to the Agreed Services must be made in writing and additional work will be charged at the rate provided below.
Location of Services / Accounts information will be collected from your premises every [ X ] weeks and will be processed at home/ All work to be done at client’s offices unless otherwise agreed.
Charges / [£] per hour spent in the provision of the Agreed Services for your business, whether on site or elsewhere. The hourly rate is subject to an annual review on [DATE] each year, with the next review being [DATE]. Charges will be invoiced [at the end of each calendar month].
Payment Terms / [XX days from date of invoice] by [BACS/cheque/other]
Accounts software and other programs / Your accounts will be run on [X accounts software] on computer provided by me, and the software will be updated from time to time as necessary and virus protected. Other software used will be[2] […..] which will be provided and also be updated from time to time as necessary and virus protected by you/me.
Travel / Mileage will be payable at [45p] per mile from home to your premises or to any other location I am required to attend on your behalf, and this rate is to be reviewed annually on [DATE] month
Hours / In order to carry out the Agreed Services, I estimate that I will require [X] hours per visit to your premises. Where further time is required for additional support e.g. VAT/PAYE/TAX inspections and or visits to your accountants, I will notify and agree those additional hours of work in advance.
Visits / One visit per [x number of times per] weeks/month unless otherwise agreed.
Client responsibilities and Service Provider’s liability / You must ensure that all documents, financial information and other data necessary is provided to me promptly in order that I can carry out the Agreed Services. In particular you must ensure that all invoices etc are approved prior to each visit that cheque books and paying in books are completed and that bank statements are provided/available on line[3]. You are responsible for the accuracy of any information you provide to me for processing. I cannot be responsible for any delay, loss, damage, costs, expenses or other claim for compensation arising where information or instructions are incomplete, incorrect, inaccurate, and illegible or where information is provided late or incomplete. If any loss or damage is suffered by you purely as a result of my negligence or default in the performance of the Agreed Services, I will accept liability up to a limit of [may put your PI insurance limit in here/ x months’ charges]
Access / You are responsible for ensuring that I have access to the premises and to all the information that I require in order to complete the services. Where this is not provided, and I have to spend time in making additional visits or in seeking and then processing or preparing information, you will be charged at the normal hourly rate for that work.
Health and Safety / You are responsible for taking reasonable care of my health and safety while I am on your premises and for the provision of insurance covering me for personal injury etc while I am working on your premises. You undertake to comply with all relevant and current health and safety regulations in relation to the workplace.
On line procedures / You will provide access to on-line banking, VAT and Payroll. You must authorise all on-line bank payments before they are entered onto the banking software/on-line facility. You must also authorise VAT and Payroll payments before they are processed on-line. I cannot be responsible where payments are made in error or incorrect payments are made which have been authorised by you.
Backup of Data / All program data will be backed up at the end of each visit and I will retain a copy of the backup and take it offsite.
Employment Status / I will be working on a Self-Employed basis and will be responsible for my own PAYE, National Insurance and Professional Indemnity liabilities
Substitution / Where I am unavailable or where I am incapacitated for any reason e.g. illness, I undertake to identify a suitably qualified substitute who may be used to perform the Agreed Services with your approval and entirely at your discretion. Where possible, I will take all reasonable steps to ensure that any substitute has all the information and facilities necessary to carry out the Agreed Services.
Termination of Contract / Either party may serve [one month’s] written notice of termination of this agreement at any time.
Confidentiality / I will treat all of your client information with utmost confidentiality at all times. All information retained off site will be kept securely and password protected where appropriate. I undertake to comply with the provisions of the Data Protection Act 1998 in relation to all data held or controlled by me in the course of providing the Agreed Services
Code of Conduct / I will conduct my business in line with the IAgSA Code of Conduct.
Entire Agreement / The terms of this agreement represent the entire agreement between the parties and supersede any previous representations or agreements between us.
Governing Law / The agreement is governed by the law of England and Wales

As bookkeeping services now come under the Money Laundering regulations I shall require a copy of your driving licence/passport photo and a utility bill for my records.

I would be grateful if you could sign a copy of this letter confirming your agreement with its terms and return it to me on my next visit.

I look forward to a good working relationship.

Client ………………………………………………………………….. Date……………………………………….


This document and the information contained within it are for guidance only and where necessary you should obtain specialist legal advice before using it. The Association cannot accept responsibility for loss or damage caused by the use of this document or of the information contained therein.

[1]REFERENCE POINTS FOR YOU TO CONSIDER:-

Always remember the benefit of being clear about what you are doing and also what you are not responsible for – sometimes this is in the form of confirming who else is doing that particular task. This is useful when other professionals are involved who might be doing some things e.g. a firm of accountants are also providing services to your client

[2]
You should lay out here details of computer software you will use for each task listed in the services laid out above, and you should also make clear who is providing that software and any updates

[3]
3 Here you can lay out the client’s responsibilities in order to ensure that you have everything you need in order to be able to complete the accounts – examples are given but can be amended or added to as necessary

Disclaimer: Please note this Service Level Agreement is for general guidance of members. Users should check the details are relevant to their situation and take professional advice for a bespoke agreement.