Updated – January 1, 2017

New Client
Engagement Letter / Notice
Bookkeeping & Accounting Services
We appreciate the opportunity to provide bookkeeping and accounting services to your
business organization. To ensure a complete understanding between us, this letter will describe the
scope and limitations of the services we will provide for you.

What We Do:

- Full QuickBooks Set Up

o If you don’t already use QB as your business accounting software, our staff will
set up your accounts in QB and create a mutually agreed upon and customized
chart of accounts as required by your business. A one-time set up fee may apply.
o If you are using a current and active version of QB, our staff will take the data
that exists and upload it to our in-house QB software so as to be able to continue
with bookkeeping where you left off. No additional fees for this data transfer
will apply
o You may choose to use QB on-line. MKA does not charge additional fees but
Intuit will charge you directly for the use of this on-line software. Our staff can
explain how this works in more detail
o You may choose QB desktop to be hosted in our office. No additional charges
for this service will apply. Free annual updates to the latest version of QB are
included.

- Accounting & Bookkeeping Services

o On a monthly basis, we will enter all bookkeeping transactions for your business
into the QuickBooks file for your company. This includes checks, deposits, and
other transactions affecting the checking account and/or credit card. It also
includes invoices, credit memos, and all customer transactions.

o We will perform the bank reconciliation for the checking accounts and credit
cards.

o We will also enter adjusting journal entries as necessary, including depreciation.

o We will set up new customers, employees, and vendors on an as need basis. All
of the above transactions will be entered from original documents and ledgers
you provide (secure and authorized on line accountants access where available
with your banks)
 The AFFORDABLE Accounting Firm

Moshe Klein & Associates, Ltd.

www.mkabusiness.com * 888-432-8187 * Since 1982

-Internal Financial Reports

o Cash flow analysis reports will be created monthly to show you details and
summaries relative to your income & expenses as reported to our firm.
o User friendly monthly reports will be created for your business including but not
limited to:
▪ P&L monthly roll up (income & expenses)
▪ P&L detail
▪ Balance sheet summary
▪ Year over year analysis (shows business trends)
▪ Accounts Payable aging report
▪ Accounts Receivable aging report
▪ Uncategorized income & expense transactions
o You will receive monthly financial reports no later than the last day of the
month following month end close. Example – you will receive YTD financial
reports for January through April of a given year no later than the last day in
May.
o All reports will be uploaded into a secure document sharing account that will be
provided to you at no charge. Only you and your designated associates will have
access to this account. Its understood and expected that you will review each
report timely and carefully and that you will advise MKA staff in writing and
through the document sharing file regarding any changes or adjustments that
might be necessary within 30 days of when those reports were sent out to you.
MKA takes no responsibility for clients that do not review financial reports
carefully and identify adjustments and changes in a timely manner and/or notify
MKA of those required adjustments in writing via the secure document sharing
file system.
What We Won’t Do

• We will make no attempt to adjust or modify the records that you provide to us or
allow us to have access to.
• We will make no audit or other verification of the data you submit. We may provide
reports that contain portions of financial information; these reports are for internal
management use only.
• We will not perform any compilation or audit of the financial information that you
have provided to us.
• We do not at any time provide legal services or offer legal advice of any type.
• We have not been requested to discover errors, misrepresentations, fraud, illegal
acts, or theft. Therefore, we have not included any procedures designed or intended
to discover such acts, and you agree we have no responsibility to do so.

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 The AFFORDABLE Accounting Firm

Moshe Klein & Associates, Ltd.

www.mkabusiness.com * 888-432-8187 * Since 1982

What We Need from You:

To perform our services, we will need to obtain information on a timely and periodic basis
from your company. These items include all the input such as check registers, bank statements,
customer account information, customer invoices, sales ledgers and receipts, sales tax account
information, vendor information, purchase orders and vendor invoices, federal tax ID number,
payroll information, employee data, unemployment account information, and any other information
that we may require to complete the work of this engagement.

Our service fees are based upon the understanding that our firm will export data directly
from your banks and credit card companies into QB. We will assist you to set up secure accountants
access for our staff so that they can access these transactions as needed to perform bookkeeping and
accounting services. Additional fees may apply for transactions that have to be manually data
entered from paper or PDF statements.

Hardware and Software Warranties:

During the course of the engagement, we may recommend a purchase and installation of
computer or technological hardware, software, communications, or services by your company.
Warranties, to the extent they exist, are provided only by the manufacturer/vendor of those
computer products.

Services Outside the Scope of this Letter:

You may request that we perform additional services at a future date not contemplated by
this engagement letter. If this occurs, we will communicate with you regarding the scope and
estimated cost of these additional services

Limitation of Liability:

Unless resulting from willful misconduct, the liability of MKA and / or its employees and
contractors for any type of damages is limited to the amount of MKA fees billed to the client under
this agreement or any other service agreement in place with MKA.

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 The AFFORDABLE Accounting Firm

Moshe Klein & Associates, Ltd.

www.mkabusiness.com * 888-432-8187 * Since 1982

Fees:

The basic fee for these services will be $99.00 per month. This basic flat monthly fee
includes up to two hours of bookkeeping and accounting services by MKA staff. Hourly fees
outlined below will apply for any and all services requested and/or provided over and above the
basic flat monthly fee. Higher fees may apply depending on the number of transactions monthly
and the type of bookkeeping work that is needed. Additional fees may apply for bookkeeping that is
done manually from data received on paper statements or documents. We strongly encourage you to
provide secure accountants access on – line to our staff.

There may be other one time or monthly fees based upon the services that you select.

• Invoices will be rendered monthly and are payable on presentation.

• All billing is done in advance at the beginning of each month. Example: Billing on
the first day of each month will cover services for that month.
• All payments are due on the first of each month for services to be rendered that
month.
• Any additional billing over and above the base fee will be billed in the month
following when services are rendered.

Basic fee and additional fee explanation:

• $99 monthly basic service fee – includes up to 100 transactions and up to two
business checking accounts or credit cards to be reconciled. This includes but is not
limited to up to one hour monthly of bookkeeping services and up to one hour
monthly of accounting services. Unused time cannot be rolled over into future
months and credits for unused time cannot be issued. Clients should not incur any
additional fees if services and time fall within this project scope/range.
• $60 per hour will be billed for any bookkeeping services required, requested
and/or provided to the client over and above the one hour monthly included in the
basic package outlined above
• $90 per hour will be billed for any accounting services required, requested and/or
provided to the client over and above the one hour monthly included in the basic
package outlined above
• $150 per hour will be billed for any consulting services required, requested and/or
provided to the client.

You will NEVER be billed for services that have not been approved by you in advance.

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 The AFFORDABLE Accounting Firm

Moshe Klein & Associates, Ltd.

www.mkabusiness.com * 888-432-8187 * Since 1982

Payment for Services:

All clients must provide MKA with a valid credit card to have on file for regular monthly
billing.
A separate credit card authorization form outlines the terms and conditions.

Our firm charges late fees for each invoice not paid according to terms. Every invoice paid
after the 15th of each month incurs a $25 late charge and 2% of the unpaid balance will be added
each month thereafter until the full balance is paid.

The client understands and agrees that in the event that it becomes necessary for MKA to
retain the services of an outside collection agency and/or an attorney to collect fees for services
rendered in good faith, that the client will be responsible for the cost of collections including but not
limited to all collection fees, attorney fees, court costs, and other charges incurred by MKA in the
collection process. Disputes will be adjudicated in Cook County Illinois.

Changes to this agreement must be in writing and approved by both parties.

Service Termination:

Either party can terminate this month to month agreement upon receipt of 30 days written
notice, for any reason at all. MKA never charges termination fees or cancellation penalties.

I have read and understand the above engagement letter. The purpose of this engagement letter is
to clearly spell out what MKA does and doesn’t do and, what the client’s obligations are. I fully
understand that I can cancel services with MKA at any time, with 30 days advance notice in
writing. No questions will be asked and no explanations are required.

I understand that by signing below I am not authorizing any charges to my credit card.

______________________________ _____________________________
Name of company (Print) Name of client authorizing services (Print)

______________________________ ______________________________
Today’s date Signature of client authorizing services (Sign)