Sample Accounting and Financial Policies and Procedures Manual Engagement Agreement

Engagement Agreement

Date: October 26, 2023

Parties:

Bestar Consulting Pte. Ltd.

UEN: 201408503N

Address: 23 New Industrial Road, #04-08 Solstice Business Center, Singapore 536209

Represented by: [Authorized Representative Name], CEO (hereinafter referred to as "Bestar")

[Client Company Name] Pte. Ltd.

UEN: [Client's UEN Number]

Address: [Client Address], Singapore [Postal Code]

Represented by: [Client Representative Name], [Title] (hereinafter referred to as "the Client")

1. Purpose of Engagement:

1.1. The Client hereby engages Bestar to develop a comprehensive Accounting and Financial Policies and Procedures Manual (hereinafter referred to as "the Manual") tailored to the Client's specific business operations and in compliance with Singapore Financial Reporting Standards (SFRS(I)s) and applicable Singapore laws and regulations.

1.2. The Manual will serve as a guide for the Client's employees in maintaining accurate and reliable financial records and implementing effective internal controls.

2. Scope of Services:

2.1. Bestar will perform the following services:

Conduct a thorough assessment of the Client's existing accounting and financial processes.
Develop a customized chart of accounts.
Establish policies and procedures for revenue recognition, accounts receivable, and accounts payable.
Develop policies and procedures for inventory management, fixed asset management, and cash management.
Define internal control procedures to mitigate financial risks.
Create financial reporting procedures, including the preparation of financial statements and management reports.
Provide a draft Manual for the Client's review and feedback.
Incorporate the Client's feedback and finalize the Manual.
Provide the finalized manual in a digital and hardcopy format.

2.2. This engagement excludes:

* Implementation of the Manual.

* Provision of audit or assurance services.

* Tax advisory services.

* Any services not explicitly mentioned in this agreement.

3. Client's Responsibilities:

3.1. The Client will provide Bestar with all necessary information and documentation accurately and in a timely manner.

3.2. The Client will designate a responsible individual to liaise with Bestar.

3.3. The Client will review and provide feedback on the draft Manual within [Number] business days of receipt.

3.4. The Client is responsible for the final usage and implementation of the manual.

4. Bestar's Responsibilities:

4.1. Bestar will perform the services with professional competence and due care, in accordance with the Singapore Standards on Auditing (SSAs), the Code of Professional Conduct and Ethics for Public Accountants and Accounting Entities and other relevant professional standards.

4.2. Bestar will maintain the confidentiality of all client information in accordance with the Personal Data Protection Act (PDPA) of Singapore.

4.3. Bestar will provide regular updates to the Client on the progress of the engagement.

5. Timeline and Deliverables:

5.1. The engagement will commence on [Start Date] and is expected to be completed by [Completion Date].

5.2. Key milestones and deliverables:

Phase 1: Information gathering and assessment – [Start Date] to [Phase 1 Completion Date].
Phase 2: Draft Manual development – [Phase 1 Completion Date] to [Phase 2 Completion Date].
Phase 3: Client review and feedback – [Phase 2 Completion Date] to [Phase 3 Completion Date].
Phase 4: Finalization and delivery of the Manual – [Phase 3 Completion Date] to [Completion Date].

5.3. Deliverables:

Draft Accounting and Financial Policies and Procedures Manual (digital format).
Final Accounting and Financial Policies and Procedures Manual (digital and hardcopy formats).

6. Fees and Payment:

6.1. The total fee for this engagement is [Amount] Singapore Dollars (SGD).

6.2. Payment schedule:

[Percentage]% upon signing this agreement.
[Percentage]% upon delivery of the draft manual.
[Percentage]% upon delivery of the final manual.

6.3. Any out-of-pocket expenses incurred by Bestar will be billed separately with prior approval from the Client.

6.4. Late payment may attract a late payment fee of [Percentage]% per month on the outstanding amount.

7. Confidentiality:

7.1. Both parties agree to maintain the confidentiality of all information disclosed during this engagement.

7.2. Bestar will comply with the PDPA in handling the Client's personal data.

8. Liability and Indemnification:

8.1. Bestar's liability for any claims arising from this engagement shall be limited to the fees paid by the Client.

8.2. Both parties agree to indemnify each other against any claims arising from their respective negligence or breach of this agreement.

9. Termination:

9.1. Either party may terminate this agreement with [Number] days' written notice.

9.2. In the event of termination, the Client will be responsible for fees incurred up to the date of termination.

10. Governing Law and Dispute Resolution:

10.1. This agreement shall be governed by and construed in accordance with the laws of Singapore.

10.2. Any disputes arising from this agreement shall be resolved through amicable negotiation. If negotiation fails, the dispute shall be referred to mediation or arbitration in Singapore.

11. Entire Agreement:

11.1. This agreement constitutes the entire agreement between the parties and supersedes all prior agreements and understandings.

Agreed and Accepted:

____________________________

[Accounting Firm Representative Name]

CEO

Bestar Consulting Pte. Ltd.

____________________________

[Client Representative Name]

[Title]

[Client Company Name] Pte. Ltd.

How Bestar can Help

Sample Accounting and Financial Policies and Procedures Manual Engagement Agreement

When it comes to accounting and financial policies and procedures, particularly in a regulated environment like Singapore, the expertise of Bestar is invaluable. Here's how we can help:

Ensuring Regulatory Compliance:
- We possess in-depth knowledge of Singapore's legal framework, including the Companies Act, ACRA regulations, and other relevant laws.
- We can help draft policies that adhere to these regulations, minimizing the risk of legal penalties.
Risk Management:
- We can identify potential legal risks associated with financial practices and recommend mitigation strategies.
- This includes addressing issues related to fraud, money laundering, and other financial crimes.
Contractual Matters:
- We can review and draft contracts related to financial transactions, ensuring they are legally sound and protect the organization's interests.
Financial Reporting Standards (FRS) Compliance:
- We have a thorough understanding of FRS and can ensure that financial statements are prepared accurately and in accordance with these standards.
Tax Planning and Compliance:
- We can provide expert advice on Singapore's tax laws, including corporate income tax and GST, helping organizations optimize their tax liabilities and ensure compliance.
Internal Control Development:
- We can help design and implement robust internal controls to safeguard assets, prevent fraud, and ensure the accuracy of financial records.
Audit and Assurance:
- We can conduct internal and external audits to assess the effectiveness of financial controls and ensure the reliability of financial information.
Financial Advisory:
- We can provide strategic financial advice, including budgeting, forecasting, and financial analysis, to support informed decision-making.

Benefits:

Bestar ensures that policies comply with the law, while ensuring that they are practical and effective in managing financial operations.
This is especially important when dealing with complex financial transactions or regulatory issues.

In summary, engaging Bestar provides organizations with the necessary expertise to navigate the complexities of financial management and regulatory compliance in Singapore, promoting financial integrity and minimizing risks.

Request for Proposal

Sample Accounting and Financial Policies and Procedures Manual Engagement Agreement