Letter of engagement

CLIENT ACCOUNTANCY SERVICES

1. Terms of engagement

1.1 Members in Practice of the Chartered Institute of Management Accountants (“CIMA” or “the Institute”) subscribe to the promotion of high standards, ethical awareness, and best practice. As part of those standards, a letter of engagement outlining terms is issued and agreed prior to any work being undertaken.

1.2 This letter of engagement has been prepared following your selection(s) today and, together with Annex 1, sets out the terms on which our services will be provided. Please read all the information carefully and contact us if you have any concerns or require clarification.

1.3 In this letter of engagement, “we” and “us” and “our” relate to this accountancy practice and “you” and “your” relate to you, the client.

2. Scope of Services

2.1 Our services will be provided by your dedicated account manager and we will advise you of any proposed change. Dependent on the package you selected, the services to be provided, timescales and fees and are listed in Annex 1.    

3. Responsibilities

Our responsibilities are to:

3.1 observe the Laws of CIMA.

3.2 keep and maintain records of work completed and make them available to you upon request.

3.3 provide regular reports on the progress of any work being completed on your behalf.

3.4 raise any issues or concerns that may be found during the term as set out in this letter of engagement.

3.5 return any information owned by you within one month upon termination of the engagement and once payment for work carried out by the practice has been made.

3.6 keep records in compliance with Data Protection and Money Laundering legislation. In particular, we make you aware that the data controller is Zen Finance Solutions Limited and that in order to carry out the services as set out in this letter of engagement and for related purposes such as updating and enhancing our client records, analysis for management purposes and statutory returns, legal and regulatory compliance and crime prevention we may obtain, process, use and disclose personal data about you. We may also retain personal data about you for longer than is required under Money Laundering legislation.

Your responsibilities as the client are to:

3.7 provide the proof of identity information and business details as requested by us to comply with anti-money laundering regulations.

3.8 ensure that records of your business activities are correct and maintained to meet the requirements of regulatory authorities.

3.9 disclose all relevant information to enable us to complete the work within agreed timescales as set in Annex 1.

3.10 allow full and free access to financial and other records held by yourselves or third parties.

4. Ethical conduct

4.1 All CIMA management accountants work within the framework of the CIMA Code of Ethics (www.cimaglobal.com). The code requires accountants to comply with the principles of integrity, objectivity, professional competence and due care, confidentiality, and professional behaviour.  

4.2 As a CIMA management accountant, I have a duty to observe the highest standards of conduct and integrity, and to uphold the good standing and reputation of the profession.

4.3 The duty of a professional accountant is not exclusively to satisfy the needs of an individual client or employer. In complying with the ethical requirements of the CIMA Code of Ethics the professional accountant is obliged to act primarily within the public interest.

5. Fees

5.1 Our fees are based on a regular fixed monthly basis. Fees are reviewed annually and are subject to a minimum 3% increase, at which point a new Annex 1 will be issued. Annex 1 lists the services we agree to supply on a fixed basis dependent on the package you selected. Any additional work required which is not covered by these terms will be agreed with you and will result in a new Annex 1 being issued.

5.2 On purchasing your package, direct debit instructions have been provided for regular payments of a monthly fixed amount, which is dependent on the package you selected, for the minimum term as set out in Annex 1. You are covered by the direct debit guarantee. Payment of additional fees rendered by invoice are due within 30 days from the bill date. Interest may be applied to any overdue accounts at a rate of 5%. Where payment has not been received, we reserve the right to withhold services, documents, and information, and have the right to cease to work on your account, and to terminate the engagement if payments are unduly delayed.

5.3 Any expenses incurred whilst working on your behalf will be charged and appropriate records will be kept and will be available for inspection. Such expenses may include the use of meeting rooms and other facilities, internal printing, courier charges, and international but not national telephone calls.

6. Holding Client Monies

6.1 Client money is held in an account separate from the practice. Interest will only be paid once it exceeds £50,000.00 to avoid disproportionate administration costs.

7. Retaining and Accessing Records

7.1 Any information produced or relating to the work we undertake for you will be returned to you and should be kept for a period of no less than 6 years from the end of the tax year in question.

7.2 You agree that any work completed and work in progress for which payment is outstanding will be held by us until all fees relating to it have been paid.

8. Confidentiality and conflicts

8.1 We agree never to share information relating to your business with any third party without prior consent, unless required to do so by law or to comply with regulations or quality control reviews. Likewise, you agree not to use or copy or allow use of the output of the work we do for with a third party without our prior permission.

8.2 You recognise that we may have to stop providing services to you if a conflict arises between our duties to you and to another client. You will notify us if you have any reason to believe that such a conflict has arisen or may arise.

8.3 We may communicate with you electronically and you accept the risks associated with such communications, except anything arising through our negligence or wilful default.

9. Legislation and compliance

9.1 We are obliged by law and by CIMA to undertake checks to ensure that you and your business are operating lawfully. By agreeing to our terms as set out in this letter of engagement you accept that we are authorised to complete such checks, as necessary.

9.2 Under Money Laundering Regulations it is a criminal offence if we do not report suspicious transactions or if we inform a client that a report has been made against them.

10. Liability

10.1 As Chartered Management Accountants, we have a duty of care to you and we must observe the highest standards of conduct and integrity. Our services to you will only be completed by an accountant fully competent to perform such work and who holds current Professional Indemnity Insurance.

10.2 Where any loss or damage occurs as the result of you providing misleading, incomplete, or false information no liability will be accepted.

10.3 The advice we give you is not to be used by a third party without written consent. The practice also accepts no legal responsibility from third party use of the financial information provided by us.

11. Complaints and disputes

11.1 We want you to be entirely satisfied with the services provided to you. If, however, you are not, please refer to the Complaints Handling Procedure at Annex 2 of this letter. Any disputes arising from our engagement by you will, subject to the procedure at Annex 2, be governed by English law.

11.2 If a complaint cannot be resolved through our internal complaints handling procedure, under the Consumer Rights Act 2015 we are required to point you towards alternative dispute resolution (ADR) providers. There are many ADR providers listed on the Chartered Trading Standards Institute website but CIMA has an arrangement with CEDR for the provision of ADR. More information is available on the CIMAGlobal website.

12. Continuity Arrangement

12.1 In the event that we become unable to provide the services agreed through incapacity or death, a Continuity Arrangement has been made with Wilkins Kennedy, Gladstone House, 77-79 High Street, Egham, TW20 9HY. The purpose of this agreement is to look after your interests by providing continuity of services. You will be contacted in the event of such circumstances arising and you will have the option to decline to be covered by these arrangements.

13. Termination

13.1 You or we may terminate our engagement by giving one month’s written notice. All documents and information provided by you will be returned to you within one month of receipt of the notice provided that all outstanding fees have been paid.

Yours sincerely

Signed on behalf of Zen Finance Solutions Limited

 

___________________________      ____________

Name                                                              Date

Before any work can be undertaken on your behalf, you are required to confirm acceptance of these terms as set out in this letter of engagement by signing and uploading this document to your client page in MyZen or checking the box at checkout, and in so doing confirms your acceptance that you have read and agree to these terms. Please retain a copy for your own records.

I confirm I have read, understand, and agree to the terms and conditions set out above and in the annexes to this letter. By signing and uploading this engagement letter, or checking the box at checkout, I am consenting to my personal data being used as set out above. I confirm I have the authority to act on behalf of the company.

___________________________      ____________

Name                                                              Date

___________________________     

Position in the company

ANNEX 1

SCHEDULE OF SERVICES

This Annex is effective from the date of purchase or signature of the copy of the covering letter of engagement. It gives details of your advised service requirements. Fees are listed below as fixed. If service requirements change, this Annex must be replaced with a new version agreed with you. 

Services offered based on package purchased

1. Compliance package

Services and description

Operations

  • Limited company end of year accounts and filing
  • Confirmation statement submission
  • XERO cloud accounting software
  • Free XERO training session
  • Hubdoc bookkeeping software
  • Free Hubdoc training session

Tax & Payroll

  • Corporation tax return preparation and filing

Advisory

  • Dedicated account manager
  • Annual accounts review meeting
Payment by Direct Debit Fixed Fee Timescale
Total regular fixed monthly fee As advised Monthly

2. Acorn package

Services and description

Operations

  • Limited company end of year accounts and filing
  • Confirmation statement submission
  • XERO cloud accounting software
  • Free XERO training session
  • Hubdoc bookkeeping software
  • Free Hubdoc training session
  • Bookkeeping provided: up to 20 transactions per month

Tax & Payroll

  • Corporation tax return preparation and filing
  • VAT review and submission
  • Monthly payroll & RTI filing for up to 5 employees
  • 2 Director’s tax return (excl. CGT and IHT)

Advisory

  • Dedicated account manager
  • Annual accounts review meeting
Payment by Direct Debit Fixed Fee Timescale
Total regular fixed monthly fee As advised Monthly

Services not offered

  • Director’s tax return for CGT (Capital Gains Tax) and IHT (Inheritance Tax)

3. Seedling package

Services and description

Operations

  • Limited company end of year accounts and filing
  • Confirmation statement submission
  • XERO cloud accounting software
  • Free XERO training session
  • Hubdoc bookkeeping software
  • Free Hubdoc training session
  • Bookkeeping provided: up to 60 transactions per month
  • Quarterly Zen reporting suite

Tax & Payroll

  • Corporation tax return preparation and filing
  • VAT review and submission
  • Monthly payroll & RTI filing for up to 10 employees
  • 2 Director’s tax return (excl. CGT and IHT)

Advisory

  • Dedicated account manager
  • Bi-annual future-focused meetings
Payment by Direct Debit Fixed Fee Timescale
Total regular fixed monthly fee As advised Monthly

Services not offered

  • Director’s tax return for CGT (Capital Gains Tax) and IHT (Inheritance Tax)

4. Oak package

Services and description

Operations

  • Limited company end of year accounts and filing
  • Confirmation statement submission
  • XERO cloud accounting software
  • Free XERO training session
  • Hubdoc bookkeeping software
  • Free Hubdoc training session
  • Bookkeeping provided: up to 100 transactions per month
  • Quarterly Zen reporting suite
  • Quarterly analyses and KPI’s

Tax & Payroll

  • Corporation tax return preparation and filing
  • VAT review and submission
  • Monthly payroll & RTI filing for up to 20 employees
  • 2 Director’s tax return (excl. CGT and IHT)

Advisory

  • Dedicated account manager
  • Quarterly future-focused meetings
  • Basic annual tax planning consultation session
  • Preparation of annual budget and quarterly forecasts
Payment by Direct Debit Fixed Fee Timescale
Total regular fixed monthly fee As advised Monthly

Services not offered

  • Director’s tax return for CGT (Capital Gains Tax) and IHT (Inheritance Tax)

5. Personalised package

Services and description

Operations

  • Limited company end of year accounts and filing
  • Confirmation statement submission
  • XERO cloud accounting software
  • Free XERO training session
  • Hubdoc bookkeeping software
  • Free Hubdoc training session
  • YOUR SELECTIONS HERE

Tax & Payroll

  • Corporation tax return preparation and filing
  • YOUR SELECTIONS HERE

Advisory

  • Dedicated account manager
  • Annual accounts review meeting
  • YOUR SELECTIONS HERE
Payment by Direct Debit Fixed Fee Timescale
Total regular fixed monthly fee As advised Monthly

You have chosen the below package and applicable services for which you will be charged the total regular fixed fee (plus VAT) on a monthly basis:-

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Signed on behalf of Zen Finance Solutions Limited

___________________________      ____________

Name                                                              Date

Signed on behalf of client

___________________________      ____________

Name                                                              Date

___________________________     

Position in the company

ANNEX 2

COMPLAINTS PROCEDURE

1. Purpose

  • We, Zen Finance Solutions Limited, are committed to upholding best practice through a high-quality service to all our clients. This Annex sets out the procedure we will operate in dealing with complaints arising from the provision of services under our letter of engagement.

2. Raising an Issue

  • In the first instance please contact support@zenfs.co.uk or call +44 870 350 2479 to discuss any concerns you have, so that the matter can be investigated immediately. 

3. Making an Informal Complaint

  • An informal complaint can be made by email, telephone, or in writing to support@zenfs.co.uk, +44 870 350 2479, 2 Frederick Street, London, WC1X 0ND. If the matter is not resolved at this stage, and you have not already issued a complaint in writing, you should do so. Please include specific details so that the matter can be thoroughly investigated.

4. Making a Formal Complaint

  • Upon receipt of your written formal complaint an acknowledgement will be sent to you within 5 working days. The name and contact details of the person who will be dealing with your case will be supplied to you at this point.
  • Within 10 working days from receipt of your written complaint you will receive in writing a summary of our understanding of your complaint. You will be asked at this time to provide any further evidence or information regarding the complaint and to confirm that we have understood all your concerns.
  • Following such confirmation, we will investigate the matter and write to you in reply within 10 working days unless it becomes apparent to us that the investigation may not be completed within this timescale. In these circumstances, a written explanation will be sent to you including a progress report. When a substantive reply is sent you, a summary of findings will be included along with details of any further action to be taken.

5. If you are not satisfied

  • For service-related matters involving a CIMA member in Practice in the UK, you may wish to know that CIMA offers an independent Alternative Dispute Resolution (ADR) facility for members of the public.
  • If in the context of your dealings with us or the handling of your complaint, you believe that a member of CIMA has been guilty of misconduct, you may lodge a complaint with the Professional Conduct department of the Institute. Further information on ADR or making a complaint about alleged misconduct can be found on the CIMA website at www.cimaglobal.com.