Fund Accounting Services Agreement

Fund accounting services agreement: What you need to know

If you`re involved in managing funds, it`s essential to have a reliable and effective fund accounting services agreement in place. This document outlines the terms and conditions of services provided by accounting firms to manage the financial affairs of a fund or group of funds.

Here are some key points to consider when drafting or reviewing a fund accounting services agreement:

Scope of services

The scope of services provision is one of the most crucial aspects of the agreement. It should specify the exact accounting services provided, including the financial statements and related disclosures. It should also outline additional services like tax compliance, audit support, and consulting services.

Timing of services

The agreement should specify the timing of the services provided. It`s essential to ensure that the accounting services provided keep up with the necessary schedules stipulated by the fund`s charter and regulatory agencies.


Fees are a crucial consideration when contracting out accounting services. Ensure that the agreement is transparent regarding the payment schedule and invoicing procedures. It should also cover the types of costs that the accounting firm may charge, such as travel expenses, audit fees, and other professional services.

Confidentiality and Data Privacy

Confidentiality and data privacy are essential considerations in a fund accounting services agreement. Ensure that the agreement includes confidentiality clauses and data privacy standards. It should cover the management of personal information, including any third-party disclosures, data breaches, and cyber risks.

Termination Clause

The agreement should also include a termination clause. It should stipulate the terms under which the agreement may be terminated. For example, it could be due to non-performance, breach of confidentiality, or any other valid ground for termination.


In conclusion, a well-drafted fund accounting services agreement is critical in managing financial affairs effectively. It should define the scope of services, the timing of services, fees, confidentiality clauses, data privacy standards, and termination clauses. By ensuring that all these aspects are covered, you can safeguard your fund`s financial stability and success.