Purpose, Scope and Output of the Engagement

The firm will provide professional bookkeeping services for the client’s agency business as requested.

The details of the services included in this agreement are described in Schedule 1, which outlines the bookkeeping services provided. Schedule 2 describes factors that may constitute a change of scope and therefore require a change in pricing.

Period of Engagement

This monthly bookkeeping engagement commences upon acceptance of the agreement and remains valid until the agreement is terminated.

What We Won’t Do – Disclaimer

The accounting and reporting formats provided are for internal management use only.

If external financial statements compliant with US GAAP, IFRS, or other formal reporting standards are required, these are explicitly excluded from this engagement unless separately agreed.

No audit or verification of the data submitted by the client will be performed, and no opinion will be expressed on the financial information. Reports provided may contain portions of financial information but are intended for internal management use only.

Unless separately engaged, services do not include:

  • External financial statement preparation for statutory reporting
  • Compilation, review, or audit of financial information
  • Legal advice
  • Tax advice
  • Government compliance services

The engagement is not designed to discover errors, misrepresentation, fraud, illegal acts, or theft, and no procedures have been included to detect such activities.

Fixed Price Agreements for Ongoing Services

Traditional professional services billing has often relied on hourly billing. This model rewards inefficiency because the longer a task takes, the more the service provider is paid.

To avoid this misalignment, services are provided using fixed price agreements wherever possible.

This model ensures:

  • Clients know the cost of services in advance
  • Work scope is clearly defined before work begins
  • Additional services outside the agreed scope are discussed and approved before work commences

If additional services are required outside the agreed scope, a written proposal will be issued before work begins.

Fixed price agreements encourage efficiency, transparency, and open communication. Clients are encouraged to ask questions and communicate regularly without concern about routine communication resulting in additional charges.

Hourly Billing for Services with an Undefined Scope

In some cases where the scope of services cannot reasonably be defined in advance, services may be billed based on hourly rates.

Where hourly billing applies:

  • An estimate will be provided where possible
  • The client will be informed of time spent before the final invoice is issued

If the scope becomes more predictable, the engagement may be converted to a fixed price agreement.

Typical hourly rates are as follows:

  • Richard $380/hour
  • Technical & Inventory Specialist $250/hour
  • Client Managers $100/hour
  • Senior accountant $60/hour
  • Junior accountant $40/hour

Unanticipated Services

The engagement includes communication relating to matters within the agreed scope.

However, if a question or request requires additional research, analysis, or services beyond the scope of this agreement, the additional work will be quoted before work begins.

Additional services will only commence after:

  • Scope is agreed
  • Pricing is confirmed
  • The updated service request has been accepted

Examples of additional services may include:

  • Audit support
  • Amended tax returns
  • Financial statements required for lending purposes
  • Additional reporting requirements

Service and Price Guarantee

The firm stands behind the quality and professionalism of its services.

If a client is dissatisfied with the services provided, the concern should be raised promptly so it can be addressed.

If a satisfactory resolution cannot be reached, both parties will work toward a mutually agreed adjustment regarding payment for the services performed.

Monthly service agreements may be cancelled with one calendar month’s written notice.

Invoices are issued within the first three days of each month in advance of services.

Ownership of Documents

All original documents provided by the client remain the property of the client.

The firm may retain copies of documents for record-keeping purposes.

Accounting system accounts, data, and connected applications remain the property of the client. The client remains responsible for software subscription charges, including any part-month costs arising from transfer of ownership or cancellation of subscriptions managed as part of the engagement.

Limitation of Liability

The firm’s liability for any claim arising from this engagement is limited to a maximum of two months of the current service package fees.

If bookkeeping services cannot be completed due to the client failing to provide requested information or documentation, the firm’s liability will be limited to zero.

Non-Accounting Advice and Financial Advice

The firm does not provide legal, tax, or financial advisory services within this engagement.

The firm may share practical knowledge based on experience implementing bookkeeping systems, but any advice relating to legal, tax, financial, or specialist matters should be confirmed with appropriately qualified professionals.

Any comments on legal, business operations, or investment matters should be interpreted as general observations and not specialist professional advice.

Client Responsibilities

Information obtained during the engagement is subject to strict confidentiality and will not be disclosed except:

  • As required by law
  • With the client’s written consent

The client is responsible for:

  • The accuracy, completeness, and reliability of all records and information provided
  • Providing access to relevant individuals and documents as required
  • Disclosing all material financial information

Any advice provided is based solely on the information supplied by the client and the understanding of the client’s specific circumstances.

Confirmation of Terms

Acceptance of the engagement confirms agreement with the terms outlined in this document.

Acceptance may occur through:

  • Digital acceptance of the engagement terms, or
  • Payment of the first invoice

These terms remain effective for future years unless updated terms are issued.

Schedule 1 – Scope of Services

To avoid confusion and expectation gaps, the following defines the scope of work included within the monthly bookkeeping engagement.

Transaction Reconciliation and Classification

  • Bank reconciliations for all banking, credit card, and merchant payment accounts, including PayPal, Stripe, and similar platforms
  • Allocation of imported bank transactions to appropriate accounts, bills, invoices, or transfers
  • Monthly classification of revenue transactions from the client’s source of invoice truth
  • Review and processing of supplier invoices and receipts uploaded through document capture tools such as Dext
  • Paperless payables processing through document capture tools and the accounting system
  • Maintenance of bank and financial account feeds into the accounting system
  • Troubleshooting and bookkeeping support

Month-End Accounting Work

Where required, month-end tasks may include:

  • Loan amortisation entries separating principal and interest
  • Fixed asset register maintenance and depreciation journals
  • Shareholder loan reconciliations
  • Recording payroll summaries
  • Review of the monthly trial balance

Financial Reporting

Reports may include:

  • Income statement
  • Balance sheet
  • Other reports available within the accounting system, including payables and historical cash flow reports where required

Reconciliations and Controls

  • Reconciliation to bank statements where required
  • Reconciliation to sales reports and related source data

Schedule 2 – Factors That May Change Scope and Pricing

The following factors may impact pricing and scope of services.

If these variables change materially, service pricing may be adjusted after discussion with the client.

Factors include:

  • Volume of accounting transactions
  • Number of financial accounts, including bank, credit card, merchant processor, and similar accounts
  • Number of clients with individual invoices where invoicing is not automated or requires manual input
  • Number of loans, including shareholder loans
  • Number of currencies used for trading, purchasing, or selling
  • Number of jurisdictions where sales tax registration applies
  • Countries or regions where VAT or GST registration exists

Where multi-currency accounting applies, additional software and increased accounting time may be required.

Services Not Included

The following services are not included in the standard agency bookkeeping engagement:

  1. Work in progress accounting as a current asset on a per-project basis, unless separately engaged
  2. Payroll calculations, filings, and returns
  3. Sales tax and VAT compliance services
  4. Income tax preparation or filing
  5. City or state tax compliance services
  6. CFO services such as forecasting or advanced financial analysis

These services may be provided separately if required.

Pricing Review

Pricing and scope are reviewed every six months.

This review ensures that service levels, transaction volumes, and operational complexity remain aligned with the agreed service package.

The goal is to maintain a sustainable relationship that allows the firm to deliver high-quality services at a fair and transparent price.