This is to confirm our understanding of the terms and objectives of our engagement and the nature and limitations of the services Molen & Associates will provide.
Molen & Associates is pleased to provide the professional services to the business listed on the agreement as described herein. You may have been provided with a summary version of the agreement to review and sign. Please read this letter carefully, because it outlines expectations by both Molen & Associates and the business listed on this agreement. The intention of this letter is to confirm your understanding of, and agreement with, both what is included with our services, as well as the limitations of the services you have asked us to perform.
Purpose, Scope and Output of the Engagement
Molen & Associates will provide professional services at your request. You have engaged us to maintain the specified scope of services for the business listed on the agreement. You will review and approve all journal entries, transaction classifications, and account codes determined or changed by our firm. Without limiting the extent of the work we may provide for you, we will perform only the specified services at the specified intervals for this engagement.
Additional engagement letters will be required at the time of tax return preparation or other projects to clearly define parameters under which this work will be completed per industry standards.
Unanticipated Services
Only the services which are listed in the attached schedules are included within the scope of our instructions. If there is additional work that you wish us to carry out which is not listed in the schedule, any additional work will be quoted to you before the commencement of said additional work. Once the scope of the additional work is agreed upon, we will issue an additional or updated letter of engagement, and will ask you to sign the new agreement before we commence the new work.
Furthermore, the business listed on the agreement will agree that if an unanticipated need arises (such as an audit, additional tax return complexity, an amended tax return or a personal financial statement required as part of a loan agreement), this additional work will be performed only after arriving at a mutually agreed-upon price.
Period of Engagement
The engagement starts on the start date listed on the agreement and will last for an initial period of 12 months, but will continue on a month-to-month basis until it’s ended by mutual agreement or superseded by a newer engagement. We will not deal with earlier periods unless you specifically ask us to do so and we agree. You or we may agree to vary or terminate this agreement at any time without penalty. Notice of variation or termination must be given in writing 30 days in advance. If early termination is requested, a 30-day notice must be provided and all transactional services rendered during the term of the engagement would be collected in full. An early termination fee equal to 50% of the fees remaining in the term must be paid. This amount will be billed to the payment information on file. Upon termination, you agree to pay us for any work rendered up to your notice of cancellation as previously agreed among us, or otherwise at our then-current rates, that has not yet been paid. We may use any deposits or payments already received and apply them to your account in satisfaction of any amounts owing at the time of termination.
The estimated monthly fee will be honored for the first 90 days and then will be either confirmed or adjusted according to actual work performed for your business if needed.
Service and Price Guarantee
Molen & Associates will always stand behind the quality and professional nature of the services that we offer. If at any point you are not completely satisfied with the services we have performed, we encourage you to bring this to our attention immediately. We’d love the opportunity to correctly address your concerns and allow us a chance to win your trust back and prevent similar problems from happening in the future.
If you are still not satisfied with the outcome of our services, we will work towards a mutual agreement regarding the payment for services completed. As an example, we may agree to either forgive the related payment or accept a portion of the originally agreed price that reflects your level of satisfaction.
Ownership of Documents
All original documents obtained from the client arising from the engagement shall remain the property of the client. However, we reserve the right to make a reasonable number of copies of the original documents for our records.
Client Responsibilities
The business listed on the agreement is responsible for the reliability, accuracy and completeness of the accounting records, particulars and information provided and disclosure of all material and relevant information. The business listed on the agreement is required to arrange for reasonable access by us to relevant individuals and documents, and shall be responsible for both the completeness and accuracy of the information supplied to us. Any advice given to the business listed on this agreement is only an opinion based on our knowledge of your particular circumstances.
Based on questions and/or concerns you have, regarding your ongoing financial reporting, accounting records, and business management issues, we will offer our opinion(s) and describe any alternatives we are aware of. Our opinion(s), and related alternatives, will be based on our knowledge, training and experience, but at all times, the decisions you make are strictly yours, as is the responsibility for the financial records of your company.
If necessary, we may suggest you contact your attorney, one of our strategic partners with that specific expertise, or someone else better suited to assist you.
Upon request, you will be responsible for providing any/all of the following information for services solicited in a timely manner including but not limited to:
- Bank statements
- Credit card statements
- Lines of credits or loan statements
- Wage statements/Payroll reports
- Gross Sales or Income received
- Backup copy of QuickBooks file
- Business formation paperwork
- Tax Returns
- Acceptance letter for entity election
Scope of Limitations
Our engagement cannot be relied upon to disclose errors, irregularities or illegal acts, including fraud or defalcations, which may exist. We may inform you of any matters that come to our attention.
Confidentiality; Our Proprietary Information
In conducting this engagement, information acquired by us in the course of the engagement is subject to strict confidentiality requirements. That information will not be disclosed by us to other parties except as required or allowed for by law, or with your express written consent. This applies even if you are no longer a client. We are committed to safekeeping of your confidential information and we maintain physical, electronic, and procedural safeguards to protect it. However, we may be required by law to disclose what may otherwise be considered confidential information of yours if requested by the IRS or federal government, or if you disclose that information to a third party.
You assume all responsibility relating to adherence with privacy and disclosure requirements relating to the use and sharing of information in your industry. If your business or industry requires greater privacy or security protections than those provided in this letter, it is your responsibility to ensure that your disclosure of information to us is in compliance with such requirements, and you agree to indemnify and hold us harmless in connection with any claims arising from your failure to do so.
You acknowledge that the proprietary information, documents, materials, management techniques, and other intellectual property we use are a material source of the services we perform and that these were developed prior to our association with you. Any new forms, software, documents, or intellectual property we develop in this engagement for your use shall belong to us, and you shall have the limited right to use them solely within your business.
Third-Party Disclosure and Use of Third-Party Services
Unless you indicate otherwise, our firm may transmit confidential information that you provide to us to third parties in order to facilitate delivering our services to you. We will ensure that third-party service providers who we share information with agree to protect your confidential information and to use it only in connection with the services they perform for us.
Electronic (Email) Communications
We may communicate via email, and while we use safeguards, we cannot guarantee the security or confidentiality of those transmissions. By signing this agreement, you acknowledge and accept this risk.
Record Retention
It is our policy to keep records related to this engagement for 7 years for discontinued clients and indefinitely for ongoing clients. You are responsible for maintaining your own original records.
Indemnification
You are to indemnify Molen & Associates for any monetary losses, including attorney’s fees, caused in whole or part, by your negligence, dishonest intentional act, or failure to meet or fulfill the obligations outlined in this engagement letter.
Limitation of Liability
By accepting and signing the engagement letter, the business listed on the agreement agrees that the liability of Molen & Associates arising from the services performed shall be limited to no more than 100% of the fees which you pay us for the performance of this engagement.
Accuracy of Information Provided
Our engagement is limited to the period and services indicated herein. We will rely on the accuracy and completeness of the documents and information you provide to us.
Previous Period Errors
If there are errors or unreconciled account balances, you authorize Molen & Associates to make adjusting journal entries to proceed with reconciling and producing financial statements for the current period.
Billing
Services may be billed on a fixed rate or hourly rate. Additional services will be quoted and billed separately.
Invoicing and Payment
Invoices will be submitted monthly and are due upon receipt. We reserve the right to suspend services for past due invoices and charge interest at 1.5% per month on unpaid sums over 60 days.
Retainers
If a retainer is required, it will be held in trust and applied to future invoices. Any unused portion will be refunded within 60 days of termination.
Governing Law; Venue; Attorneys Fees
This Agreement will be governed by the laws of the State of Texas. Disputes shall be resolved in Texas courts. The prevailing party in any legal action shall be entitled to recover attorneys’ fees and costs.
Entire Agreement
This letter constitutes the entire agreement between the parties and supersedes any prior understandings or communications.
In Addition
This proposal is contingent on a 12-month engagement including bookkeeping, tax prep, and quarterly consults. Early termination before completing the first year will result in full charges plus a 25% penalty due to upfront workload and discounted pricing.
Confirmation of Terms
Please review and sign the engagement letter provided to indicate that it is in accordance with your understanding of the arrangements. This letter will be effective for future years unless we advise you of any change.
Yours sincerely,
Molen & Associates
By signing the summary agreement or agreement, I confirm I have the authority to contract on behalf of the business listed on the agreement. I hereby agree to the terms of engagement dated the start date of this agreement with Molen & Associates as set out above in this letter of engagement.