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Definitions
FIRM – Accounting Firm LLC (a Florida Limited Liability Company located in Weston, FL) represented by Bea N. Counter, CPA
CLIENT – Client Inc. (a Florida Corporation located in CLIENT, FL) represented by John
Smith
AGREEMENT – The responsibilities of all parties involved in this Service Agreement
DOCUMENTS – The information, included but not limited to, bank statements, receipts, transaction details, check images, etc. that CLIENT must provide to FIRM in order to complete the SERVICE
SERVICE – this is the deliverable from FIRM, which will be detailed and restricted in the
Scope of Work section bellow
STAFF – Senior Bookkeeper level staff member that works for FIRM and will provide part of the SERVICE (see Scope of Work)
ACCOUNTANT – Junior or Senior Accountant level staff member that works for FIRM and will provide part of the SERVICE (see Scope of Work)
Brief Description of SERVICE (Proposed by FIRM)
Bookkeeping services based on QuickBooks performed via remote access connected to computer that belongs to CLIENT. This bookkeeping will serve as “catch-up” to get books updated up to 09/30/2015, depending on when this AGREEMENT is started. Please see
Scope of Work, for details on SERVICE to be provided.
Assessment of Client’s Needs (What FIRM understands to be CLIENT’s current state and needs; which may different than actual SERVICE to be provided)
On 09/21/2015, FIRM connected with CLIENT in a remote call, where FIRM was paid to review the QuickBooks file that CLIENT currently has and provide this assessment.
The company file has; presumably, accounting data that has been reconciled and revised by
CLIENT or a previous accountant up to 12/31/2014, we are not providing any assurances as to the accuracy or fairness on the financial statements up to that point, but both CLIENT and FIRM are working under the assumption that those numbers represent a good starting point. FIRM noted that there are many transactions entered into the QuickBooks file with
2015 dates, however the bank statements and credit card statements are not properly reconciled
(refer to: http://support.quickbooks.intuit.com/support/pages/inproducthelp/Core/QB2K12/ContentPackage/C ore/Balance_Reconcile/task_reconcile.html
, for Intuit’s definition of what “reconciliation” means).
Although CLIENT has custody of the QuickBooks file and there are transactions dated 2015,
CLIENT does not feel confident using the financial statements and other reports that
QuickBooks currently outputs to make management decisions as the data is currently not complete or accurate from CLIENT’s perspective.
CLIENT creates Invoices based on rental income provided to multiple tenants occupying multiple properties.
CLIENT would like in the short-term (within a few months) rely on QuickBooks for
Financial Statements at least on a monthly basis where all bank and credit card statements

are reconciled on a monthly basis and all the transactions are classified correctly (according to accepted accounting standards used by CLIENT’s industry and the FIRM’s professional experience; but not necessarily GAAP)
Scope of Work or SERVICE (What FIRM will do for CLIENT as part of this AGREEMENT)
Phase 1: Make the necessary journal entries to adjust 12/31/2014 Balance Sheet to match the last filed Tax Return or previously finalized Financial Statements dated 12/31/2014.
This will provide the starting point / baseline for FIRM’s SERVICE. CLIENT is responsible for providing all DOCUMENTS to corroborate the assertions of those values. Most of the work in this phase will be performed by ACCOUNTANT
Phase 2: Reconcile all bank, credit cards, and loan statements. Make sure all bank deposits match the customer payments based on invoices previously created by CLIENT. FIRM will match payments to customers only, CLIENT is solely responsible for creating or deleting invoices and/or applying the payments to the appropriate invoice. FIRM will not be involved in the accounts receivables process that CLIENT should manage 100% internally.
Most of the work in this phase will be performed by STAFF. Transactions considered for this phase will be limited to transactions dated 01/01/2015 to 09/30/2015, assuming that
CLIENT provides all the required DOCUMENTS before the first week of October in order to provide completion of project within 3 weeks of receiving all DOCUMENTS required by
FIRM
Phase 3: High-level adjustments are typically made at the end of phase 2, which are typically performed by ACCOUNTANT using assertions of value on all balance sheet items provided by CLIENT.
Explicitly excluded from SERVICE (What we will NOT do)
 FIRM will not contact financial institutions to research or request DOCUMENTS
 FIRM will not contact a customer or vendor to research or request DOCUMENTS or assess the value of CLIENT’s Accounts Receivable and/or Accounts Payable
 FIRM will not troubleshoot, train or aide client in entering transactions during the duration of agreement
 FIRM will not troubleshoot or fix computer, software, or networking related issues on CLIENT’s computer. It is CLIENT’s responsibility to hire IT professionals for this.
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Not will FIRM backup ANY data in CLIENT’s computer
CLIENT Responsibilities
CLIENT is responsible for providing a dedicated computer or terminal with access to the
QuickBooks file at least 6 our of the 8 regular business hours, and unlimited access during non-business hours
CLIENT is responsible for providing DOCUMENTS in a timely matter. DOCUMENTS must be complete and legible. DOCUMENTS must be in digital format and delivered via FIRM’s portal of choice, which is HubDoc. DOCUMENTS must be accurately labeled with actual transaction date or period they belong to, and organized based on their nature: Receipts,
Statements, Check Images, etc. Sometimes a DOCUMENT may be represented by replaying to an questions sent by FIRM to CLIENT via e-mail.
Price / Billing Schedule
As per CLIENT’s request, no flat-fee or fixed fee will be used for this engagement. CLIENT’s specific request is to pay by the hour, with 15-minute increments rounding up.

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The SERVICE to be provided, will be priced based on the specific staff member (STAFF or
ACCOUNTANT) will perform the work within FIRM’s organization.
STAFF = $65/hour
ACCOUNTANT = $125/hour
Timesheets can be provided upon CLIENT’s request at any time of the AGREEMENT. An invoice will be created every time the total services provided add up to the minimum payment terms, explained on the next section. Timesheets are completed and reviewed within FIRM in a weekly basis.
Payment Terms, Maximum, and Total Project Cost
An initial deposit of $500 will be required in order for the AGREEMENT to commence. The minimum payment terms will be $500 deposits, in other words, although the Price is set at an hourly rate, as soon as an Invoice is created for $500 or above, an additional payment for
$500 will be required in order to continue the work. CLIENT may pay any amount above the minimum payment terms up front to avoid SERVICE interruption.
No maximum has been set in this agreement. It is CLIENT’s responsibility to track the progress and evaluate potential cost of completed project. FIRM is not providing an estimated total number of hours or any turn-key project guarantees.
Agreement
This AGREEMENT can be terminated by either party at any time. CLIENT is committed to providing DOCUMENTS in order for FIRM to provide SERVICE. If FIRM determines that
CLIENT does not provide legible or complete DOCUMENTS, FIRM may terminate service at will. If CLIENT determines that the quality of the SERVICE is not up its expectation, it may terminate services at will. No refunds beyond the minimum payment terms described on the previous section, in other words, CLIENT’s maximum financial risk upon the termination of this AGREEMENT early without meeting CLIENT’s needs, is $500, since
CLIENT will be evaluating the progress and assessing satisfaction on service quality upon every invoice received based on the previous section. This AGREEMENT is only active while
CLIENT is current based on payment terms described previously. The AGREEMENT is considered complete when the SERVICE is finalized and the final invoice is issued by FIRM.
Any available balance remaining from the difference between he payments made by
HOSUTON and invoices provided by FIRM, will be left on account for any additional services that may be requested in the future.
Disclaimers
Although we have CPA’s on staff; we are not providing any assurance services, all financial statements will be labeled “For Internal Use Only” or “No Assurance is Provided”
Additional Services
Most accounting services provided by FIRM that are not listed on this AGREEMENT; can be made available at the client’s request without the need of an additional agreement or amendment this document. However, scope of work request must be within a reasonable skillset and experience requirement similar to the SERVICE described on this agreement.
Such services must be made in writing as an e-mail sent to both STAFF and ACCOUNTANT; and CLIENT will receive a response if there is an agreement to perform the service at the same price / billing schedule described previously; this may include performing a similar
SERVICE with an affiliate company or QuickBooks file.

Other Notes from FIRM:
CLIENT ultimately wants a monthly bookkeeping services to be performed by FIRM and a formal pricing quote will be provided to CLIENT based on a flat-fee (instead of hourly fees) once the AGREEMENT is completed.
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John Smith
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Date
Client Inc
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Bea N. Counter, CPA
Managing Partner
Accounting Firm LLC
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Date