Terms of Business
This document, together with the Engagement Letter, form the Contract between the client, the entities and Nick Hoogeveen & Associates from which standard we work.
Accounting services and responsibilities
Nick Hoogeveen & Associates provide a full range of service options, some of which you may wish to consider for the future:
- To work with you on developing and growing your business so that it reaches your objectives and longer term goals. This may include business coaching, helping with developing business and marketing plans, and assisting in monitoring your progress.
- The preparation of financial statements on an annual basis for the calculation of your taxable income.
- Preparation of GST returns and trading results on regular monthly, two monthly or six monthly periods.
- Keeping you informed on significant changes to tax and other business related legislation.
- Completing your tax return from information provided by you. Assisting and advising on the appropriate type of accounting recording system that is suitable to your business.
It is understood and agreed that:
- We will provide the services described in our Terms of Engagement Letter, Preparation of Financial Statements and Tax Returns.
- If financial reports are required for non-company entities you instruct Nick Hoogeveen & Associates to prepare Special Purpose financial reports which are solely for the benefit of the entity in accordance with the principles of the Income Tax Act 2004. If financial reports are required for companies you instruct Nick Hoogeveen & Associates to prepare financial reports under the Framework for Differential Reporting.
- The financial statements and tax returns will be compiled from information provided by you. In accordance with the Compilation Engagement Standards issued by the Chartered Accountants Australia New Zealand (CAANZ), a disclaimer will be attached by us to the financial statements and must remain attached to the financial statements when distributed to any other party.
- The compilation services will not result in the expression of an audit opinion or review opinion or provide any form of assurance on the financial statements. It is not intended that these compilation services and this engagement for our professional services be relied upon by you to prevent or detect fraud and error.
- You will confirm for the purposes of the Privacy Act 1993 that the information contained in the Annual Reminder questionnaire is provided to Nick Hoogeveen & Associates to utilise that information for that purpose in such manner as they may consider appropriate including, by way of example and not limitation, the preparation and completion of annual accounts and income tax returns, the provision of information to Benchmark IT for statistical analysis and to your banks, solicitors and other advisors.
- We will prepare the financial statements at your request and for your purposes only and we will not be liable for any loss, claim or demand by any third person.
- Our disclaimer will be attached when distributing the financial statements to third parties.
- Our work will be based solely on the information provided, the circumstances made known to us and the assumptions set out in our correspondence. We rely on you bringing to our attention as soon as possible any changes in the information as originally presented as it may impact on our advice.
- We will rely on the information supplied by you in performing our services under this agreement and will not independently verify the accuracy of such information. As appropriate, however, we may seek clarification of information or ask you for additional information.
- We will report to you in accordance with the terms set out in the Engagement Letter. You may make copies of any reports for your own internal use but you must not provide the report or copies of it to any third party without first obtaining our written consent. Such consent will only be granted on the terms we deem appropriate which will include that we accept no duty or responsibility to any other party who may seek to rely on our report. In some cases appropriate releases from third parties may be required.
- Changes in the law and in interpretations may take place before our advice is acted upon or may be retrospective in effect and we assume no responsibility for changes occurring after the date of completion of the relevant services.
- You have complied with all GST requirements and in particular hold a valid tax invoice for every input credit claimed.
- Nick Hoogeveen & Associates will not be held liable for incomplete or erroneous information supplied by you, particularly transactions occurring outside the ordinary accounting records such as property or barter transactions.
- Where you are acting as a trustee you will act at all times in the best interests of the beneficiaries and that you have read and understood the trust deed, have no conflicts of interest and will not make important decisions without prior approval of the professional/independent trustee.
Ownership of information
- Intellectual property rights in all documentation, system, materials, methodologies and processes brought to the assignment or created in the course of the assignment shall remain and be vested in Nick Hoogeveen & Associates.
- Any work papers prepared by us in relation to your engagement remain our property.
It is agreed that you will work with us and provide us with all reasonable and necessary assistance so that we can provide our Services to you.
This includes :
- It is understood and agreed that you will provide accurate and complete information necessary to compile such statements and that the responsibility for the accuracy and completeness of the assertions in the financial statements remains with you. A taxation questionnaire will be sent to you for completion and returned to us at the end of every financial year by email or hard copy.
- Information to be given to us on a timely basis;
- Updating any information where there has been a material change to the information, including telling us if any of your circumstances change during the course of the Services.
- Where Nick Hoogeveen & Associates prepares GST, PAYE, FBT, income tax or any Inland Revenue returns on the client’s behalf, this does not absolve you of your responsibility to meet your IRD obligations.
- You agree to provide in a timely fashion all information and documents reasonably required to enable us to provide the services. Unless otherwise stated in the Engagement Letter, we will not independently verify the accuracy of such information and documents and we will not be liable to any loss or damage arising from any inaccuracy or other defect in any information or documents supplied by you.
- We will use our best endeavours to carry out our obligations in the Engagement Letters or otherwise agreed, and complete the Services in a timely and efficient manner. However, unless both parties specifically agree otherwise in writing, the dates contained in the Engagement Letters or otherwise advised are indicative dates intended for planning and estimating purposes only and are not contractually binding.
Change to services
- Either of us may request changes to the services to be provided or changes to any other aspect of the Terms of Business. Both parties agree to work together to enable both parties to assess the impact of any requested changes on the cost, timing or any other aspect of the services.
Services not provided
- Nick Hoogeveen & Associates does not provide legal or investment advice. Any opinion expressed by us concerning legal or investment requirements should be confirmed by the appropriate professional.
- Nick Hoogeveen & Associates Services do not include audit engagements and, accordingly, no assurance will be expressed.
- You accept responsibility for your own insurance and ACC cover.
- We would point out that from time to time the IRD will undertake a review of returns that have been filed, and it should be appreciated that our annual fee does not allow for that eventuality. In the event of a review that requires an input from us, we would be available to assist as required, and the fee for those services would be as agreed at the time.
- In the event the IRD selects your enterprise for review or audit, any work required from our firm will be a separate engagement and we will charge for our time based on the hours of work involved.
- You agree to link your tax records to Nick Hoogeveen & Associates agency list at the Inland Revenue Department for all related entities and to make enquiries at the Inland Revenue Department from time to time regarding your tax affairs.
- You authorise us to obtain from relevant financial institutions any information necessary to assist with the compilation of your financial statements and tax return.
- You authorise Nick Hoogeveen & Associates to seek any additional information they may require for the purpose of preparing your financial statements and statutory requirements from Inland Revenue Department, Accident Compensation Corporation, Registrar of Companies, your Solicitor, Advisors, Employees, Bank or other financial institution or Government body and you authorise all the above to supply such information. You also authorise Nick Hoogeveen & Associates to access any information they require by way of an on-line access link to Inland Revenue Department and Accident Compensation Corporation.
- We may collect Personal Information and other relevant information about you for the purposes of providing the Services to you. If we do, you authorise us to hold, use and disclose such information as is necessary to affect the purpose. We agree to handle all Personal Information about you in accordance with the Privacy Act 1993 and you may have access to and correct any such Personal Information as provided for under the Act.
- ‘Confidential Information’ means all financial, business, trade secrets, and other information received or acquired directly or indirectly by a party to this engagement under or in connection with the Services.
- Each of us agrees to protect and keep confidential any confidential Information that is given to us by the other.
- To afford the maximum protection to your confidential interests, all employees of Nick Hoogeveen & Associates are employed under Individual Employment Agreements which contain a clause strictly forbidding the unauthorised disclosure of information.
- The Chartered Accountants Australia New Zealand (CAANZ), may require access to your entity’s records and information in our possession which support the working papers relating to your entity’s affairs for the purpose of the Institute’s quality assurance function ie. Practice Review.
- You will receive our fees invoice on completion of your assignment. On larger assignments progress invoices may be issued. Our fees invoice all work for all your tax entities. Our fees will be addressed to your Company, Trust or Partnership as the main entity and could include all work for all your tax payer entities. You are most welcome to pay our fees with separate cheques and the accounting costs recorded in each relevant entity. All invoices are due for payment on the 20th of the month following invoice. So that we can keep providing our high level of service we ask that you pay your account on time.
- When accounting for a limited liability company or family trust, you will personally guarantee payment of Nick Hoogeveen & Associates fees.
- On discussion with you, refunds received by Nick Hoogeveen & Associates on your behalf, from the Inland Revenue Department, may be used to pay any outstanding monies owed by you to Nick Hoogeveen & Associates.
- Fees rendered by our firm are based on the value of time spent on each assignment by our principle and staff and on the levels of skill and responsibility involved. There are no additional disbursement costs for telephone calls, copying etc.
- Expenses will be charged separately and include any travel, software services and document handling (photocopying, printing, fax and courier etc.) incurred in connection with the services. Any special expenses arrangements will be agreed and set out in the Engagement Letter.
- You acknowledge and agree that Nick Hoogeveen & Associates reserve the right to retain possession of all your information relating to the Services until all outstanding fees have been paid.
Late or Overdue Fees
- If payment of any fee is not received by the due date Nick Hoogeveen & Associates may charge interest on the balance outstanding after the due date, at a rate of 1% per calendar month or part thereof compounded from due date to date of actual payment.
- If a client’s debt is passed onto a third party, the client will be responsible for ALL associated recovery costs.
- Nick Hoogeveen & Associates may withdraw our services and decline to continue further work until the fee is paid in full or until you have agreed an acceptable repayment arrangement with us. Should services be withdrawn we will not be held liable for any penalties or interest charged or accrued as a result of late filing of tax returns or other documents during the period that services are withdrawn.
- In the event that a disagreement arises over an invoiced fee for the Services, and both parties cannot mutually agree on an amicable resolution, then we both agree to resolve the matter through the fee resolution service provided by Chartered Accountants Australia New Zealand (CAANZ). Information on the fee resolution service process and costs can be found on the Chartered Accountants Australia New Zealand (CAANZ) website.
- Any complaints that arise in the course of Nick Hoogeveen & Associates providing the Services should be directed to the person responsible for providing the Services.
- Every complaint will be investigated and parties in the first instance will endeavour to agree to an amicable resolution.
- Where a resolution cannot be agreed upon, the complaint will be referred to a mediator or the appropriate Chartered Accountants Australia New Zealand (CAANZ) complaints forum for resolution before you commence legal proceedings.
Conflicts of Interest
- It is acknowledged that conflict of interests may arise as a result of our client base. Nick Hoogeveen & Associates agree that we will evaluate and manage conflicts of interests with the appropriate safeguards. Where necessary, we will obtain your written consent before continuing to act.
- If the conflict of interest cannot be managed within the bounds of the Chartered Accountants Australia New Zealand (CAANZ) Code of Ethics, we have the right to terminate our engagement with you.
- At any time by giving the other 30 days written notice; or
- Immediately if the other becomes insolvent or otherwise ceases to carry on business or commits any material breach of this Agreement that is either incapable of being remedied or is not remedied within 14 days of receipt of a notice requiring the breach to be remedied.
We may terminate this Agreement if :
- You fail to meet your obligations under this Agreement including to pay our Fees within the time specified or to provide us with adequate Information or instructions; or
- There is a change of circumstances beyond our reasonable control that prevents us from providing the Services to you.
If this agreement is terminated you agree to pay us the Fees for any work we have done and any expenses we have incurred up to the date of termination.
- Each of us agrees that we may communicate with each other electronically. You acknowledge that electronic transmissions are inherently insecure, can be corrupted or intercepted, may not be delivered and may contain viruses. Neither of us is responsible to the other for any loss suffered in connection with the use of e-mail as a form of communication between us. You consent to receiving such messages until such time as you notify us in writing that you no longer wish to receive them.
- In accordance with the Unsolicited Electronic Messages Act 2007, you consent to receiving emails, texts or other electronic transmissions such as newsletters, notification of seminars, items of interest or promotional material from us, unless you notify us to the contrary.
- All services are provided subject to the terms of engagement signed by both parties. Any alterations to those terms will be confirmed in writing.
- In case of any conflict between the website Terms of Business and the Terms of Engagement agreement, the engagement agreement will prevail.