Bookkeeping

The purpose of this engagement letter is to set out the basis on which we are to compile the unaudited bookkeeping for your business.

1 Your responsibilities

1.1 You will provide us with the following information to enable us to carry out the bookkeeping work:
– Sales invoices (entered onto your online accounting software);
– Purchase invoices and receipts;
– Bank statements (in CSV format with the balance shown, or the balance agreed with software bank feeds);
– Details of cash and bank payments;
– Details of cash and bank receipts;
– Stock and work-in-progress details at the end of each month;
– Access to your online accounting records;
– A record of the amounts owed to the business at the end of each month;
– A record of the amounts owed by the business at the end of each month;
– A list of accruals at the end of each month;
– A list of prepayments at the end of each month;
– A list of amounts recoverable on contracts at the end of each month.

1.2 You agree to provide us with complete and accurate information. Where you become aware that information provided by you has altered, or circumstances have changed, you are responsible for advising us of this as soon as possible. We are not responsible for advice or reports provided that would have been altered had we been aware of the full facts.

2 Our responsibilities

2.1 We will maintain your accounting records using appropriate computer software. We have explained to you verbally what this means.

2.2 From the information and explanations you supply we will keep the following records:
– Records of bank receipts and payments;
– Records of cash receipts and payments;
– Reconciliations of the cash and bank control accounts;
– A record of purchases;
– A record of amounts owed to the business;
– A record of amounts owed by the business.

2.3 We would like to emphasise that we cannot undertake to discover any shortcomings in your systems or any irregularities on the part of your employees. However, we will advise you if we come across anything of this nature in the course of preparing the accounts.

2.4 Our work will not be an audit of the financial information in accordance with International Standards on Auditing (UK). Consequently, our work will not provide any assurance that the accounting records or the financial information are free from material misstatement, whether caused by fraud, other irregularities or error and cannot be relied on to identify weaknesses in internal controls.

2.5 Since we have not carried out an audit, nor confirmed in any way the accuracy or reasonableness of the accounting records maintained by you, we are unable to provide any assurance as to whether the financial information that we prepare from those records presents a true and fair view. We will, however, advise you on whether your records are adequate for the preparation of the financial information and recommend improvements.

2.6 We will process up to the number of transactions per month as indicated on our Engagement Summary. If you require us to process more transactions per month than the current allowance, we will need to increase our fee. One transaction is the equivalent of either: one bank/cash/card transaction categorised to one category or matched to existing transactions; one category on a bill uploaded/entered; one journal line.

Engagement Letters