SCHEDULE OF SERVICES – (502) ACCOUNTS PREPARATION FOR A SOLE-TRADER
Scope of services to be provided
Our responsibility to you
We have set out the agreed scope and objectives of your instructions within this letter of engagement. Any subsequent changes will be discussed with you and where appropriate a new letter of engagement will be agreed. We shall proceed on the basis of the instructions we have received from you and will rely on you to tell us as soon as possible if anything occurs which renders any information previously given to us as incorrect or inaccurate. We shall not be responsible for any failure to advise or comment on any matter that falls outside the specific scope of your instructions. We cannot accept any responsibility for any event, loss or situation unless it is one against which it is the expressed purpose of these instructions to provide protection.
Your responsibility to us
The advice that we give can only be as good as the information on which it is based. In so far as that information is provided by you, or by third parties with your permission, your responsibility arises as soon as possible if any circumstances or facts alter, as any alteration may have a significant impact on the advice given. If the circumstances change therefore or your needs alter, advise us of the alteration as soon as possible in writing.
Our function as accountant is to act as agent on your behalf in preparing the accounts (either income and expenditure account only or income and expenditure account and balance sheet as advised) of your business for the first period as agreed and subsequent years. This may involve:
Writing up your books and records from the information and vouchers provided and preparing draft accounts for your approval.
Completing the writing up of your books and records in so far as they are incomplete when presented to us, and preparing from the records the 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.
- Reconciling balances monthly / annually with the bank statements.
- 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 at the year end: stocks and work in progress; fixed assets; amounts owing to creditors; amounts owing by customers; and accruals and prepayments.
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.
To ensure that anyone reading the accounts is aware that we have not carried out an audit, we will attach to the accounts a report stating this fact.
The intended user of the report is the proprietor. The report will be addressed to the proprietor.
Our services as detailed above are subject to the limitations on our liability set out in the engagement letter and in our standard terms and conditions of business. These are important provisions, which you should read and consider carefully.
You may request that we provide other services from time to time. For such work we will issue a separate letter of engagement and scope of work to be performed accordingly.
Because rules and regulations frequently change you must ask us to confirm any advice already given if a transaction is delayed or a similar transaction is to be undertaken.