Bookkeeping Terms and Conditions

Bookkeeping Terms & Conditions

The terms and conditions shown are a general statement under which Parish Accounts Ltd Registered company in England and Wales number 12271726 and its employees will perform its duties when carrying out bookkeeping services. They should be read in conjunction with the service agreement. The Company shall mean Parish Accounts Ltd Registered company in England and Wales number 12271726. Agree shall mean agreed between the client and the company.

  • Fees, Payments and Cancellations

Payment and fees should be made in full by the due date, 7 days from the date shown on the invoice. The client agrees to pay the company the agreed fee and any disbursements.

The agreed fee is based upon the services carried out and the information provided by the client at the time of tendering and subject to a quarterly review.  If details have been provided by the client and it becomes apparent that the details are not reflective of the works then additional fees may apply.

  • Fees and quotations are subject to fluctuations, are exclusive of VAT and are available for acceptance for a period of 7 days.
  • In the event of termination of the agreement, for whatever reason, the client will be responsible for paying all fees due to the company, including costs, expenses and disbursements incurred by the company on behalf of the client up to and including any notice period.
  • Any postage, stationery or sundry items purchased on behalf of the client will be charged at cost.
  • The price for the work and the applicable hourly rates will be laid out in the letter of engagement and/or service agreement.  Unless otherwise stated in the letter of engagement, the price and/or hourly rates will not include travelling expenses for journeys, postage, or sundry expenses incurred in the course of the work.
  • The client agrees to pay £5 invoice processing fee per invoice. This is to cover banking charges and card processing fees.
  • Late Payments

In the event of late payments, the company reserve the right to charge a fixed late payment fee of £45.00 plus interest on all outstanding amounts at base rate plus 8% per calendar month, or part thereof from the last date that payment was due to the date payment is made.

Data and documents remain the property of the company until full and final payment is received.

  • Data

All data produced by the company whilst performing its duties for the client, remain the property of the company. The client can apply to purchase any data. The cost and willingness to release any data remains at the discretion of the company.

  • Set off

The company offers the client no right of set off.

  • Privacy

In accordance with the Data Protection Act the company and its employees will treat the client’s personal information as private and confidential. The client however should be aware that their contact details may be used during the process of providing the companies services on behalf of the client.

  • The company and its employees cannot be held responsible for the security of any goods, documents or premises and its contents.
  • Abuse

Should any employee of the company receive any form of physical or verbal abuse then the company’s services would cease immediately and the client will be responsible for paying all fees due to the company, including costs, expenses and disbursements incurred at the time of termination.

  • Postage

Where it is necessary to post items relating to the work to the client or a third party, the company will use a tracked and signed for service.  We recommend that the client uses a similar service when posting any items to the company.  The company will not be held liable for loss, damage or theft of any items sent to the client whilst they are going through the postal service.

  • Miscellaneous
  • The client will be provided with a copy of the Terms and Conditions. The client is deemed to have accepted the contents of them.
  • The company shall not be liable for any losses or damage suffered by the client as a result of the activities of the company, the contents of any reports and documents and its obligations or events of force majeure.
  • To enable the company to carry out its duties the client agrees to provide the company with the required records and related financial information within 6 months of the year end and queries raised must be answered promptly. Other specific deadlines are identified within the service agreement. The client is responsible for ensuring all paperwork is delivered in a timely fashion.

Full Terms and Conditions

The standard terms of engagement with the standard terms of Business apply to the client engagement letter, in respect to the individual services obtained.

Any changes to the following terms will be expressed in writing.

Summary

Section 1: Standard terms of engagement

  1. Bookkeeping
  2. Management accounts
  3. Annual accounts – sole traders/partnerships
  4. Annual accounts – limited companies
  5. VAT returns
  6. Online accounting service
  7. Other services
  8. Fees and terms of payment
  9. Termination of contract
  10. Agreement of terms

Section 2: Standard terms of Business

Section 1: Standard terms of engagement

  1. Bookkeeping

It is agreed that we should carry out the following services or as outlined in the service agreement:

(a)        Keep the records of receipts, payments and balances in electronic format, client will retain original paper records. It is the client’s responsibility to retain original paper records for up to six years following the respective tax year end date.

(b)        Reconcile the balances monthly with the bank statements

(c)        Post and balance the purchase and sales ledgers

(d)        Extract a detailed list of ledger balances

(f)         Complete the postings to the nominal ledger

(g)        Prepare the accounts for approval by yourselves and/or client’s nominated accountant.

You have agreed that you or your staff will:

(h)        Prepare details of the annual stocktaking and work in progress.

You/your management are responsible for the detection of irregularities and fraud. We would emphasise that we cannot undertake to discover any shortcomings in your systems or any irregularities on the part of your employees or others, although we will advise you of any such circumstances that we encounter.

  1. Management accounts

We understand that you require us to prepare the management accounts of your business.

This involves us in completing the writing up of your books and records, insofar as they are incomplete when presented to us, from the information and explanations supplied to us and preparing draft accounts therefrom for your approval.

We understand that you have agreed that your staff will be responsible for:

(a)        Maintaining records of all receipts and payments of cash

(b)        Reconciling cash book balances monthly with the bank statements

(c)        Posting and balancing the purchase and sales ledgers

(d)        Extracting a detailed list of ledger balances.

You will also provide estimates of any stocks or assets at the end of each period

You understand that we will not be carrying out an audit 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 require additional work to comply with generally accepted auditing standards which we are not authorised to carry out.

We would emphasise that we cannot undertake to discover any shortcomings in your systems or any irregularities on the part of your employees or others, although we will advise you of any such circumstances that we encounter in preparing your accounts.

The accounts are prepared for your exclusive use within your business. They should not be shown to any other party without our prior consent. To ensure that anyone reading the accounts is aware that we have not carried out an audit, we will annex to the accounts a short report. This report must remain attached to any accounts shown to any other parties.

  1. Annual accounts – sole traders/partnerships

Your responsibility for the preparation of accounts

  1. You have undertaken to make available to us, as and when required, all the accounting records and related financial information necessary for the compilation of the accounts. You will make full disclosure to us of all relevant information. The accounts need to be approved by you before we are able to issue our report.
  2. You are responsible for ensuring that, to the best of your knowledge and belief, financial information, whether used by the business or for the accounts, is reliable. You are also responsible for ensuring that the activities of the business are conducted honestly and that its assets are safeguarded, and for establishing arrangements designed to deter fraudulent or other dishonest conduct and to detect any that occur.
  3. You are responsible for ensuring that the business complies with the laws and regulations applicable to its activities, and for establishing arrangements designed to prevent any non-compliance with laws and regulations and to detect any that occur.

Our responsibilities for the preparation of accounts

  1. We will compile your annual accounts based on the accounting records (maintained by you) and the information and explanations given to us by you. We shall prepare draft annual accounts for your approval.
  2. We will advise you as to the adequacy of your records for preparation of the annual accounts and make recommendations for improvements which we consider necessary. We shall not be responsible if, as a result of you not taking our advice, you incur losses or penalties.
  3. We will use reasonable skill and care in the preparation of your accounts but will not be responsible for errors arising from incorrect information supplied by you.
  4. We will report, with any variations that we consider may be necessary, that in accordance with your instructions and in order to assist you to fulfil your responsibilities, we have compiled, without carrying out an audit, the accounts from your accounting records and from the information and explanations supplied to us.
  5. We have a professional duty to compile accounts which conform to generally accepted accounting principles. Where we identify that the accounts do not conform to accepted accounting principles, or if the accounting policies adopted is not immediately apparent, this will be made clear in our report, if it is not clear in the accounts
  1. Annual accounts – limited companies

Responsibilities of directors

As director of the company, under the Companies Acts you are responsible for:

  • Ensuring that the company maintains proper accounting records and for preparing accounts
  • Determining whether for any reason the exemption is not available in respect of the period.

You will keep records of sales invoices, purchase invoices, receipts and payments, together with any other documents relating to the company’s transactions and activities. It will also be necessary for you to provide a record of stock at the company’s year-end.

You are responsible for any previous accounts or tax returns that have not been completed by us and the filing at HMRC and Companies House of any paperwork necessary to fulfil your accounting duties each year.

A private company is required to file its accounts at Companies House within 10 months of the year end. The company will be liable to a fine if it fails to do so. In order to avoid this, we will produce statutory accounts, suitable for filing, within the required period, provided all your records are complete and presented to us within six months of the year end, and all subsequent queries are promptly and satisfactorily answered.

We have agreed to act as your agent and to:

  1. a)    submit the accounts to the Registrar of Companies
  2. b)    complete and submit the company’s annual return
  3. c)    complete and submit any other forms required by law to be filed at Companies House, provided that you keep us fully informed of any relevant changes or events which are required to be notified to Companies House, within one week of the change or event
  4. d)    Maintain the statutory books.

Responsibility of YOUR accountants

In relation to the accounts, your nominated accountant will prepare the company’s accounts on the basis of the information that is provided to us that we give to your nominated accountant. Your accountant will also draft the accounts in accordance with the provisions of the Companies Act, and related Accounting Standards for approval by the Board.

Should our work lead us to conclude that the company is not entitled to exemption from an audit of the accounts, or should we be unable to reach a conclusion on this matter, then we will advise you of this.

As per the engagement letter;

It was agreed that we should carry out the following accounting and other services:

  1. a)    write up the accounting records of the company insofar as they are incomplete when presented to us
  2. b)    complete the postings to the nominal ledger
  3. c)     Prepare the accounts for approval by yourselves and your nominated accountant.

You have agreed that you or your staff will:

  1. keep the records of receipts and balances
  2. help us with any queries over the phone or during visit to your site when reconcile the balances monthly with the bank statements
  3. help us with any queries over the phone or during visit to post and balance the purchase and sales ledgers
  4. help us with any queries over the phone or during visit to extract a detailed list of ledger balances
  5. Prepare details of the annual stocktaking, suitably priced and extended in a form which will enable us to verify the prices readily by reference to suppliers’ invoices.

or

  1. Provide us with a copy of the valuation produced by your independent stock takers.

and

  1. Prepare details of work-in-progress at the accounting date and make available to us the documents and other information from which the statement is compiled.

You/your management are responsible for the detection of irregularities and fraud. We would emphasise that we cannot undertake to discover any shortcomings in your systems or any irregularities on the part of your employees or others, although we will advise you of any such circumstances that we encounter in preparing your accounts, unless prohibited from doing so by the Anti Money Laundering Legislation.

We will report, with any variations that we consider may be necessary, that in accordance with your instructions and in order to assist you to fulfil your responsibilities, we have compiled, without carrying out an audit, the accounts from your accounting records and from the information and explanations supplied to us.

We have a professional duty to compile accounts which conform to generally accepted accounting principles. Furthermore, the accounts of a limited company are required to comply with the Companies Acts and applicable accounting standards. Where we identify that the accounts do not conform to accepted accounting principles, or if the accounting policies adopted is not immediately apparent, this will be made clear in our report, if it is not clear in the accounts.

  1. VAT returns

You have asked us to undertake the completion of your VAT returns. We cannot be held responsible for any penalties or default surcharges arising from the late submission of VAT returns. However, we will endeavour to meet the relevant deadlines if we receive all the company’s VAT records within 14 days of the end of the VAT return period. You have undertaken that you/your staff will ensure that:

(a)        All relevant VAT records are forwarded to us within 14 days of the end of the VAT return period

(b)        Valid VAT invoices are received for all payments where VAT is being reclaimed

(c)        The VAT rating of supplies is correctly dealt with, i.e. between positive and zero rates and exempt supplies

(d)        We are notified in writing of any positive-rated own consumption

(e)        Any input VAT on non-business expenditure is clearly marked on supporting invoices

(f)         We are notified each quarter of any payments to or for the benefit of directors or staff for fuel used for private mileage, together with the business mileage for each such person, for each quarter

(g)        All supplies made by the business are shown in the records made available to us.

It should be understood that our appointment as your agent does not absolve the company or its directors from their statutory responsibilities. We would draw your attention to the strict rules and time limits for the submission of such returns and the substantial penalties which may arise if these are not observed. It is therefore essential that we receive full information from you promptly to enable us to ensure that the returns are made on a timely basis. Completed returns will be sent to you for approval and signature prior to submission on the company’s behalf

  1. Online Accounting and Banking service

We will at times require remote access to your computer system to fulfil the agreed work e.g. Sage software and on line banking. You agree that if something should arise with data files or your computer which would require additional assistance or security breach that this is not the fault of Parish Accounts Ltd and you agree to release and indemnify us of any and all claims, legal litigation, legal costs, damages, or any and all losses.

  1. Other Services

There are other areas of where we can be of service, such as business plans, project management. Please get in touch to discuss.

  1. Fees and Terms of payment

The monthly pricing plan fees, as set out in the engagement letter and service agreement, shall be paid by the Client monthly or weekly in advance. Prices are quoted in UK pounds sterling and are exclusive of VAT.

Parish Accounts Ltd request that all clients set up a direct debit or BACS for payment and no payment shall be deemed to have been received until Parish Accounts Ltd has received cleared funds.

The Client shall make all payments due under this Agreement in full without any deduction whether by way of set-off, counterclaim, discount, abatement or otherwise unless the Client has a valid court order requiring an amount equal to such deduction to be paid by Parish Accounts Ltd to the Client.

If the Client is making an annual payment for the service then the full annual payment is payable up front on commencement of the service.

In relation to works which generate an invoice payment is due within 7 days of the date shown on the invoice.

If additional work is completed that is not part of the Service then Parish Accounts Ltd will notify the approx. cost initially and all payments will be due no later than 7 days after date of invoice.

The Directors of the client company jointly and severally guarantee personally that all fees will be paid within the payment terms. 

  1. Termination of contract

Parish Accounts Ltd reserves the right to terminate the Service if the Client commits a breach of these Terms and Conditions, or if payment of the Service is not paid on time or for any other reason. Any termination will be sent in writing to the Client giving one month’s notice and no refund will be payable by us for any payments made. If after, one month’s notice the issue has not been resolved, Parish Accounts Ltd will take action to terminate all activities involving the Service and disengage ourselves as your Agent.

The Client can terminate the Service at any time by contacting Parish Accounts Ltd. No further payment will be taken from the Client unless it is too late to stop the direct debit and no refund will be given from fees already charged. Following cancellation of the Service, Parish Accounts Ltd will have no further responsibilities in relation to the preparation or filing of the Clients accounting requirements.

  1. Agreement of Terms

The terms set out in this page and our Standard Terms of Business below shall take effect immediately upon issue of the engagement letter and or commencement of works, whichever is the earlier.

Once it has been agreed, the engagement letter and the Standard Terms of Business below will remain effective until they are replaced. We shall be grateful if you could confirm your agreement to these terms by signing the engagement letter and returning it to us immediately.

The following standard terms of business apply to all engagements accepted by Parish Accounts Ltd. All work carried out is subject to these terms except where changes are expressly agreed in writing. 

Section 2: Standard terms of Business

Investment Services

We are not authorised by the Financial Services Authority to conduct Investment Business. If you require investment business services, we will refer you to a firm authorised by the Financial Services Authority.

Professional Obligations

Where you give us confidential information, we shall at all times keep it confidential, except as required by law or as provided for in regulatory, ethical or other professional pronouncements applicable to this engagement.

Anti-money laundering legislation

All accountants must comply with the duties imposed by the Proceeds of Crime Act 2002, the Terrorism Act 2000 and the Money Laundering Regulations 2007 (the Anti-Money Laundering Legislation), which are intended to inhibit the activities of terrorists and other criminals by denying them access to technical expertise. If we fail to perform these duties, we risk imprisonment.

Before we accept your instructions, we may need to obtain ‘satisfactory evidence’ to confirm your identity. In certain circumstances, we may need to obtain evidence confirming the identities of third parties, the source of any funds or other property, the purpose of any instructions or any other matter. We may also need to obtain such evidence after we have begun to act on your instructions.

We assume that our clients are honest and law abiding. However, if at any time, there appear to be grounds to suspect that your instructions relate to ‘criminal property’, we are obliged to make a report to the National Crime Agency (NCA), but we are prohibited from telling you that we have done so.

Client monies

We may, from time to time, hold money on your behalf. Such money will be held in trust in a client bank account, which is segregated from the firm’s funds.

If the total sum of money held on your behalf exceeds £2,000 for a period of more than two months, or such sum is likely to be held for more than two months, then the money will be placed in an interest-bearing client bank account. All interest earned on such money will be paid to you. Subject to any tax legislation, interest will be paid gross.

If there are grounds to suspect that any monies held in a client account is derived directly or indirectly from any criminal activity whatsoever, we may not release such monies until we receive permission to do so from NCA.

Ownership of records

In the event of non-payment of our fees for services rendered, we reserve the right of lien over the books and records in our possession and may withhold the documents until such time as payment of our invoice is received in full. |n exercising this right, we will comply fully with any legal or professional obligations.

File destruction

Whilst certain documents may legally belong to you, unless you tell us not to, we intend to destroy correspondence and other papers that we store that are more than seven years old, other than documents which we think may be of continuing significance. If you require the retention of any document, you must notify us of that fact in writing.

Client relations

We are committed to providing a high standard of client service. If you have any ideas as to how our service to you could be improved, or if you are dissatisfied with the service you are receiving, please let us know. In the event that you have a complaint, we will look into this carefully and promptly and do all we can to explain the position to you or address your concerns. In the unlikely event that you are not satisfied with our response, you may make a complaint to your local trading standards office of government in your country. We can provide you with their contact details on request.

Third parties

All accounts, statements and reports prepared by us are for your exclusive use within your business or to meet specific statutory responsibilities. They should not be shown to any other party without our prior consent.

No third party shall acquire any rights pursuant to our agreement to provide professional services.

Applicable law

The engagement letter is governed by, and construed in accordance with, English law. The Courts of England will have exclusive jurisdiction in relation to any claim, dispute or difference concerning the engagement letter and any matter arising from it. Each party irrevocably waives any right it may have to object to any action being brought in those courts, to claim that the action has been brought in an inappropriate forum, or to claim that those courts do not have jurisdiction.

Limitation of liability

We will not accept liability if you act on advice given by us on an earlier occasion without first confirming with us that the advice is still good and not affected by any subsequent changes in the law or your circumstances.

We will not accept liability for losses arising from changes in the law or the interpretation thereof that are first published after the date on which the advice is given.

We will not accept liability for any loss suffered by you or any third party as a result of our compliance with the Anti-Money Laundering Legislation or any such legislation.

These terms may be updated from time to time so it is important you review them regularly.

 

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