Purpose, Scope and Output of the Engagement
The firm will provide professional bookkeeping services using a “simple accrual” accounting approach, together with operational support related to the client’s inventory system where required.
The details of the services included in this agreement are described in Schedule 1, which outlines the bookkeeping services provided as well as the operational inputs required to manage inventory systems, related data, and reporting.
Schedule 2 describes factors that may constitute a change of scope and therefore require a change in pricing.
Period of Engagement
This monthly bookkeeping and inventory system operations engagement commences upon acceptance of this 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 statutory reporting frameworks are required, they 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 accounting information. Reports provided may contain 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, misrepresentations, 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 historically relied on hourly billing. This model often rewards inefficiency because the longer a task takes, the higher the bill.
To avoid this misalignment, services are provided using fixed price agreements wherever possible.
This approach ensures:
- Clients know the cost of services in advance
- Scope is clearly defined before work begins
- Additional services outside the agreed scope are discussed and approved before work begins
If new work is required outside the scope of the existing agreement, a written proposal will be issued before services commence.
Fixed price agreements also encourage efficiency and open communication. Clients are encouraged to contact the firm with questions without concern about being billed for routine communication.
Hourly Billing for Services with an Undefined Scope
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
- Clients will be informed of time spent before the final invoice is issued
If the scope becomes predictable over time, 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 services within the agreed scope.
However, if a question or request requires additional research, analysis, or services beyond the agreed scope, 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 or financing 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 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 services performed.
Monthly service agreements may be cancelled with six months’ written notice due to the significant investment in staffing, systems, and operational resources required for each client engagement.
Cancellation of software subscriptions requires an additional month’s written notice to ensure the final accounting period can be completed while access to the relevant applications remains active.
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 and usage-based application costs.
Where applications or tools charge based on order volume, system connections, or other usage metrics, these charges remain the responsibility of the client and will be passed through as incurred.
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 operational knowledge based on experience implementing eCommerce bookkeeping and inventory systems, but any advice relating to legal, tax, financial, or investment matters should be confirmed with appropriately qualified professionals.
Any comments on legal, operational, 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 accounting 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 and inventory systems engagement.
For inventory-focused engagements, this may include operational ownership of certain data inputs and system design elements related to inventory management.
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
- Classification of revenue transactions and sales channel expenses using accounting aggregation tools
- Review and processing of purchase orders through to supplier invoices and bills within both the inventory system and accounting system
- Processing supplier invoices and receipts uploaded through document capture tools such as Dext
- Calculation of landed costs where required
- Maintenance of bank and financial account feeds into the accounting system
- Troubleshooting and bookkeeping support
Full Accrual – Inventory First Accounting
Under this approach:
- Cost of Goods Sold is driven from the inventory system
- Inventory valuation data is used to ensure accurate accounting records
- Adjustments are recorded within the accounting system to reconcile inventory values
Month-End Accounting Work
Where required, month-end tasks may include:
- Loan amortisation entries separating interest and principal
- Fixed asset register maintenance and depreciation journals
- Shareholder loan reconciliations
- Recording payroll summaries
- Inventory adjustments to reconcile accounting and inventory system values
- Review of the monthly trial balance
Financial Reporting
Reports may include:
- eCommerce-specific income statement
- Balance sheet
- Additional accounting system reports such as payables or cash flow reports
Reconciliations and Controls
- Reconciliation to bank statements where required
- Reconciliation to sales channel reports
- Reconciliation to inventory valuation data provided by the client
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 (bank, credit card, merchant processors)
- Number of sales channels or online stores
- Number of loans
- Number of currencies used for trading
- Number of SKUs managed across sales channels
- Revenue and expense levels
- Monthly order volume
- Number of jurisdictions where sales tax applies
- Countries or regions where VAT or GST registrations exist
New sales channels may require additional setup work and adjustments to the monthly service fee.
Services Not Included
The following services are not included in the bookkeeping and inventory systems engagement:
- Payroll calculations or payroll tax filings
- Sales tax or VAT compliance services
- Income tax preparation or filing
- City or state tax compliance services
- 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, operational complexity, and transaction volumes 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.