©2011 . All rights reserved.
Altaf Noor Ali, Chartered Accountants
Our Expertise adds Credibility to Financial Information.
Sample of Proposal for Accounting Services
Date and name of the client withheld
Re: Proposal for Accounting and Related Services.
This is with reference to our meeting with yourself and Mr. Mubeen for setting up a financial accounting system in your organisation.
We are pleased to convey our willingness to provide a solution within the following framework.
As agreed there are three major parts of setting up a financial system and are proposing our fees using the same basis, as follows:
Total cost … … ... … … Rs. 180,000.
Part 1: Standard Operating Procedures Rs. ..0,000
The specific deliverables in this area are:
Transactions with shareholders for increase in capital, dividends, etc. Rs. ...0,000
Transactions with group affiliates & account reconciliation Rs. ...0,000
Transactions with customers Rs. ...0,000
Procedure for acquisition disposal of tangible long-term assets Rs. ...0,000
Procedure for payment to vendors for goods and services Rs....0,000
Procedure for payment to employees for travel, training, and other dues Rs. 10,000
Transactions with government tax regulators Rs. 10,000
Transactions with bankers Rs. 10,000
Record maintenance Rs. 10,000
Part 2: Chart of Accounts Rs. 50,000
The specific deliverables in this area are:
Chart of accounts Rs. 5,000
Scope of head of accounts Rs. 5,000
Revenue recognition and cost matching policies for software projects Rs. 5,000
Allocation of common costs to projects Rs. 5,000
Accounting policiesto be used in preparing financial statements Rs. 5,000
Recording of bills from vendors and service providers Rs. 5,000
Payroll processing Rs. 5,000
Disposal of fixed assets and recording of advances and prepayments Rs. 5,000
Developing source documents for cash and bank transactions Rs. 5,000
Budget preparation policies Rs. 5,000
Flow charts depicting processes Complimentary
Part 3: Electronic Data Processing of Accounting Information Rs. 40,000
The specific deliverables in this part are:
Initial set-up and customisation of software Rs. 10,000
Transaction testing, input of transactions since incorporation to date Rs. 10,000
Hands-on training to 1 finance staff on data-input output security back-up Rs. 15,000
Form of financial statements and accompanying notes Rs. 05,000
Finance Department - Standard Operating Procedures.
The objective of F-SOP is to lay a discipline for functioning of Finance Department with basic contol levels, for activities of recurring nature.
The SOP will govern the relationship of Finance with the rest of the departments in the company. Flow charts will be used for depicting a process. For example, the procedure to be followed if technical department wishes to order hardware/software items or to get hardware items repaired, the procedure for periodic physical verification of fixed assets, the documents to be attached with voucher for processing payment by Finance, signing of cheques, etc.
F-SOP will also deal with the way the company’s Finance function will interact with its stakeholders which include, inter alia, customers, group affiliates, vendors/suppliers of goods and services, employees, bankers, government regulations about taxation, and shareholders. However detailed functional/technical standards to be followed in other departments like developing software or employment policies (for disciplinary action) are not within its scope.
This part also involves developing basic (not all) source documents which form the basis for processing of accounting information, e.g. Purchase Order, Work Order, Credit Notes, Capital Expenditure Approval, Travel Request, Employee Reimbursement Forms etc.
The F-SOP requires constant revision to keep it current. The cost of revisions is not included above.
Chart of Accounts. The purpose of chart of accounts and accounting policies is to guide the Finance Management in accurately recording the routine transactions with reference to the activities identified in the first part.
There are different ways of recording financial transactions. Our aim will be to reach to a standard way of recording financial transaction. For each head of account we will identify the transactions to be recorded in the said account. This will provide uniformity and reduce the chances of errors and misreporting.
Two major problems addressed will be allocation of common costs and valuation of on-going software development projects as on a financial date. The chart of accounts will be developed with reference to the organisation chart.
Another point of emphasis here will be to set-up a budgetary system that will help management evaluate financial position versus actuals.
Source documents to be used as a basis for input of accounting information will be developed here which will include cash and bank vouchers, petty cash vouchers, general journal voucher, invoices, etc.
Electronic processing of financial data. The purpose here is to identify a software package capable of addressing the information needs of corporate management, group management, tax authorities, shareholders, creditors, etc.
We will provide a complete solution and train the staff nominated by yourself to process the accounting information accurately. We will provide continous support for three months without any extra charge after the user acceptance test.
Terms of Acceptance:
Development in areas other than ones mentioned above will be charged separately.
The cost of software is not included in above. This is likely to be around $ 400 and will be paid to the software vendors by the company at actuals.
The cost of providing continuous support for the software for three months is included in above package.
The out of pocket expenses for additional copies, binders, floppies, postage, conveyance etc will be charged at actuals.
It will take us 8-12 weeks to deliver the solution with your cooperation.
Our offer is valid for fifteen days only.
Twenty-five percent to be payable as mobilisation advance on the whole assignment. Balance payable with completion of each module, adjusting from mobilisation advance amount related to that module only.
We hope that you find the above proposal to be suitable to your needs. Please feel free to be in touch for further clarification.
Altaf Noor Ali,
Sensitive information withheld