Dear Contractor, Re: Engagement Agreement for our Professional Services Welcome to CTB Accounting...for Contractors. This letter serves to outline the following: 1. The scope of our engagement. 2. A fee proposal for undertaking the work specifically outlined; and 3. What you need to do to engage us. 1. Scope of our engagement The scope of our engagement will include: New Company setup, including o Incorporation of new company o Application for ABN and TFN with Australian Taxation Office o Provide copies of all documents for Bank Account o Ongoing ASIC record keeping and changes (as required) o Review of annual ASIC company statement Business setup, including o Software Registration o Setup of file o Preparation of chart of accounts o Payroll setup o Assistance with Workcover and other Insurance applications Regular Monthly Processing, including o Weekly processing of transactions o Processing of payroll Preparation of Quarterly Business Activity Statements, including o GST calculation and review o PAYG Withholding calculation and review o PAYG Instalment calculation and review o Lodgement of BAS o Notification of all amounts owed to ATO o Notification of all amounts owed for superannuation Preparation of Annual financial statements, including profit and loss, balance sheet in accordance with ASIC requirements, including o Tax File Declarations for all new employees o Completion of all annual PAYG Summaries, and lodgement of PAYG Summary report with Australian Taxation office o Provision of a Certificate of Compliance to ISGM by 30 September each year Preparation of annual income tax returns and review of assessments and notices issued by the Australian Taxation Office, for company and individual Preparation and lodgement of annual workcover return Software monthly subscription Complimentary subscription to Contractor Toolbox, which includes o Help desk helpdesk@contractortoolbox.com.au for queries o Online storage facility for storage of documents o Regular business updates
The scope of our engagement will be limited to the performance of the services listed above. If the scope does not meet your requirements or you would like to discuss the scope with us further, please let us know. If you wish to change the scope of our instructions please contact Erik Hipwood (0403 172 550) or Rick Hipwood (0412 670 161). Current Structure We understand that: Your structure consists of: o Company Pty Ltd o Contractor Name Timing We will commence our work on your acceptance of our Engagement Agreement. 2. Fee Proposal Company setup: There is a once only setup fee of $660.00 (incl GST), which includes all company setup costs. Ongoing service: Our fees for these services listed above will be $440.00 (including GST) per month, payable via direct debit. First payment will occur 4 weeks from commencement of work under the ISGM contract. As agreed our fees will be fixed, based on our discussions and investigations. This fixed fee arrangement is in regard to the agreed and specified services. In regards to Additional Services, i.e. Services that are not defined and described in the attached schedule - our fee arrangements will be as agreed by a separate Engagement Letter. We enclose our standard terms and conditions which, together with this letter, set out the basis upon which we will work with you (Engagement Agreement). The terms and conditions enclosed with this letter will also apply to future engagements unless we issue another engagement agreement. 3. What do you need to engage us Your acceptance of these terms This Engagement Agreement sets out the basis on which we will act for you. Please sign this letter where indicated and return a copy of the signed letter to us to indicate your acceptance of the Engagement Agreement. In addition, please sign the attached direct debit authority. If you wish to discuss any of the terms of this letter please contact Erik or Rick Hipwood. We look forward to working with you. Yours faithfully CTB ACCOUNTING Partner
CTB ACCOUNTING ENGAGEMENT AGREEMENT I acknowledge that I: have read and agree to the terms and conditions of our appointment of CTB Accounting in accordance with this letter and the enclosed appendices; and am authorised to enter into this agreement on behalf of Company Pty Ltd. Signature: Name: Position: Contractor Name Director Date:
TERMS & CONDITIONS CTB Accounting commitment to you CTB Accounting are confident in offering you a professional service and meeting your expectations. For this relationship to work most effectively, it requires two sets of commitments yours and ours. We take these commitments seriously and invite you to do the same, so that we can maximise the benefits of our service to you. Our commitment to you includes: To hold all personal, business, taxation & finance information about you & yours in the strictest of confidence. You may provide us with permission to disclose your confidential information in certain circumstances, or place conditions on the disclosure of certain confidential information. If you do so, we will have permission to disclose the relevant information accordingly, in the performance of our services, unless you instruct us otherwise in writing. To return calls, emails & requests for information from you within 2 business days of receiving it. To notify you of any unexpected issues that may arise which may vary this quotation and discuss with you the options available to you and any additional costs. To advise you of when you will have the work finalised. To discuss the progress of your business and advise you of any recommendations. To always look out for your best interest by ensuring that all your personal & business affairs are addressed and taken care of by way of quality affiliated associates who specialise in Wills, Insurances, Finance, Superannuation and Investments. To act in your best interest is subject to an overriding obligation to comply with the law. For example, we could not lodge an income tax return for you that we knew to be false in a material respect. Our advice and/or services will be based on Australian taxation law in force at the date of the provision of the advice and/or services. It is your responsibility to seek updated advice if you intend to rely on our advice at a later stage. Your commitment to us It is our aim to provide expert, timely and professional service. To enable us to provide this level of service it is important that you provide us with quality and relevant information when requested. To notify us of any issues, discrepancies or grievances you may have as soon as they arise so that we have the chance to rectify them immediately. Inaccurate, incomplete or late information could have a material effect on our services and/or our conclusions and may result in additional fees. We will not verify the underlying accuracy or completeness of information you provide to us. You agree that the performance of our services is dependent on the performance of your obligations relating to disclosure and record keeping. You are also required to advise us if you become aware of any conflict of interest or potential conflict of interest. For example, changes to your business circumstances, events affecting your family (e.g. death and/or marriage breakdown) or a legal action commencing against you. Record keeping. You will store all source documents for a period of 5 years. To pay our fees within or before our payment terms. If you fail to meet your commitments a review of the engagement agreement, including fees, may be required.
Your disclosure and record keeping obligations By accepting the terms of this letter, you will be taken to have agreed that the performance of our services is dependent on the performance of your obligations relating to disclosure and record keeping. The Taxation Administration Act 1953 contains specific provisions that may provide you with safe harbours from administrative penalties for incorrect or late lodgement of returns if, amongst other things, you give us all relevant taxation information in a timely manner. Accordingly, it is to your advantage that all relevant information is disclosed to us as any failure by you to provide this information may affect your ability to rely on the safe harbour provisions and will be taken into account in determining the extent to which we have discharged our obligations to you. You also have certain obligations under the Australian taxation laws, such as the obligation to keep proper records and the obligation to lodge returns by the due date. Authority to act on your behalf In addition to the above, your signature at the bottom of this engagement letter also gives us authority and your acceptance to act on your behalf, receive & send correspondence for you and any associated entities to the Australian Taxation Office and other regulatory governing bodies, and to sign Business Activity statements on your behalf. We acknowledge the trust bestowed on us by you to do this and will endeavour to carry out all representations in a professional and ethical manner. Fee Arrangements We will conduct a review of the scope and fee proposal of the Engagement Agreement annually. Any proposed changes will be discussed and agreed with you within a minimum 30 day notice period. Payment Arrangements Our services will be paid monthly in advance by Direct Debit. Variable, Weekly or Fortnightly services will be billed monthly in arrears. Minimum Commitment You agree that the minimum commitment for these services is for Eighteen (18) Months from/including first payment, unless approved by CTB Accounting. After this period the services will continue on a rolling monthly basis. Cancellation Arrangements After the minimum commitment period these services can be cancelled with a 90 day notice period. General We may assign or subcontract all of our rights and obligations under these terms and conditions.
Definition of Terms CTB Accounting: refers to CTB Accounting Pty Ltd ABN: 79 160 246 891. Financial Statements: May comprise of the following: Rental Statement Trading Statement Profit and Loss Balance Sheet and notes Any relating minutes. Tax Return: Preparation of return lodging to the Australian Taxation Office (ATO) and checking the notice of assessment (if applicable). Work Cover annual returns: Preparation and lodgement of Annual workcover return. Business activity statements (BAS): Preparation of monthly, quarterly or annual BAS and lodging with the ATO. Instalment activity statements (IAS): Preparation of monthly, quarterly or annual IAS and lodging with the ATO. ASIC administration: Act as the registered office and provide ASIC with any updates and changes to company register during the financial year. Bookkeeping services: May comprise of processing of: Invoices Payments Reconciliations Payroll Services: Processing of weekly, fortnightly or monthly wages. Xero monthly subscription: Accounting package monthly subscription fee. Additional Services: means services provided outside the scope of the engagement letter.