Terms of Service

Last updated: September 2025

These Terms of Service ("Terms") govern your use of Modern Ledger's bookkeeping services, website, and related offerings. By engaging our services or accessing our website, you agree to be bound by these Terms.

1. Services Overview

Modern Ledger provides professional bookkeeping, accounting, and financial management services to small businesses. Our services include:

• Monthly bookkeeping and reconciliation
• Financial statement preparation
• Tax preparation support
• Payroll processing and integration
• Accounting system setup and cleanup
• Financial reporting and analysis

2. Client Responsibilities

Information Accuracy

You agree to provide accurate, complete, and timely financial information necessary for us to perform our services, including:

• All bank statements, credit card statements, and financial records
• Accurate business information and tax identification numbers
• Timely responses to our requests for additional information
• Notification of any changes in business structure or operations

Access and Cooperation

You agree to:

• Provide secure access to accounting systems and financial platforms
• Cooperate with our requests for documentation and information
• Notify us promptly of any security concerns or unauthorized access
• Maintain backup copies of all provided documentation

3. Service Standards and Warranties

Professional Standards

Our services are performed in accordance with:

• Generally Accepted Accounting Principles (GAAP)
• Texas state accounting and tax regulations
• IRS guidelines and requirements
• Industry best practices for bookkeeping and financial management

Service Warranty

We warrant that our services will be performed with reasonable professional skill and care. However, we cannot guarantee specific financial outcomes or tax results, as these depend on various factors beyond our control.

4. Fees and Payment Terms

Service Fees

Fees for services are as agreed upon in writing and outlined in your service agreement. Fees may be:

• Monthly retainer fees for ongoing services
• Project-based fees for specific engagements
• Hourly rates for additional services

Payment Terms

• Invoices are due within 30 days of receipt unless otherwise specified
• Late payments may incur interest at 1.5% per month
• Services may be suspended for accounts 60+ days past due
• All fees are exclusive of applicable taxes

Fee Adjustments

We reserve the right to adjust fees with 30 days written notice. Fee increases will not exceed 10% annually unless agreed upon in writing.

5. Confidentiality and Data Security

Confidential Information

Both parties agree to maintain the confidentiality of all proprietary or sensitive information disclosed during the course of our professional relationship.

Data Protection

We implement industry-standard security measures to protect your financial information:

• 256-bit SSL encryption for all data transmission
• Encrypted storage of sensitive financial data
• Multi-factor authentication for system access
• Regular security audits and updates
• Secure backup and disaster recovery procedures

Data Ownership

You retain ownership of all your financial data and records. We maintain copies for service purposes and legal compliance but will provide access to your data upon request.

6. Limitation of Liability

Service Limitations

Our services are limited to bookkeeping and accounting functions. We do not provide legal, tax, or investment advice unless explicitly agreed upon in writing.

Liability Cap

Our total liability for any claim arising from our services shall not exceed the total fees paid by you in the 12 months preceding the claim, regardless of the nature of the claim.

Excluded Damages

We are not liable for indirect, incidental, consequential, or punitive damages, including lost profits, business interruption, or third-party claims.

7. Termination and Cancellation

Termination by Client

You may terminate services at any time with 30 days written notice. You remain responsible for all fees incurred through the termination date.

Termination by Modern Ledger

We may terminate services with 30 days notice for:

• Non-payment of fees
• Failure to provide required information or access
• Violation of these Terms
• Cessation of business operations

Post-Termination Obligations

Upon termination:

• All outstanding fees become immediately due
• We will provide final financial statements within 30 days
• You may request transfer of data to another provider
• Confidentiality obligations remain in effect

8. Tax and Legal Compliance

Tax Responsibilities

While we assist with tax preparation and compliance, ultimate responsibility for tax accuracy and filing deadlines rests with you. We recommend consulting with a qualified tax professional for complex tax matters.

Regulatory Compliance

Our services are performed in compliance with applicable laws and regulations, including:

• Texas Business & Commerce Code
• IRS Circular 230 (for tax professionals)
• Gramm-Leach-Bliley Act (GLBA) privacy requirements
• Generally Accepted Accounting Principles (GAAP)

9. Intellectual Property

All work product, methodologies, and proprietary processes developed by Modern Ledger remain our intellectual property. You are granted a limited license to use deliverables for your business purposes only.

10. Dispute Resolution

Governing Law

These Terms are governed by Texas law. Any disputes shall be resolved in Texas courts.

Mediation

Before pursuing legal action, parties agree to attempt resolution through mediation with a neutral third party.

11. Force Majeure

Neither party shall be liable for delays or failures in performance due to circumstances beyond reasonable control, including natural disasters, pandemics, or government actions.

12. Amendments

These Terms may be amended with 30 days notice. Continued use of our services after amendments constitute acceptance of the new terms.

13. Severability

If any provision of these Terms is found invalid or unenforceable, the remaining provisions shall remain in full force and effect.

14. Entire Agreement

These Terms, together with your service agreement, constitute the entire agreement between the parties and supersede all prior agreements or understandings.

Contact Information

By engaging Modern Ledger's services, you acknowledge that you have read, understood, and agree to be bound by these Terms of Service.