See if this fits your needs.
This letter is to confirm our understanding of the terms and objectives of
my engagement and the nature and limitations of the services I will provide
over the next 12 months.
Prepare payroll for you and your employees. From your information,
calculate the gross salary, withholding amounts and net pay (checks can be
printed from your check stock) on a semi-monthly basis (regular work day
only), prepare monthly or quarterly payroll tax deposits (federal and
state), prepare quarterly payroll reports (Forms 941, 940 & DOL-4), and
annual payroll reports (Forms W-2, W-3, & 940). You will provide us with
the employees' hours, tips received and any special withholdings. The fees
for these services are based on the number of employees and the frequency of
the payroll. I anticipate that the fees will run $$$$$ per month for up to
2. SALES TAX REPORT
We will prepare from your information the sales tax report for the State of
Georgia on a monthly basis. You will provide the sales information on a
monthly basis. The fees for sales tax preparation will be $$$$$ per report.
3. FINANCIAL STATEMENTS
Prepare from your information, financial statements that will include a
Balance Sheet, an Income Statement and a Cash Flow Statement. The financial
statements will be prepared monthly and include reconciling the bank
account. The financial statements will be prepared on the income tax basis
of accounting to reflect the potential tax implications of revenues and
expenses. The fees may vary depending on the amount of time necessary to
properly compile complete and accurate finaiclas. The fee based on monthly
financial statement preparation is estimated to run $$$$$$.
4. PACKAGE PLAN
The above services can be packaged together for a fee of $$$$$$$ per month.
5. TAX PLANNING & CONSULTING
I will be available for tax planning and consulting on other tax, accounting
and financial issues as requested. Issues may cover the tax or accounting
treatment of certain transactions, establishing retirement plans or other
employee benefits, cash flow issues, asset controls, accounting functions,
among other issues. The fees for these services are billed on an hourly
basis of $$$$$ per hour. If we are preparing monthly financial statements
for you, you will receive up to XX hours of consulting time per year at no
6. TAX PREPARATION
Preparation of your corporate tax returns to include the federal tax return,
Georgia tax return, and Clarke County property tax report. Corporate tax
return fees are based on the amount of time necessary to complete the work.
Based on a standard Form 1120S the fees should run $$$$$ if we are preparing
financial statements on a regular basis.
Preparation of personal income tax returns is to be covered under another
engagement letter if those services are requested.
7. LIMITATION AND SCOPE OF SERVICE
These services are not designed, and should not be relied upon, as a
substitute for management's own business judgement nor are they meant to
mitigate the necessity of management's review and analysis of the businesses
financial data. We will not be auditing or otherwise evaluating the
businesses financial data, or providing any other form of assurance on the
financial statements or tax returns. In addition, these services are not
designed to discover fraud, irregularities, or misrepresentations made in
materials provided to us.
Fees quoted above are estimates. The actual fee may vary according to the
facts and circumstances of the specific services rendered. The above fee
structure will be effective as of October 1, 20XX for all services rendered
after that date and for the next 12 months.
If the foregoing is in accordance with your understanding, please sign one
copy of this letter and return it to me as soon as possible. If you have any
questions about the above items, please feel free to give me a call.
Paul Thomas, CPA
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