Engagement and Terms & Conditions is an agreement between us (the service provider) and you (the client). This letter will serve as an ongoing outline of our business relationship unless there is a change in service requirements of your accounting needs. Engagement Terms and Conditions are customary across both the accounting and bookkeeping industries, and help to make clear a number of key aspects of the professional relationship, such as:

The parties to the engagement;
The scope of the engagement;
The period of the engagement;
The obligations of each party;
Privacy and confidentiality;
Pricing of services;
Ownership of documents and software.

Who You Are Engaging

The entity which you are engaging for bookkeeping and BAS services is Nicole Meredith and the team of Bright Cloud Bookkeeping, which holds BAS Agent registration number 25176319.

As required by the Tax Agent Services Act, we hold Professional Indemnity Insurance to the level specified by the Tax Practitioners Board (TPB). As well as the following professional memberships:

Member of Australian Bookkeepers Network www.austbook.net

You can view our website www.brightcloudbookkeeping.com for further information about our contact details, and service offerings.

Scope of Engagement

Our engagement extends to all or some of the following services:

○ Completing the setup of an accounting software file for your business including chart of accounts including assignment of default GST tax codes.

○ Payroll configuration

○ Payroll attendances at weekly/fortnightly/monthly intervals

○ Annual Preparation of PAYG Payment Summaries and Annual ATO Reporting

○ Preparation of the financial year­end workpapers for your tax agent

○ Reconciliation of bank and credit card accounts

○ Reconciliation of debtors, creditors and inventory subsidiary ledgers

○ Posting of journal entries where necessary

○ Weekly/fortnightly/monthly/quarterly financial Statements

○ Xero training

○ Xero implementation

○ Xero Payroll implementation and training

○ Cash Flow Statements, Profit & Loss Forecasts and Budgets;

○ Telephone, on site and email­based support

○ BAS And IAS Lodgement

○ Dealing with the ATO on your behalf on matters relating to BAS Agent Services.

To be clear, our engagement does not extend to the following services:

○ Preparation of Income Tax Returns

○ Preparation of Fringe Benefits Tax Returns

○ Variation of PAYG Instalments and FBT Instalments that appear on Business Activity

Statements;

○ Technical advice on matters of income tax or fringe benefits tax law

○ Dealing with the ATO on your behalf on matters relating to Tax Agent Services.

In terms of the remaining services above, and for any other matters that I advise as being beyond my sphere of expertise, I recommend that you contact your registered Tax Agent.

Credit Terms

Fixed price agreements are paid via credit card payment on the day of sign up and then on the same day of the month the same day of the following month for the extent of the subscription.

If there is a need to obtain owed funds via a Collection Agency or Solicitor the client will bear the cost associated.

We are committed to delivering value ­for ­money and our prices will be periodically reviewed in line with market forces and CPI. We will advise you in advance if our prices will be changing.

Cancellation Policy

Subscribers may cancel their Bright Cloud Bookkeeping subscription at any point in time. Upon cancellation, Bright Cloud Bookkeeping will immediately cancel their access and/or subscriptions with 3rd party providers.

Bookkeeping Issues That Relate to the Period of Time Prior to Our Engagement

We will not be responsible for the accuracy of information entered prior to the commencement of our engagement. Sometimes, our ability to perform the services will be hindered by the inaccuracy or incompleteness of information prior to the commencement of our engagement, with some common examples being:

Bank accounts, credit cards or loan accounts that have been unreconciled for a period of time;
Bank accounts, credit cards or loan accounts that harbour erroneous unreconciled deposits and payments;
Debtor, Creditor and Inventory Subsidiary Ledgers that have not been agreed to the general ledger for a period of time;
Outstanding Business Activity Statements that require lodgement;
GST and PAYG control accounts in the general ledger which harbour unexplained opening balances;
Chart of accounts that have been poorly structured.

If we identify any such issues, we will discuss these with you. Broadly speaking, we can adopt two approaches:

1. Leave the issue for your tax agent to deal with. (Where the issue relates to problematic general ledger or subsidiary ledger balances, this usually entails transferring problem amounts to a “suspense” account); or

2. Investigate and resolve the issue for you.

If you choose the second option, we will be only too pleased to assist, however our time in resolving the issues will be fully and separately charged as separate assignments in their own right.

Your Obligations Under this Agreement

Our conduct as a BAS Agent is regulated by the Tax Practitioners Board (TPB) and by the Code of Professional Conduct (Code), a legislated code that sets out the professional and ethical standards required of tax agents and BAS agents. The Code imposes a number of core principles on BAS Agents, including:

Honesty and integrity;
Independence;
Confidentiality;
Competence;
Other responsibilities, including upholding the proper administration of taxation laws, maintaining professional indemnity insurance, and responding to requests and directions from the TPB.

By visiting the TPB’s web site at www.tpb.gov.a, you can find out further information about the TPB and the Code. You can also access an online BAS Agent Register where you can view our BAS Agent registration details.

It is your responsibility to make all relevant information available to us in a complete and timely manner. We will not be liable for any late lodgement penalties, fines or GIC incurred by the Australian Taxation Office if timeframes are not met due to outstanding queries.

While we may seek clarification of some matters where there is a need to do so, we will not audit the information provided by you.

When recording transactions:

We will assume that all income is reflected in the records that you provide to us, or provide us with access to. If income is received in other ways, it will be your obligation to make us aware of this; we will assume that all capital purchases and expenses can be substantiated, and in the case of any such items costing greater than $82.50, that a valid Tax Invoice is held, however we may request to sight particular invoices to assist with the correct posting of transactions.

There are civil penalties for false and misleading statements made to the taxation authorities or for actions which obstruct the proper administration of taxation laws.

As our firm is not being engaged to conduct a statutory audit of the financial records, we will not express an opinion as to the truth and fairness of the financial statements.

Privacy and Confidentiality

A Copy of Bright Cloud Bookkeeping Privacy Policy is available on our website

www.brightcloudbookkeeping.com

Ownership of Documents and Software

The Tax Practitioners Board has provided practical assistance and explanation on the subject of claiming a lien over client property in instances where there may be outstanding fees owing by the client. My firm has adopted their recommendations.

The following items are said to likely belong to the client irrespective of whether there are outstanding fees owing:

● source documents – e.g. ledgers, receipts, invoices, journals;

● correspondence between the ATO and the client;

● software licensed in the client’s name.

The following items are said to likely belong to the client only where there are no outstanding fees owing for labour expended in respect to these items:

● letters of advice, books of accounts, returns and financial statements;

● working documents would not belong to the client unless the client specifically instructed the agent to prepare such drafts for them and had paid for them.

BAS Services:

An authority form will be emailed to you quarterly to authorise Bright Cloud Bookkeeping as the BAS Agent appointed to lodge the Activity Statement, this must be signed and emailed back to ensure lodgement.