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Terms Of Engagement
Thank you for choosing Love Bookkeeping as your trusted BAS Agent and Professional Bookkeeping Service provider. We are grateful for the opportunity to work with you and help support the growth of your business.
Please review the following information, outlining the scope of bookkeeping work agreed upon and other important information relating to responsibilities from both parties. These are also supported by factsheets provided by the ICB and TPB and included in your onboarding pack.
Our Approach
Our firm is a professional firm and a member of the Institute of Certified Bookkeepers. We are a
registered BAS Agent (TPB Registration Number 26005912), and accordingly, we have specifically
included in the requirements of the Tax Agent Services Act 2009.
We include for your attention the following documents:
● The Professional Bookkeeper.
● Our Policy Statement, which includes:
○ Our adherence to the TASA2009 Code of Conduct.
○ Our membership of the Institute of Certified Bookkeepers.
● Our Disclosure Statement
○ Declaring the matters required by TASA2009 (Code of Conduct) Determination.
As a member of the Institute of Certified Bookkeepers (ICB), we:
● Are constantly kept up to date with new and updated laws and requirements.
● Are able to access continuing professional education opportunities.
● Have the required Professional Indemnity Insurance in relation to services we provide to you.
● Access resources and support services as and when required.
● Adhere to the ICB professional code of conduct.
Love Bookkeeping Pty Ltd Responsibilities
The bookkeeping/BAS services we provide to you will be performed by us remotely. We will be provided with / establish specific user access to your software and systems to enable our processing and the identification of the work performed.
We have detailed below the services that we are able to perform. Specific details of the our engagement with individual clients will be detailed in separate correspondence.
Bookkeeping Services
● Entering and/or verifying the entry of customer and supplier invoices into accounting software (this includes verifying customer/supplier ABN and GST registration status).
● Entering and/or verifying the entry of payments and receipts from bank and other electronic methods.
● Emailing / communicating any queries related to the accounts for the period.
● Ensuring the correct integration of different business systems into the accounting record (for example, point-of-sales systems or add-on solutions).
● Reconciliation and/or verification of all bank, loan, and credit card accounts.
● Reporting Balance Sheet, Profit and Loss and other reports as required.
● Reporting outstanding debtors and creditors (if applicable).
Payroll & Superannuation
● Administer the employee onboarding system (TFN Dec., SuperChoice, Personal Details).
● Setup employees in payroll system.
● Prepare payroll weekly/fortnightly/monthly, including STP reporting to the ATO.
● Email payslips to employees on completion of pay run upon the receipt of authority to email from the authorised person within your organisation.
● Advise you of Superannuation Guarantee obligations and arrange for payment and submission of Superannuation data.
● Lodge Tax File Number declarations.
● Review, advise and lodge PAYG Withholding and Superannuation guarantee obligations upon receipt of authority from the authorised person within your organisation.
● Reconcile End of Year wages & subsidiary accounts, including certifying WorkCover Rateable
Remuneration, TPAR upon receipt of authority from the authorised person within your organisation.
● Report lodge STP Finalisation, including employee income statements, upon receipt of authority
from the authorised person within your organisation.
● Finalise the payroll year (if applicable).
BAS Services
● Review and report on monthly/quarterly BAS.
● Email reports and declarations to the authorised person within your organisation.
● Lodgement of BAS upon receipt of authority from the authorised person within your organisation.
● Monthly/Quarterly/Yearly GST reconciliation and relevant BAS adjustments.
● Liaise with the accountant as to any end of month journals or adjustments.
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● Prepare and Review end of year reports.
● Provide accountant with information as required for year end.
● Liaise with the accountant as to any end of year journals or adjustments.
● Ensure essential and required business records are maintained and stored for the financial year.
● As applicable, execute new financial year processes.
If additional work is required beyond the items listed above, then we require the scope of work required to be specifically outlined to us. We will confirm additional instructions in writing (email) before commencement of the work. If this work is outside our experience or competency, we shall discuss with you how to ensure the work is performed appropriately including seeking assistance from a person who holds the expertise.
“Client/Business Owner” Responsibilities
Source Documents
You will provide access to the relevant business records, as discussed.
This may include paperwork relating to the transactions for the month or quarter.
This may include:
● Ongoing access to the Business Software.
● Bank statements (set up automatic bank feeds directly to accounting software).
● Credit card statements.
● All expense receipts/invoices to be provide to us via Hubdoc.
● Separate authorisations for payroll services.
● Answers to queries as required in a timely manner.
Please note:
● It is your responsibility as the business owners for the maintenance and accuracy of business
records and availability of records either for our processing or for verification and provision to
authorities if required.
● We may request source documents for some items and process transactions based on the
information provided by you, which does not necessarily include all source documents. Where
source documents are not provided and GST cannot be validated by Love Bookkeeping, no GST will
be claimed.
● It is a requirement that you must hold copies of all relevant documentation in compliance with the ATO standards.
● It is a requirement by the ATO that ABNs of suppliers be checked at least once a year to ensure that they are valid.
● All relevant documentation and information required to allow us to prepare and produce financial reporting to comply with legislative requirements must be received 14 days prior to due lodgement dates. We will not be liable for any penalties incurred if documentation and information has not been provided.
● A separate signed authority must be provided to us if we are engaged in making payments on your
behalf.
● A separate specific authority form must be provided to us for each lodgement of documentation
with the ATO; we will provide this form to you before each lodgement.
● You authorise us to contact your nominated tax agent via email and phone as required.
Client Verification
In line with ATO requirements, we are legally required to verify the identity of all prospective clients before onboarding. This process helps protect your information and ensures compliance with national regulations.
To complete this, Love Bookkeeping uses Scantek, a secure and ATO-compliant digital verification
platform. You will receive a link from Scantek with simple instructions to upload your identification documents.
This is a one-time process and must be completed before we can begin working with you. We appreciate
your cooperation and commitment to secure and compliant bookkeeping practices.
Client Sales Invoices
Responsibility for the accurate entry of sales invoices and the correct GST treatment remains with you as the client. Unless we are specifically instructed or queries are raised, we will assume that all sales invoices have been accurately prepared and allocated by you.
We recommend reviewing your sales processes regularly to ensure compliance and accurate GST
reporting. If you would like support in this area, please let us know—our team is happy to assist.
Service Fees
As discussed and agreed, our monthly fee to you for the agreed services are outlined in separate correspondence to you.
We shall discuss with you any intention to change the fee arrangement due to changes in the work required.
Work additional to the agreed services included in the monthly fee will be charged at an agreed upon hourly rate.
Out of scope – includes but not limited to and invoiced separately:
➢ Changes in legislation and implementation of those changes
➢ Payroll – significant changes
➢ SGC Statement preparation and lodgement
➢ ATO liaison, particularly in regards to payment plans
➢ Payroll tax
➢ Additional reporting / reports pack or cash flow set up and forecasting
➢ Accountant liaison or issues with accountant year end entries
➢ Auditor liaison and assistance
➢ Year end adjustment journal entries provided by accountant/auditor
➢ Information provided late/staggered causing increase in processing time
➢ Sudden large increase in volume of transactions
➢ Addition of bank or credit card or other accounts / bank feeds
➢ Set up of banking access at bank branch
➢ Software subscriptions
➢ Fixing past errors prior to engagement of Love Bookkeeping
➢ Additional client requests deemed out of scope
➢ Unusually lengthy additional telephone conversations
➢ Client meetings outside of scope
➢ Asset purchases journal entry
➢ Financing agreements set up (eg insurance premium funding, chattel mortgages)
➢ Fee for late provision of information required for ATO lodgements (ie less than 3 weeks before due date)
➢ Other additional services
We will provide separate documentation to enable the monthly direct debit of the fee to your bank account/credit card.
● An invoice will be sent on the 1st working day of each month.
● Payment of that invoice is 7 days net, direct debits are set to the 10th of each month.
● If payment is not made without prior arrangement by the due date, we may charge a 2% compound interest charge on the balance of the bill.
● We reserve the right to stop work if you fail to make payment when and as it falls due.
● Any debts beyond 30 days (unless a prior payment arrangement has been entered into) will be referred to eCollect (or other debt collection agency), and any costs associated with recovering such debts will be passed onto you.
● We reserve the right to review fees for services rendered on a regular basis; any change in price will be notified in writing.
● Either party can end this agreement by giving 4 weeks’ written notice of intention to end the agreement. In the event of termination of the contract by you without the agreed notice, you agree to pay $250 in lieu of notice. This period is required to allow a professional and complete handover of your accounts.
● Bookkeeping and BAS Agent services will cease at the conclusion of the agreed notice period, on a mutually confirmed date. At that time, Love Bookkeeping will not be held responsible for any unreconciled transactions that remain outstanding due to unaddressed queries or lack of response.
● To ensure a smooth transition, handover to a new bookkeeping provider must be completed within 14 days of the end of your engagement with Love Bookkeeping. We are committed to supporting a professional and efficient handover process within this timeframe.
Utilisation of Other Workers
To ensure timely and high-quality delivery of our services, Love Bookkeeping Pty Ltd may engage employees or contractors to assist with the agreed scope of work. We have partnered with TOA Global Pty Ltd, a reputable provider of highly qualified, Australian-trained offshore professionals, to support our team. All team members—whether local or offshore—operate under the direct supervision of Love Bookkeeping and uphold our strict professional standards.
Every representative of Love Bookkeeping Pty Ltd is bound by the Institute of Certified Bookkeepers’Code of Conduct, which includes robust confidentiality obligations in accordance with this Engagement Letter. In addition, all registered agents are bound by the Tax Agent Services Act 2009, which mandates the strict confidentiality and protection of client information.
Incapacity Planning
In accordance with Tax Practitioners Board (TPB) regulations, all registered BAS and Tax Agents are required to have an Incapacity Plan in place to ensure continuity of service in the event of unforeseen circumstances.
To meet this obligation, Love Bookkeeping has appointed Michelle Kunde, a registered Tax Agent, as our designated caretaker. In the unlikely event that we are unable to continue providing services due to serious illness or other unforeseen events, Michelle will have access to the necessary information to support a smooth transition.
Should this plan ever need to be activated, Michelle will contact you directly to discuss your needs and any future service arrangements, ensuring there is no disruption to your bookkeeping or compliance obligations.
Third Party Software Services
To provide the highest standard of service, Love Bookkeeping reserves the right to connect your Xero file to third-party software applications that support efficient and accurate bookkeeping processes.
We currently use trusted platforms such as Hubdoc (for receipt and document management), XBert (for
data integrity and process automation), and Float (for cash flow forecasting), among others. These tools help us streamline our workflow and deliver timely, high-quality insights and support.
From time to time, we may introduce additional or alternative software solutions to better meet your needs. All third-party tools are selected carefully to ensure they meet industry standards for data security and privacy.
Confidentiality
Any information and all matters connected with and relating to your business and its performance are confidential and we shall not disclose them to any other person/entity unless authorised to do so in writing or unless legally required. Our team regularly undertakes internal training around our obligations related to client confidentiality.
Payroll Matters
Love Bookkeeping Pty Ltd is engaged to establish the payroll systems based on the payroll information provided to us. We will implement and maintain the payroll based on this information. It is agreed that Love Bookkeeping Pty Ltd is not engaged to interpret and apply the Fair Work provisions to this business.
Communication
You must keep us informed of your current business details, including address, phone, and email address. We are engaged and authorised to work with your business by the people named above, and any changes to your personnel and their respective authorisations that change the performance of our work for you should be advised to us. Any new or amended authorisations, as a result of personnel changes, must be updated, signed and given to us within 14 days of occurrence.
Lodgement of Information with ATO
A requirement of law is that you will be provided with a declaration/authorisation each time for lodgements required by the ATO, including Activity Statements, Superannuation Guarantee Charges and TPAR reports (if applicable). Lodgement of all forms will follow our receipt of that written authorisation. Email authorisation is acceptable. Failure to lodge on time can incur a fine, and this will be your responsibility to pay if the authorisation has not been received by us.
Review of Documentation
The responsibility for reviewing final reports and/or work rests with you.
You will not be charged to correct errors that are clearly our fault, but revisions performed at your request will be charged at the agreed hourly rate.
Responsibility for Bookkeeping Records
Responsibility for the maintenance of business records rests with you, the client. This includes security of those records and prevention against fraud. It is important to remember that you are personally responsible for the information contained in any statutory return and that you must retain all necessary supporting documentation to substantiate the transactions.
As your advisor, we will question the nature of transactions that may require our review of the source documents. We will then discuss with you the impact of our review.
We have discussed and agreed on the requirement for business records, including primary source documents, to be retained by you. We have discussed your expectations as to our involvement in the verification that such records are accurate, correct and being maintained.
It is also important to state that as a BAS Agent/Bookkeeper, if we are advised in writing by yourself that you have copies of the invoices and the GST is applicable, we will process on the basis that you have the correct records.
Business documents are the legal property of yours the client.
Responsibility of Backup of Accounting File and Other Supporting Documents
We advise that the responsibility of backup maintenance of the accounting file and supporting documents rests with you, the client. We will check that appropriate backups or retention of core accounting reports are taken at critical times of the financial year.
We will keep the records required to substantiate the reports and advice we provide to you. You should ensure all your business electronic data is backed up securely or that your provider has appropriate backup and security. Our records of work and output provided does not replace your own (legally required) secure record keeping requirements.
Ownership of the Accounting Software File
If our license for Accounting Software is used for your business, a licence removal fee may be charged at the completion/termination of our bookkeeping services.
If you choose to discontinue our services, including the provision of software through us, we shall cease our licence to that software, noting that it is your responsibility to ensure you have retained the necessary business records that you are required to maintain.
If we have incurred subscription fees on your behalf in advance, then any early termination of this agreement may result in the balance of those subscription fees being paid to us.
Please be aware that many software companies include in their terms and conditions the right to access your data file for their use and information. By giving us access to your business data (whether through our subscription or your own) in Xero, you also acknowledge that the terms and conditions of the software provider allow for their access to your data.
Disclosure of Commission
We are a professional partner of Xero. This allows us to be constantly updated about developments to their software, participate in specialised training and benefit from their loyalty program. As a partner of Xero, we receive a discount on certain monthly subscription fees.
We retain any commissions or discounts received as part of our professional fees.
Destruction of Documents and Files
Upon our request, either during our engagement or following its termination, you must collect your property without delay, which will be released to you once our accounts are paid. Should any of your property remain in our possession following our request to collect it, we will hold the property for three months before destroying it in accordance with the Australian Consumer Law and Fair Trading Act 2012.
Standards
Register of Tax Agents and BAS Agents Register
The Tax Practitioners Board maintains a public register of Tax Agents and BAS Agents.
The register contains registration details of registered, suspended and deregistered Tax and BAS Agents.
The register is available at https://www.tpb.gov.au/public-register
Guidance on how to use the register is available at https://www.tpb.gov.au/help-using-tpb-register
Complaints
We aim to provide the highest standard of professional service and are focused on the concerns of your business. If, for any reason, you feel you have not received the level of service expected or have an issue to raise, please contact myself to discuss how the problem may be resolved. Complaints about the BAS services you receive can be made directly to the Tax Practitioners Board.
The Tax Practitioners Board’s complaints process is explained, and the online form is available at https://www.tpb.gov.au/complaints
Furthermore, as a member of the Institute for Certified Bookkeepers (ICB), we are subject to the ethical requirements of ICB and its investigations and disciplinary processes. These requirements cover issues such as code of conduct and ethics, adherence to bookkeeping standards and requirements to undertake continued professional education. Should there be an issue regarding the ethical or business practices of myself or my company, you may refer such matters to ICB.
Tax Agents Services Act Disclosure Statement
By law, we are required to disclose certain matters to you, which are advised in the attached Disclosure Statement.
Working Standards
When working onsite, we expect a reasonable working environment, which includes a safety-regulated chair, office space and non-smoking area.
Cancellation Fee
We reserve the right to charge a fee if our appointment is cancelled on the day. This will be $150.
Indemnity
You agree to indemnify us for any loss that may result from third party claims arising from the provisions of the services. If there is a claim against us for loss, the loss will be proportionately reduced by the extent of your contribution to the loss.
Phone Support
A charge fee will apply when extended phone support is given.
Right of Lien
We have a right of lien on records and business data, that is, we reserve the right to hold records and data against any outstanding debts. Note this will only apply to records and data that has been worked on but for which payment is outstanding.
Director or Personal Guarantee
You agree to execute the Director’s Guarantee/Personal Guarantee that is attached to this engagement letter.
Client Agreement
In Our Business, we:
Uphold and adhere to being a “Professional Bookkeeper.”
Uphold and adhere to the requirements of the Institute of Certified Bookkeepers (ICB) Professional Code of Conduct.
Uphold and adhere to the requirements of the TASA2009 Code of Conduct for Registered BAS Agents (The Code).
Uphold and promote the ethical standards of the tax profession.
Comply with our personal and business tax and compliance obligations.
To Achieve This, in Our Business, we:
● Have a Quality Management System.
● Undertake at least 30 hours per year of Continuing Professional Education.
● Provide training and resources to ensure we understand and apply the current business and compliance obligations for our clients.
● Provide training and resources to ensure we understand and apply the Code.
● Actively endorse, promote and require adherence to the Code.
● Have a culture of transparency, accountability, ethical conduct and compliance with the Code and the tax laws.
Our Quality Management System Includes Processes for:
● Our approach to providing services.
● Our approach to communication with Clients.
● Review of work performed.
● Supervision and control.
● Record keeping in relation to services provided.
● Recognition and required actions in relation to amending or correcting previous work including any false or misleading statements to the ATO or other Government agency.
If there was ever an issue in relation to the performance of any of our team in relation to their performance including in relation to breaches of the Code:
● We have systems to enable team members to report concerns.
● Our policy is to protect team members who raise any such concerns.
● We have processes to manage and address any underperformance.
● Appropriate records of actual or potential breaches of the Code are maintained.
Our Team Members:
● Are supervised and reviewed as necessary to ensure the quality of provision of services.
● Are trained and enabled to be up to date with necessary skills and knowledge.
● We ensure that any team member, person or entity providing services to you on our behalf has not been disqualified by the Tax Practitioners Board.
● We have conducted police checks as required as an element of ensuring the team meets the requirements of being a fit and proper person.
● Are remunerated in accordance with consideration of their skill, experience and adherence to the Code.
We specifically note that in accordance with the requirements of the Code, we uphold the principles of Honesty & Integrity, Independence, Confidentiality and Competence. We take reasonable care in ascertaining a client’s state of affairs and in ensuring that taxation laws are applied correctly to your circumstances in relation to the statements we are making on your behalf or the advice we are providing to you. We will advise you of your rights and obligations under relevant taxation laws.
We also advise that we will bring to your attention any matter that could significantly influence your decision in relation to our engagement for provision of services.
Please also refer to our Disclosure statement.