The Bookkeeping Engagement Letter serves as a formal agreement between professional bookkeepers or accounting firms and their clients in Indonesia. This document is essential when establishing a new bookkeeping service relationship or updating existing service terms. It comprehensively outlines the scope of services, professional fees, reporting requirements, and mutual obligations while ensuring compliance with Indonesian accounting standards, tax regulations, and business laws. The letter typically references key Indonesian regulations including Law No. 40 of 2007 on Limited Liability Companies and the Indonesian Financial Accounting Standards (PSAK). It's designed to protect both parties' interests while establishing clear professional boundaries and service expectations in the Indonesian business context.
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1. Letter Header: Professional letterhead, date, and recipient's address
2. Salutation: Formal greeting to the client
3. Introduction: Opening paragraph identifying the parties and purpose of the engagement
4. Scope of Services: Detailed description of bookkeeping services to be provided
5. Client Responsibilities: Clear outline of client's obligations and required cooperation
6. Professional Fees: Fee structure, payment terms, and billing arrangements
7. Timeline: Service frequency, reporting schedules, and key deadlines
8. Confidentiality: Commitment to maintain confidentiality of client information
9. Professional Standards: Statement of compliance with relevant accounting standards and regulations
10. Limitation of Liability: Standard disclaimers and limitation of professional liability
11. Termination: Conditions and process for ending the engagement
12. Acceptance: Signature blocks and acceptance terms
1. Additional Services: Description of supplementary services available, used when offering expanded service options
2. Team Assignment: Introduction of key team members, relevant for larger engagements or when specific expertise is required
3. Software and Systems: Details of specific accounting software or systems to be used, included when technical specifications are important
4. Dispute Resolution: Specific dispute handling procedures, included for higher-value or complex engagements
5. Insurance Coverage: Details of professional indemnity insurance, included when required by client or regulation
6. Quality Control: Description of quality assurance procedures, relevant for larger clients or complex engagements
1. Fee Schedule: Detailed breakdown of fees for different services and additional charges
2. Service Timeline: Detailed calendar of deliverables and reporting dates
3. Required Documentation: List of documents and information the client needs to provide
4. Specific Procedures: Detailed procedures for specific bookkeeping tasks or unusual requirements
5. Software Requirements: Technical specifications and software requirements if specific systems are to be used
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