Purpose, Scope and Output of the Engagement
The firm will provide professional bookkeeping services using a “simple accrual” accounting approach as requested by the client.
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 services 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 purposes 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
- Preparation of cash-basis financial statements (our reports are prepared on an accrual basis only)
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 additional billing for routine communication.
Hourly Billing for Services with an Undefined Scope
In certain 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 of the expected time will be provided where possible.
- Clients will be informed of the time spent before the final invoice is issued.
If the scope becomes more 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 unlimited communication regarding matters within the agreed scope.
However, if questions or requests require additional research, analysis, or services beyond the scope of this agreement, those services will be quoted before work begins.
Additional services will only commence after:
- Scope has been agreed
- Pricing has been confirmed
- The updated service request has been accepted
Examples of additional services may include, but are not limited to:
- Audit support
- Amended tax returns
- Financial statements required for lending purposes
- Additional financial reporting requirements
Service and Price Guarantee
The firm stands behind the quality and professionalism of its services.
If a client is not satisfied with the services provided, the client is encouraged to raise the concern 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 month’s written notice. Invoices are issued at the beginning of each month in advance of services.
Cancellation of software subscriptions requires two months’ written notice to ensure the final accounting period can be completed while access to the relevant applications remains active.
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 any software subscription costs associated with those systems.
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 not providing requested information or documentation, the firm’s liability will be limited to zero.
Non-Accounting and Financial Advice
The firm does not provide legal, tax, or financial advisory services within this engagement.
Any comments made regarding business operations, legal matters, taxation, or investments should be interpreted as general observations and not professional advice.
Clients should seek advice from appropriately qualified professionals for matters requiring specialized expertise.
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 documents and personnel as required
- Disclosing all material financial information
Any advice provided by the firm is based solely on the information supplied by the client and on 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 Bookkeeping Services
The following services are included within the monthly bookkeeping engagement.
Transaction Reconciliation and Classification
- Bank reconciliations for all banking, credit card, and merchant 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 data aggregation tools
- Processing supplier invoices and receipts uploaded through document capture tools such as Dext
- Maintenance of bank and financial account feeds into the accounting system
- Troubleshooting and bookkeeping support
Simple Accrual Accounting
- Cost of Goods Sold estimated through accounting integration tools
- Adjustments based on inventory valuation data when available
Month-End Accounting Tasks
Where required, month-end work may include:
- Loan amortisation entries separating principal and interest
- Fixed asset register maintenance and depreciation journals
- Shareholder loan reconciliations
- Recording payroll summaries
- Inventory adjustments to reconcile accounting records with inventory system values
- Monthly trial balance review
Financial Reporting
Financial reporting may include:
- An eCommerce-focused income statement
- Balance sheet
- Additional reports available within the accounting system (such as payables or cash flow reports where applicable)
Reconciliations and Controls
- Reconciliation to bank statements where required
- Reconciliation to sales channel reports
- Reconciliation to inventory valuations 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.
These factors include:
- Volume of accounting transactions
- Number of financial accounts (bank, credit card, merchant processors)
- Number of sales channels and online stores
- Number of loans
- Number of currencies used for trading
- Volume of SKUs managed
- Monthly revenue and expense levels
- Total monthly order volume
- Number of jurisdictions where sales tax is applicable
- Countries or regions where VAT or GST registration exists
New sales channels may require setup fees and adjustments to monthly service pricing.
Services Not Included
The following services are not included in standard bookkeeping services:
- Inventory management, costing, or operational inventory control
- Payroll calculations or payroll tax filings
- Sales tax or VAT compliance services
- Income tax preparation or filing
- CFO services such as forecasting or advanced financial analysis
These services may be available 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.