Sample of Engagement Letter Only

Peter Charles Geddes & Co

                                                                                                A.B.N                                                                     31 327 430 520

                                                                                        Telephone:                           ( 08 ) 8239 0135

Professional National Accountant                                        Mobile:                                       0405 188 079

Tax Agent                                                                                                                 email: peter.geddes@wellingtoncottage.com.au

Engagement Letter

 Tax Agent

 Date                    Today's Date

 Name                   Your Name

Address details    Your Address

Dear Sir/Madam 

Re:      Engagement of Peter Charles Geddes as your Tax Agent

                                   for …. entities

Following our discussions I am pleased to accept your appointment as your Tax Agent.  We seek to act in the best interests of our clients at all times and offer the highest level of professional services.  My Tax Agent number is 6394 4006

The scope of the engagement is as set out below (and any additions shall only be by agreement of both  parties and evidenced in writing):

 As your Tax agent I will:

Professional Fees and Payments 

All professional fees for the services provided to you will be based on the time and degree of skill and acumen required to complete the tasks required, including out of pocket expenses and statutory charges, unless otherwise agreed between the parties. 

My current professional fees are:

Professional work Accounting & Taxation matters                            $ 150 per hour

Bookkeeping & BAS Returns                                                             $   50 per hour

Secretarial/other staff                                                                         $   50 per hour

For work undertaken for periods of less than an hour, the rate shall be charged in 6 minute blocks, or part thereof.  All professional fees are GST exclusive.

Any estimate of the cost of service is only an estimate and the actual cost may vary. 

The cost of the assignment may change due to matters outside my control such as an unforeseeable delay, the cooperation or otherwise of third persons, deficiencies in documentation provided and/or increased statutory charges.  If the costs to you is likely to be significantly higher than originally estimated we will provide you with an additional letter of engagement inform you of this and the reasons for the likely increase.

Terms of Payment

Unless other terms have been agreed to, my/our terms of payment are on completion of the Income Tax Return or strictly 14 days from the date of each invoice.  I will provide you with an itinerated account of all fees, costs and disbursements upon request.

Disclosure of other fees and commissions

I disclose to our clients any commissions or other fees received as a result of work done for that client and will fully comply with any statutory requirements in relation to the disclosure of such information.

Deduction of Fees from refund cheque

It has been agreed between the parties that the fees for service will be deducted directly from any tax refund cheque.  In accordance with the requirements of the National Institute of Accountants (NIA), your refund cheque will be deposited into my bank account, the fees will be deducted and the remaining amounts forwarded to you in accordance with your requirements.

Documents

Before I lodge any necessary documentation on behalf of the company, I will Before I lodge any necessary documentation on your behalf, I will forward draft documentation to you for approval.  I shall endeavour to ensure that documentation is lodged with the relevant departments by the due dates, provided all information and documentation is received in a timely manner to allow me adequate time for preparation and lodgement of the documentation.

Responsibility for Accounting and Internal Control Systems

I advise that the responsibility for the maintenance of a business accounting system and internal control systems rests with you (the client), including the protection of and prevention against fraud.  You will be responsible for the maintenance and keeping of books of account.  If any material weakness in the accounting system or internal control systems comes to my notice, I will advise accordingly.

It is important to remember that you are personally responsible and liable for the information contained in any statutory return.  You must retain all necessary supporting documentation to back up any claim. 

I will not take responsibility for any failure on your behalf to maintain adequate records or for failure to provide all necessary details.  It is vitally important that if you are or have been a child support client that you provide information relating to this as it may affect the lodgement of your return and any refund amounts owing.

Ownership of Documents

The final financial statements, tax return and any other documents which I am specifically engaged to prepare, together with any other original documents given to me, shall remain your property.  Any other documents brought into existence by me including general journals, working papers, the general ledger, draft financial statements and/or tax returns, will remain my property at all times.  However, I will always provide you with copies of any documents that you may require from time to time.

Lien over Documents

I may invoke a Lien over certain documents held until such time as an outstanding fee has been paid or other satisfactory arrangements are reached.  A Lien in a right to hold certain documents or property until the debt incurred in respect of that property/document has been satisfied.  The Lien however may not be held over property that belongs to another, including if held jointly, and does not cover statutory documents (eg a Tax Return, BAS or refund cheque)

Quality Review

As a Member/Fellow of the National Institute of Accountants (NIA) I am subject to periodic quality assurance reviews.  Unless otherwise advised by yourself, by engaging myself, you are consenting to your files being part of such a quality review.

Standards

We aim to provide the highest standard of professional service and are focused on the concerns of our clients.  If for any reason you feel you have not received the service level expected or have an issue to raise, please, at first instance, contact myself principal partner to discuss how the problem may be resolved. 

Furthermore, as a Member/Fellow of the NIA in public practice, I am subject to the ethical requirements of the NIA and its Investigations and Disciplinary processes.  These requirements cover issues such as a Code of Conduct and Ethics, adherence to Accounting and Auditing Standards, requirements to undertake Continued Professional Education and to hold trust money in a Trust Account.  Should there be an issue regarding the ethical or business practices of myself, such matters may be referred to the NIA Investigator. However, as the accounting profession does not have regulated fees, the NIA will not investigate purely fee-based disputes but may recommend the parties seek mediation to resolve such disputes.

As a registered Tax Agent I are also subject to the requirements set down by the Tax Agents Board and complaints may be lodged with them, for information on the Tax Agents Board they may be contacted by calling 1300 362 829.

Previous Accountant

As a matter of professional courtesy, and in line with the requirements of the NIA, we/I will need to inform your previous accountant that we/I have been engaged by you as your new accountant and to receive from them any outstanding matters and files.  You may refuse to provide this information but in doing it may cause problems in the efficient transfer of your files.

Previous Returns

Please note that we are/I am not engaged to review the accuracy of any returns lodged by your previous accountant.

If you are in agreement with above terms of engagement please sign and return the attached duplicate letter to me.  I also attach TX forms for your signature, to authorise me to act on your behalf in relation to your tax affairs.  It is the requirement of the Australian Taxation Office for each taxpayer to sign an appointment form.

Should you have any further queries in relation to the above, please do not hesitate to contact me.

Yours faithfully

Peter Charles Geddes

        (Director)

Wellington Square Cottage

55 Wellington Square, North Adelaide, South Australia, 5006

PO Box 16, North Adelaide, South Australia, 5006

Phone:         (08) 8239 0135        Fax:  (08) 8267 1928

Mobile:  Peter:   0405 188 079       Elvira:   0410 679 079   

email:      peter.geddes@wellingtoncottage.com.au

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