Schedules of Service
This schedule should be read in conjunction with our standard terms and conditions. The purpose of this schedule to our engagement letter is to set out the basis on which we are to compile unaudited financial information for the business.
Our function as accountant is to act as agent on your behalf in preparing the accounts (income and expenditure account and balance sheet if agreed) of your business. This may involve:
Writing up your books and records from the information and vouchers provided and preparing draft accounts for your approval.
We have agreed that you will be responsible for:
Maintaining records of all receipts and payments of cash.
Maintaining records of invoices issued and received.
Preparing a record of business mileage undertaken in the year.
Preparing a record of hours per month worked at home if you wish to claim for business use of your home.
Preparing details of any loan interest paid.
Preparing details of the following, and reconciling at the year-end if appropriate: stocks and work in progress; fixed assets; amounts owing to creditors; amounts owing by customers; and accruals and prepayments.
You will be responsible, unless otherwise agreed, to maintaining your books and records in a digital format using cloud based bookkeeping software
You will be responsible, unless otherwise agreed to keep the bookkeeping up to date by completing and fully reconciling balances with the bank statements, at least every three months, or as otherwise agreed
Allowing us on-line access to the cloud bookkeeping system
Our report will be based on information gained from you, and we accept no responsibility for any losses arising out of implementing our report. Further, our report requires us to rely substantially on your representations. Therefore we can accept no responsibility for any losses for issues not addressed in our report.
As part of our normal procedures we may request you to provide written confirmation of any oral information and explanations given to us during the course of our work.
Our service to you
We will not be carrying out any audit work as part of this assignment and accordingly will not verify the assets and liabilities of the business, nor the items of expenditure and income. To carry out an audit would entail additional work so that we could report on the truth and fairness of the accounts. We would also like to emphasise that we cannot undertake to discover any shortcomings in your systems or irregularities on the part of your employees.
We have a professional duty to compile accounts that conform with generally accepted accounting principles. Where we identify that the accounts do not conform to accepted accounting principles nor to the specific rules relating to the cash accounting regime we will inform you and suggest amendments be put through the accounts before being published. We have a professional responsibility not to allow our name to be associated with accounts that may be misleading. In extreme cases, where this matter cannot be resolved, we will withdraw from the engagement and notify you in writing.
Limitation of liability
We specifically draw your attention to the limitation of liability paragraphs in our standard terms and conditions which set out the basis on which we limit our liability to you and to others. You should read this in conjunction with the limitation of third party rights paragraphs in our standard terms and conditions which exclude liability to third parties. These are important provisions which you should read and consider carefully.