SCHEDULE OF SERVICES (703) WRITING A BUSINESS PLAN

SCHEDULE OF SERVICES (703) WRITING A BUSINESS PLAN / CASH FLOW / PROFIT FORECAST

 

This schedule should be read in conjunction with the engagement letter and the 300 Standard terms & conditions | Massey Accounting Company

 

Our service to you

 

You have engaged us to prepare your Business Plan / Cash Flow Forecast or Profit Forecast as agreed.

We will prepare this document from the information and explanations provided by you and covering the period as agreed.

We will discuss with you any commentary on the figures.

We will discuss with you any assumptions that have been used.

We will not attach a report to the forecasts.

We will not be carrying out any audit work as part of this assignment and accordingly will not verify the assets and liabilities of the company, nor the items of expenditure and income. To carry out an audit would entail additional work to comply with International Standards on Auditing so that we could report on the truth and fairness of the financial statements. We would also like to emphasise that we cannot undertake to discover any shortcomings in your systems or irregularities on the part of your employees.

If an audit of the accounts is required, you will need to notify us in writing. Should our work indicate that the company is not entitled to exemption from an audit of the accounts, we will inform you. If we decide to undertake an audit assignment at your request, a separate engagement letter will be required.

The intended users of the forecasts are the company directors.

Our responsibility to you

We have a professional duty to compile accounts that conform with generally accepted accounting principles. Where necessary we will inform you and suggest amendments be put through the accounts before being published. We have a professional responsibility not to allow our name to be associated with accounts that may be misleading. In extreme cases when this matter cannot be resolved, we will withdraw from the engagement and notify you in writing.

The forecasts are prepared for your internal use within your business by the company directors. They should not be shown to any other party without our prior agreement.

We have set out the agreed scope and objectives of your instructions within the letter of engagement. Any subsequent changes will be discussed with you and where appropriate a revised schedule of services will be agreed. We shall proceed on the basis of the instructions we have received from you and will rely on you to tell us as soon as possible if anything occurs which renders any information previously given to us as incorrect or inaccurate. We shall not be responsible for any failure to advise or comment on any matter that falls outside the specific scope of your instructions. We cannot accept any responsibility for any event, loss or situation unless it is one against which it is the expressed purpose of these instructions to provide protection.

In arriving at our conclusions, we will use our knowledge of the business. However, some of the issues that we will discuss, and therefore the conclusions drawn, will rely on the answers that you provide us with, which we may ask you to confirm to us in writing. We therefore accept no responsibility for losses incurred as a result of your actions or lack of actions on the accounts. 

We are bound by the ethical guidelines of ACCA and accept instructions to act for you on the basis that we will act in accordance with those ethical guidelines. A copy of these guidelines can be viewed at our offices on request or at www.accaglobal.com.

Your responsibility to us

You are responsible for providing us with the necessary information, assumptions and prime records for the preparation of the forecasts, including:

1.    Sales records
2.    Purchase records
3.    Bank statements
4.    Details of bank and cash payments
5.    Details of bank and cash receipts
6.    Stock and work-in-progress details
7.    Access to your accounting records

We have also agreed that you will provide the following:

1.    A record of the amounts owed to the business
2.    A record of amounts owed by the business
3.    A list of accruals
4.    A list of prepayments


The advice that we give can only be as good as the information on which it is based. In so far as that information is provided by you, or by third parties with your permission, your responsibility arises as soon as possible if any circumstances or facts alter, as any alteration may have a significant impact on the advice given. If the circumstances change therefore or your needs alter, advise us of the alteration as soon as possible in writing.

It is your responsibility to safeguard the assets of the business and for taking reasonable steps for the prevention and detection of fraud and other irregularities with an appropriate system of internal controls.

You are responsible for making available to us, as and when required, the business accounting records and all other relevant records and related information, including minutes of management and shareholders’ meetings, for the purpose of this engagement. You are responsible for providing us with the information and explanations necessary for the preparation of cashflow and profit forecasts. 

You are responsible for checking and agreeing the validity of the assumptions that are used in the preparation of the forecasts.


Limitation of liability

Our services as detailed above are subject to the limitations on our liability set out in the engagement letter and in our 300 Standard terms & conditions | Massey Accounting Company of business. These are important provisions, which you should read and consider carefully.

The forecasts relate to future events and consequently actual results are likely to differ from the forecasts. We cannot accept any responsibility for any loss or damage occasioned to any person acting or refraining from acting as a result of any material or report contained in the forecasts.

The forecasts are prepared for your internal use within your business by the directors. They should not be shown to any other party without our prior agreement.

Other services

You may request that we provide other services from time to time. For such work we will issue a separate letter of engagement and scope of work to be performed accordingly.

Because rules and regulations frequently change you must ask us to confirm any advice already given if a transaction is delayed or a similar transaction is to be undertaken.