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Engagement Letters: Budgets and Forecasting Terms

Budgets and Forecasting: Your Responsibilities

(1) You must only use the budget for internal use.

We agree to prepare a budget (‘the budget’) for the purpose stated. The budget will be for the exclusive use of you and must not be shown to any other party without our prior written consent.  You may not rely upon it for any other purpose whatsoever. We neither owe nor accept any duty to any other party and shall not be liable for any loss, damage or expense of whatsoever nature which is caused by their reliance on our budget.

(2) You will provide us with all information which we request for the purpose of preparing the budget.

You agree to make available to us the information we need to prepare the forecast. You agree to make full disclosure to us of all relevant information that may affect the forecast.

(3) You will electronically approve the budget.

You will approve and sign the budget thereby acknowledging responsibility for it and the estimates and assumptions on which it is based.

(4) We will no allow our name to be associated with professional work which we believe may be misleading.

We have a professional responsibility to not allow our name to be associated with accounting work that we believe may be misleading. We are not required to search for such matters, but if we become aware that information in the budget may be misleading we will discuss this with you so that appropriate adjustments or disclosures can be made. Where the adjustments or disclosures we consider appropriate are not made and we consider that the budget remains misleading, we will withdraw from the engagement. In these circumstances you agree that we have a right to invoice you for our time spent in preparing and discussing the budget with you as well as time spent on any other work that is not completed as a result of our resignation.

(5) You are responsible for general business and financial matters.

You are responsible for the following general business and financial matters (although we may assist under a separate service provision, for example: bookkeeping):

  • ensuring that, to the best of your knowledge and belief, financial information used by your business or for the budget is accurate and complete;
  • maintaining the accounting records of your business;
  • ensuring that the activities of your business are being conducted honestly;
  • safeguarding the assets of your business and taking reasonable steps for the prevention and detection of fraud; and
  • ensuring your business complies with the laws and regulations that apply to its activities, as well as preventing non-compliance and detecting any that occurs.

Budgets and Forecasting: Our Responsibilities

(1) We will prepare a budget (‘the budget’) for the purpose as stated.

We agree to prepare a budget (‘the budget’) for the purpose stated. The budget will be for the exclusive use of you and must not be shown to any other party without our prior written consent.

(2) We will prepare the budget only from the information which we are provided with.

We will draw up the budget from information and explanations provided by you. Our work will be limited to compiling the budget from the information we are provided with and then presenting it in an appropriate manner.

(3) We will help you draw up any estimates or assumptions which will be necessary within the budget.

We will work with you to draw up any estimates or assumptions that are necessary, but these will be based upon information provided by you. Therefore you will remain responsible for any estimates and assumptions.

(4) We will not accept any responsibility for any loss occasioned to any person acting or refraining from action as a result of any material or statements included in, or omitted from, the budget.

Since the budget relates to expected future events, the actual results will almost inevitably differ from the budget. Those differences may be significant. We will take due care to translate the information and explanations we are provided with into a meaningful budget based on your assumptions. However we cannot accept responsibility for any loss occasioned to any person acting or refraining from action as a result of any material or statements included in, or omitted from, the budget

(5) We will not be carrying out an audit.

Our work will not constitute an audit of the figures and information in the budget. We will not express any opinion on the budget. Our report will not extend to any accounts of your business taken as a whole.

(6) We will advise you of any shortcomings in your systems only as a by product of the work carried out.

We would like to emphasise that we cannot undertake to discover any shortcomings in your systems or irregularities on the part of your employees. However we will advise you if we come across anything of this nature in the course of preparing the forecast.

These ‘Engagement Letters: Budgets and Forecasting Terms’ were updated in October 2019.

What Our Clients Say

Your advice and support has been invaluable throughout this crisis period. I really appreciate it.

Paul Davidson
Encore Machinery Limited

I have worked with Richard for about 8 years and I couldn’t be happier with the level of service and commitment to the success of our business shown by him and his team. Richard is forward thinking and their desire to ‘go beyond’ and combine the accounting work with an appetite to assist in the success of our business is extremely valuable. I look forward to what the next chapter brings.

Gary Duffy
Enfonic (UK) Limited and Enfonic Limited

The team has been great at helping us get to grips with our income, expenditure and future expectations. This has supported us make decisions about the strategic direction of the business. I would highly recommend ‘Accounting & beyond’.

Suellen Morris
Okasan Marketing

We met with Richard early on in our start-up journey and it’s been great working with him and the team.  They are really keen to know what we’re doing and where we’re going and that’s not just about the numbers. We’ve been working with them to define what’s the best way forward and how we can maximise our sales and grow. Looking forward to seeing what the next few months bring!

Sharon Haylock
The Grandparent Hub Ltd