ACCOUNTING & BOOKKEEPING AGREEMENT, TERMS & CONDITIONS
1. PARTIES
This accounting contract is made by and between (the Accountant) and (the Client).
The accounting service will start from the date the quotation was signed, unless otherwise specified in the quotation itself.
WHEREAS the Client wishes to retain the Accountant for bookkeeping services,
AND WHEREAS the Client agrees to engage and compensate the Accountant as an independent contractor for these services, and the Accountant agrees to provide such services,
THEREFORE, in consideration of the terms and conditions detailed in this contract, the receipt, understanding, and approval of which is duly acknowledged through electronic signature from both parties below, all parties to this contract agree to the Price mentioned in the quotation.
All prices indicated are exclusive of VAT. Therefore, a 5% VAT will be added to each item subject to this quotation.
IMPORTANT: The client will need to pay each month an amount corresponding to the number of transactions made in that month. If the number of transactions exceeds the tier agreed upon initially, whose amount is specified in the first onboarding invoice issued concurrently with this agreement, a balance adjustment will be made the following month, corresponding to the payment of the tier in which the client fell during the relevant month.
The annual financial audit is mandatory and must be completed by March of the following year.
2. CLIENT’S RESPONSIBILITY
a) Financial Transactions
The client is responsible for providing/ submitting all accounting and related documents or/and data related
b) Your Company’s Official Documents
After the contract with you, we need the following documents:
• Copy of valid Trade License / Certificate of incorporation
• Copy of the Memorandum, the Article of Associations, and its amendments if any.
• List of official/authorized signatories
c) Exclusion of Liability for Prior Periods and Information:
- Accuracy of Client Information: The client agrees to provide all necessary financial information and documentation accurately and completely. The accounting firm shall not be liable for any errors or inaccuracies in the financial statements and reports arising from incorrect or incomplete information supplied by the client.
- Indemnification for Incorrect Information: The client shall indemnify and hold harmless the accounting firm, its partners, employees, and agents from any and all claims, liabilities, costs, and expenses (including reasonable attorneys’ fees) arising from the reliance on information and documents provided by the client that are inaccurate, incomplete, or otherwise misleading.
- Limitation of Liability: The accounting firm’s liability for services rendered under this agreement shall be limited to the amount of the fees paid by the client for the services involved. In no event shall the accounting firm be liable for any special, indirect, incidental, or consequential damages, including loss of profits, even if the firm has been advised of the possibility of such damages.
- Client’s Responsibility for Data Verification: The client acknowledges and agrees that the responsibility for the accuracy and completeness of the financial information rests with the client. The client is responsible for reviewing all financial statements and reports prepared by the accounting firm and must notify the firm immediately of any errors or discrepancies.
No Assurance on Future Performance: The accounting firm makes no warranties or guarantees regarding the future performance of the client’s business, financial condition, or results of operations. The firm’s services are based on historical and present data furnished by the client, and the firm shall not be held liable for future changes or developments in the client’s financial status.
Exclusion of Past Accounting Liabilities: The client acknowledges and agrees that the accounting firm is not responsible for auditing, reviewing, or verifying the accuracy of the financial records and tax filings prior to the commencement of services under this agreement. The accounting firm shall not be held liable for any penalties, fines, taxes, or other financial liabilities arising from errors, omissions, or discrepancies in the client’s financial records or tax filings that occurred before the firm was engaged. This includes, but is not limited to, liabilities related to VAT (Value Added Tax) and Corporate Tax as enforced by the authorities in the United Arab Emirates. The client is solely responsible for any past financial or tax irregularities and the resulting consequences thereof.
3. GUIDELINES – YOUR MONTHLY FINANCIAL TRANSACTIONS
3.1. Sales Invoice, Requirement for Accounting Process
Sales invoices must be issued in serial numbers. Each sales invoice must show the client’s name in full, mailing address, contact information, email address, receiver’s name, and signature.
Cash sales invoices must be separated from credit / on-account sales.
Sales Invoice must have provision for VAT tax
An original copy of the sales invoice enclosed with an original copy of the delivery note must be saved in the client file along with other related documents.
Filing – The client must submit/provide a monthly sales listing report to the Accountant. the Accountant can provide a template for the listing format if the client requires it.
3.2.Fund Receiving & Collection Requirements for Accounting Process
Each received fund in physical or by bank transfer / online must have a receipt voucher issued in return.
Each Post-Dated Check received must have a receipt vouched issued in return.
All Receipts must issue in serial numbers. The receiver showing his /her name must sign each receipt. A copy of the receipt voucher enclosed with proof of fund deposit in the bank must be saved in the client file. A template for receipt voucher can be provided by the Accountant if the client requires it.
Filing – The client must submit/provide a monthly receipt listing report to the Accountant. the Accountant can provide a template for the listing format if the client requires it.
3.3. Purchases & Inventories
Each purchase invoice must show the vendor/supplier’s name in full, mailing address, contact information, email address, receiver’s name, and signature. A copy of the purchase invoice along with a copy of the delivery note – if any – must be saved in the vendor/supplier File along with other related documents.
Filing – The client must submit/provide a monthly purchases listing report to the Accountant. the Accountant can provide a template for the listing format if the client requires it.
3.4. Payments – Cash, Check, Post-dated Check, and Online Payments
The client must submit the payment voucher attached with supporting documents. Example checks copy, online payment voucher, etc. The receipt must be gain from the supplier/vendor to whom payment was made. The payment voucher must be submitted in listed serial numbers to the accountant. The receiver showing his name must sign each payment voucher. A copy of the payment voucher must be saved in the client’s/ Supplier’s file.
Reporting to your Accountant
Filing – The client must submit/provide a monthly payment listing report to the Accountant.
3.5. Petty Cash
The client has to submit all petty cash and related payments/expenses to the accountant. Every amount must be supported with a documented example: fueling invoice, PRO expense receipts, and invoices, grocery invoices, etc. All receipts/ invoices must be signed in red pen by an authorized signatory of the company by the month-end or before.
Reporting to your Accountant.
Filing – The client must submit/provide a monthly petty cash listing report to the Accountant.
3.6. Banking
The client is responsible for maintaining a separate file for each bank account. Each file must be labeled with the bank name, bank account number, and name of the authorized signatory. The file must be divided into separate divisions so that it can store the bank’s documents in each division. Example: Bank statement and monthly bank reconciliation.
3.7. Reporting to your Accountant
The client has to prepare the payroll sheet on a monthly basis and submit the monthly sheet along with proof of payment to the Accountant.
3.8. VAT Accounting
- The client as per the tax law must maintain a quorate record for VAT and tax-related transactions.
- Our accountants will take care of the VAT Accounting
3.9. Any other additional requirements to be discussed
4. PRESENTATION AND MEETING
Immediately after getting this proposal agreed and approved by the client, a qualified accountant from the Accountant will conduct a presentation explaining the task and the client’s responsibilities in detail.
5. BENEFITS OF OUTSOURCING YOUR ACCOUNTING
- High-quality accounting services.
- On-time availability of accounting output.
- Stability. And the legality of your accounting
- Accounting based on generally accepted principles.
- More economical cost wise
- No permanent employee (Accountant). No labor card and visa expenses, no medical insurance, no leave salary, no air ticket expense, no sick leave pay, no indemnity pay, etc.
This agreement is prepared upon customer’s request
All not included in the quotation shall be quoted apart.
The above fees are subject for 5% VAT upon issuance of Invoice
It is the policy of the company to increase the fees by a rate of 4% to account for inflation from year to year.
6. TERMS OF PAYMENT
Indicated in the quotation
7. METHOD OF PAYMENT
Payments must be made to the Accountant at the bank details provided in the Quotation.
8. FEES RE-ASSESSMENT
Our professional fees were detriment based on the workload; the quoted fees are subject to re-assessment every months, based on the number of transactions performed.
9. CONTRACT PERIOD & RENEWAL
This contract shall be in force for a period of twelve (12) months and shall be auto renewable unless terminated by the Parties. It is further agreed upon by the Parties that this Contract shall not be terminated before the expiry of the first twelve (12) months contract period. Provided that if any Party terminates this Contract within the first twelve (12) months contract period, the terminating party shall pay a termination fee which is equal to three (3) months consultation fee under this Contract to the other Party. Notwithstanding the above provision, parties have mutually agreed that this Contract may after the first term (Twelve (12) months) be terminated.
10. VALIDATION OF THIS ENGAGEMENT LETTER
This engagement letter will be valid from the date of receiving the signed agreement or from the first payment, whichever comes first. And kindly be informed that in the case of any other payments not being received, this engagement letter will automatically be considered as terminated, the Accountant will not be liable for the continuation of the task and any payment made by the client will not be refunded.
10. CONFIDENTIALITY AGREEMENT
Under this agreement, the Accountant agrees that while performing its obligation, we shall comply with all applicable laws, including data privacy and protection laws. Furthermore, the Accountant have proper internal controls in place in order to protect and keep all information disclosed by customer, its employees, agents and representatives to the Accountant confidential.
13. MUTUAL OBLIGATION
Under this agreement, the Accountant agrees that while performing its obligation, we shall comply with all applicable laws, including data privacy and protection laws. Furthermore, the Accountant have proper internal controls in place in order to protect and keep all information disclosed by customer, its employees, agents and representatives to the Accountant confidential.
Both parties agree not to offer employment to the staff of each other either directly or indirectly or to place them in other companies during their employment and within 24 months after termination of their service. Any breach of this clause entitles the losing party to seek compensation.
14. LIABILITY
In no event shall MP Elites Consulting for Accounting & Bookkeeping LLC aggregate liability arising out of or related to this contract, whether arising out of or related to breach of contract, tort (including negligence) or otherwise exceed the total amount paid by the Client as fee under Article 1 under this Contract (the detailed and customized amount will be specified in the invoice that will be issued concurrently with this contract, following the agreements made with the Client).
15. DISPUTES
Parties hereby agree to submit to the non-exclusive Jurisdiction of the Dubai Court in accordance with the provisions of the relevant applicable law to determine and finally resolve any dispute arising out of or in connection with this contract, including any question regarding its existence, validity or termination.
We trust our proposal meets with your requirements and look forward to having the opportunity of working with your company.
By signing the quotation, the terms of this contract in its entirety are also accepted.
General Price List
