An Engagement Letter/Terms and Conditions is an agreement between us (the service provider) and you (the client).

Engagement Letters 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 services is Office Overload Solutions Pty Ltd, represented by Erika Williams who holds the BAS Agent Number 26089840.

As required by the Tax Agent Services Act, we hold Professional Indemnity Insurance to the level specified by the Tax Practitioners Board (TPB).

Our firm, or persons within our firm, hold the following professional memberships:

Member of Australian Bookkeepers Network (www.austbook.net);

Scope of Engagement

Our engagement extends to the following services:

> Supply of accounting software;

> Creation of an accounting software file for your business including chart of

accounts set-up, payroll configuration, and assignment of default GST tax

codes;

> Recording of receipts and payments into accounting software;

> Reconciliation of bank and credit card accounts;

> Reconciliation of debtors, creditors and inventory subsidiary ledgers;

> Posting of journal entries where necessary;

> Preparation of Business Activity Statements and Installment Activity

Statements;

> Payroll attendances at weekly/fortnightly/monthly intervals;

> Annual Preparation of PAYG Payment Summaries and Annual ATO Reporting;

> Preparation of weekly/fortnightly/monthly/quarterly financial Statements;

> Preparation of the financial year-end work papers for your tax agent;

> Bookkeeping training;

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

> Telephone and email-based support;

> 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.

For services that lay outside of our scope of engagement, and for any other matters that we advise as being beyond our sphere of expertise, we recommend that you contact your registered Tax Agent/Accountant.

Period Covered by Our Engagement

Our engagement will be taken to have commenced from the point in time that an Engagement Letter has been signed and returned to us, unless an alternative future commencement date is agreed to by both parties.

Unless a limited engagement period has been agreed to by both parties, our engagement will be taken to continue indefinitely until either party terminates the engagement by giving 30 days notice in writing.

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 our 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 harbor 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 harbor

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:

>>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

>>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.

Our 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.au, 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.

As a client, one of the benefits of using a BAS Agent is the ability to make use of the so-called Safe Harbour provisions. Broadly, this means that ATO penalties will no longer apply to you:

+ where a false or misleading statement is made carelessly, provided you have taken reasonable care to comply with your tax obligations by giving your BAS agent the information necessary to make the statement; and

+ where a document (such as a return, notice or statement) is not lodged on time in the approved form due to a BAS agent’s carelessness, provided you gave the agent the necessary information, in sufficient time, to lodge the document on time and in the approved form.

Your Obligations Under this Agreement

It is your responsibility to make all relevant information available to us in a complete and timely manner. We require you to provide the information in the following format:

- Forwarding all Bills, Receipts and Suppliers invoices received by email to the designated email address set up for your organization in Hubdoc/Receiptbank on a weekly basis

- Scanning all relevant documents received and forwarding to said email address on a weekly basis.

- Taking pictures of your receipts, bills and supplier invoices from your mobile app set up for you in Hubdoc/Receiptbank on a weekly basis.

- Ensure the Receipt of all documents in a clear legible format

- Use the discuss function in Xero to respond to queries on a weekly basis

- Use email and phone contact where necessary to clarify instructions or queries.

- We run a paperless cloud computing practice and do not store clients paper copies on site. All paperwork sent to us will be returned to you once completed.

- If you require us to implement a filing solution for your organization we will do so and all paperwork will need to be received in the format as implemented and will be returned to you on completion.

- 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;

- delete one of the following two bullet points, depending on the policy your firm adopts:

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.

We will only claim GST on capital purchases and expenses where a valid Tax Invoice is provided.

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

Unless we have a legal duty to do so, we will not disclose information relating to your affairs to a third party (other than parties contracted by our firm) without your express permission.

How We Price Our Services

This section of the engagement letter explains how we charge for our services.

Hourly Rates

For the engagement described by this letter, our services will be priced by the hour for the first 3 months (BAS Quarter) of our engagement and then at an agreed fixed fee thereafter. Each member of our team is assigned an hourly rate commensurate with his or her qualifications and experience.

Fixed Rates

For the engagement described by this letter, our services will be priced by a fixed fee at the start of our engagement depending on the service being provided.

Hybrid

For the engagement described by this letter, some of our services will be priced as fixed fees, while others will be priced by the hour.

We charge a flat rate of $50.00 per hour for travel time when we travel to and from your site. We will keep site visits to a minimum unless expressly requested by your organization or the nature of the work requires regular site visits. Because we use mainly cloud software solutions we are able to complete most of the work remotely.