Terms & Conditions

These Terms & Conditions outline the scope of services and responsibilities between Kaizen CPAs PLLC and the client (“Client”).

For the purposes of these Terms, “Client” refers to the individual, business, or other legal entity receiving services from Kaizen. Where applicable, the terms "business" or "company" refer to the entity operated by the Client or on whose behalf Kaizen provides services.

Kaizen CPAs PLLC, Kaizen CPAs + Advisors Private Limited, YPD HCM Inc. (doing business as Your Payroll Department, or “YPD”), and Kaizen Mgmt, Inc. are collectively referred to as “Kaizen.”

DEFINITION OF SERVICES

Small Business Packages

Kaizen offers three service levels for small business clients: Essential, Plus, and Premier. Each package includes a defined set of services, categorized as follows:

  • Accounting Services
  • Advisory Services
  • Management Reporting
  • Onboarding
  • QuickBooks Online Support
  • Specialty Services
  • Tax Preparation
  • Technology Stack

Package details and included features vary by tier. A separate summary or proposal outlines the specific services included in the Client’s selected package.

Accounting Services

Kaizen provides reconciliation of bank and credit card accounts, validation of general ledger accuracy, and maintenance of loan amortization and fixed asset schedules. Kaizen offers full accrual accounting and bill pay services based on the selected service level. Kaizen generally excludes accounts receivable and accounts payable services.

Kaizen also provides access to accounting support, including staff accountant availability to address inquiries related to transaction coding and general accounting matters.

Advisory Services

Kaizen provides strategic planning sessions, tax optimization (at a frequency determined by package level), general business advisory, Profit First advisory (available with Plus and Premier tiers), and support via virtual meetings in Microsoft Teams, phone, in person, and through the client portal. Kaizen schedules discussions based on the selected service tier. These may cover topics such as tax planning, business performance, operational changes, and related matters.

Management Reporting

Kaizen provides a statement of assets, liabilities, and equity and the related statement of revenues, expenses and retained earnings. Additionally, executive summary reporting and key performance indicators (KPIs) are provided at certain service levels. Kaizen also offers custom reporting upon request for multi-location businesses, franchise systems, coaching groups, and parent company structures.

Onboarding

Kaizen begins every service level with a structured onboarding process that sets expectations, ensures accurate financial records, and establishes the foundation for a strong working relationship. This process may include:

  • A kickoff call to review timelines, deliverables, and communication protocols
  • One or more Initial Strategy Sessions (ISS) to evaluate current operations, goals, and financial position
  • An updated chart of accounts aligned with reporting and advisory objectives
  • Review and cleanup of historical financial data to ensure accuracy and bring records current
  • A journal entry to align the books with the most recently filed tax return
  • Introductory training on QuickBooks Online (QBO) and Dext (typically 1 to 3 hours); additional training is billed at the standard hourly rate
  • A Coding Review Call (CRC) to confirm expense categorization and alignment with reporting needs
  • A Financial Statement Review Session (FSS) to walk through the first set of Kaizen-prepared statements and summarize key findings

QuickBooks Online Support

Kaizen provides support for the practical use of QuickBooks Online (QBO), including tasks such as writing checks and managing bank feeds. Support does not extend to QBO Payroll or third-party plug-ins.

Specialty Services

Kaizen offers project-based services that require additional research, analysis, and tailored deliverables. Depending on the nature of the engagement, Kaizen may perform these services within QuickBooks or through other platforms. Kaizen scopes these types of services and provides the Client with an estimated investment prior to the start of the project. 

Examples include, as necessary:

  • Cash management and cash flow projections
  • Budgeting and forecasting
  • Buy/sell agreements and business valuations
  • Loan application assistance
  • Financial modeling
  • Entity structure planning and setup
  • Support with the purchase, planning for the purchase, or sale of a business

Tax

Kaizen prepares and files the following tax returns and forms, as applicable:

  • Business entity federal income tax return
  • Business entity state income tax return(s)
  • Personal (1040) income tax return for the business owner
  • Forms 1099 (based on service level)
  • Sales tax returns

Notice and Audit Protection (NAP)

Kaizen includes this service within the year-end tax fee. NAP covers representation for federal and primary state business tax matters in the event of a notice, audit, or tax-related identity theft. Kaizen reviews and interprets notices, prepares responses, and serves as the business’s authorized representative—up to and including the appellate court level.

Technology Stack

Kaizen relies on the following platforms and services to support day-to-day accounting, communication, and payroll:

  • QuickBooks Online (QBO) serves as the standard accounting platform for all clients onboarded on or after January 1, 2025.
  • Qount Client Portal provides a secure, cloud-based platform for document sharing, task tracking, and communication.
  • Payroll services are delivered by Kaizen’s sister company, Your Payroll Department (YPD), using isolved for payroll processing, employee self-service, and HR tools and compliance support.
  • Dext supports digital receipt and expense management by extracting key data and syncing with QBO to streamline documentation and entry.
  • BILL facilitates electronic bill payment and approval workflows, offering a secure, cloud-based system for managing accounts payable.

Kaizen may also use ancillary software solutions or test emerging technologies to improve service delivery and operational efficiency. Use of such tools is determined based on relevance, performance, and client need.

TERMS OF SERVICE

Accounting

Kaizen delivers services on a recurring monthly basis and relies on the Client to provide timely, complete, and accurate information. If the Client does not submit the required information for a given month by the last day of the following month, Kaizen may classify that period as past-due.

Kaizen may charge additional fees and complete work for past-due periods alongside the next reporting cycle for which the Client submits timely information. Alternatively, Kaizen may complete past-due work during extended reporting periods, at its discretion, and will notify the Client of the schedule for completing any outstanding work. In either case, Kaizen may limit deliverables to the current reporting period and will not issue separate reports for individual past-due months.

Kaizen considers the engagement complete upon delivering the report for the most current period or upon termination of services, whichever occurs first. Kaizen does not issue refunds for services not rendered due to past-due periods.

Tax

Kaizen will prepare only the tax returns specifically listed in the agreed-upon proposal. Kaizen will prepare additional returns or tax years only if the Client provides written instruction and authorization. Kaizen limits the scope of services to the current, future, and/or tax years expressly identified in the agreement.

The Client is responsible for providing all information necessary to prepare complete and accurate tax returns, including details related to worldwide income. Kaizen will rely on the information and representations the Client provides, including any relevant data generated through accounting services, if applicable. Kaizen will not audit or independently verify the information the Client submits but may request clarification or additional documentation. The Client agrees to respond to such requests within three business days.

The Client bears final responsibility for the accuracy and completeness of all tax returns. Before signing or authorizing electronic filing, the Client must carefully review each return. Kaizen prepares tax returns solely for submission to the Internal Revenue Service and relevant state or local taxing authorities. Kaizen does not prepare these returns for use by third parties, such as lenders or investors. Accordingly, the Client agrees to indemnify and hold harmless Kaizen and its personnel from any claims arising from the use of tax returns for any purpose other than filing with tax authorities, regardless of the nature of the claim, including claims based on negligence.

The Client and the business entity remain solely responsible for identifying and fulfilling all state and local tax filing obligations, including but not limited to income, franchise, sales and use, payroll, and excise taxes. Kaizen does not assume responsibility to research or notify the Client of such obligations. At the Client’s request, Kaizen may coordinate with third-party specialists to assess potential filing requirements. If the Client fails to file a required return, taxing authorities may impose consequences such as an unlimited statute of limitations or penalties. The Client is responsible for all related penalties, interest, assessments, or damages. Kaizen does not accept liability for such outcomes.

Kaizen fulfills its tax preparation responsibilities upon delivery of the completed return(s) to the Client. If unresolved tax issues, processing delays, or untimely receipt of necessary information from the Client prevent timely filing, Kaizen may request an extension on the Client’s behalf. Kaizen expects to begin preparing returns within ten business days of receiving all required documentation. To meet standard filing deadlines, the Client must provide final year-end information no later than 45 days after the company’s fiscal year-end. If the Client cannot meet this deadline, the Client must notify Kaizen to request a filing extension.

Filing an extension may increase the period during which taxing authorities can audit a return or extend the statute of limitations. An extension may also result in penalties or interest. The Client remains responsible for all such amounts. Kaizen disclaims liability for penalties, interest, or missed compliance deadlines resulting from an extension.

The Client and the company must comply with all applicable federal, state, and local laws. The Client is solely responsible for determining and complying with the Patient Protection and Affordable Care Act (“ACA”), including any associated costs or penalties. Kaizen is not engaged to advise on ACA compliance. At its discretion, Kaizen may provide general information that may be helpful.

In accordance with federal law, Kaizen will not disclose the Client’s tax return information to any party outside the United States, to another preparer for second-opinion purposes, or to any third party for reasons unrelated to preparing the return, without prior written consent.

The IRS permits the Client to authorize limited discussions about the return with Kaizen for one year after the return’s due date. The Client grants this authorization by checking the “Third Party Designee” box on the return. Unless instructed otherwise, Kaizen will check this box to allow such discussions.

Certain communications involving tax advice may qualify for privilege. The Client may waive this protection by disclosing privileged information to a third party, including a government agency. To preserve privilege, the Client should consult Kaizen or legal counsel before sharing any potentially protected communications. If the Client authorizes Kaizen to disclose such information, the Client must provide written, advance consent.

If a third party—such as the IRS or a court—requests privileged information, Kaizen will notify the Client. If the Client instructs Kaizen not to comply, the Client agrees to indemnify Kaizen for any resulting expenses, including attorney’s fees, court costs, third-party adviser costs, and any penalties or fines incurred while asserting the privilege.

Taxing authorities may review the Client’s return(s). During an audit, the Client must provide supporting documentation when requested. The Client retains the right to appeal any proposed adjustments. Kaizen will provide audit support, upon request, as part of the Notice and Audit Protection included in the year-end fee.

Sales Tax

Sales tax returns and related payments are generally due either on the 20th day or the last day of the month following the reporting period, depending on the company's filing requirements and applicable state regulations.

Kaizen prepares and submits sales tax returns based on the information the Client provides. Kaizen does not audit or verify the submitted data. The Client is responsible for ensuring the completeness and accuracy of all information prior to submission. The Client must also determine the taxability of sales and use transactions in accordance with applicable tax laws.

Kaizen may initiate electronic funds transfers (EFT) from the Client’s bank account to remit sales or use tax payments. The transfer amount will be calculated using the information the Client submits. Kaizen considers services complete for each month once it has submitted the return, processed the payment, and notified the Client of the remittance amount and date.

The Client must provide complete and accurate sales tax information no later than the 10th day of each month to ensure timely preparation and submission. If the Client fails to meet this deadline or does not promptly notify Kaizen in writing of changes to filing frequency or due dates, Kaizen may be unable to submit the return or initiate payment on time.

The Client remains solely responsible for any penalties, interest, or other consequences resulting from incomplete, inaccurate, or delayed information. Kaizen is not responsible for failure to file, late filing, or incorrect filing caused by delays or errors in the information provided. If the Client is unable to make payment, Kaizen will consider its services complete upon notification of the amount due. Additional fees may apply for any work performed after the filing deadline to assist with payment coordination.

Forms 1099 Series

Kaizen will prepare Form(s) 1099, which must be delivered to recipients by January 31 and submitted to the IRS shortly thereafter. The Client is responsible for identifying all individuals or entities that require a Form 1099. Kaizen may assist with this determination upon request.

The Client must compile and submit summarized 1099 information to Kaizen by January 10. Kaizen will prepare the filings based on the information provided. If the Client does not submit complete information by January 10, Kaizen will prepare filings using the available data. Information received after the deadline may result in late filings and IRS penalties. The Client is solely responsible for any such penalties.

INDEMNIFICATION

The Client shall protect, defend, indemnify, and hold harmless Kaizen—as well as its officers, directors, shareholders, employees, agents, executors, personal representatives, successors, and assigns—on demand, from and against any and all losses, liabilities, deficiencies, penalties, fines, costs, damages, and expenses (including, without limitation, reasonable attorney and professional fees, and costs related to investigation, litigation, settlement, judgment, and interest).

This obligation includes any loss or expense Kaizen incurs as a result of the Client’s or the Client’s company’s intentional misrepresentation, concealment of information, negligence, or failure to fulfill the obligations outlined in these Terms of Service.

The Client and the Client’s company also agree to indemnify Kaizen and its representatives from any claims made by third parties that arise from the actions of the Client, the Client’s company, or their respective officers, directors, shareholders, employees, agents, successors, or assigns.

If any portion of these Terms of Service is found to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.

RECORDS RETENTION

While providing services, Kaizen may need to review and photocopy selected company records for use in its working papers. Kaizen will return original records to the Client upon request. The Client is responsible for retaining these records as appropriate. These documents serve as the business’s primary records and provide backup and support for financial reports and tax returns.

Kaizen retains ownership of its working papers, including any photocopies of Client records. Kaizen will store these materials in accordance with its records retention policy, which generally provides for a minimum retention period of four (4) years. After that period, Kaizen will destroy the files.

TERM OF SERVICE

Kaizen provides services on a month-to-month basis, starting on the date the agreement is signed. The agreement automatically renews each month unless the Client terminates it as outlined below or Kaizen replaces it with a new agreement.

Kaizen may adjust fees if the scope or nature of services changes during the year. Kaizen also conducts an annual fee evaluation based on factors such as economic conditions, developments in the Client’s business, and shifts in the professional landscape. Kaizen will communicate any resulting fee adjustments in advance.

SERVICE GUARANTEE

Kaizen stands behind the quality of its work. If the Client is not satisfied with a service, Kaizen may, at its discretion, refund a portion of the related fees or provide additional services to resolve the issue. Kaizen will determine the portion of fees tied to that specific service when issuing a refund.

To qualify for this guarantee, the Client must notify Kaizen within ten (10) days of service completion. Notice must be provided in writing—via email, postal mail, or the client portal.

TERMINATION

Either party may terminate this agreement at any time with 30 days’ written notice, which may be delivered by postal mail, email, or through the client portal. Once either party gives notice, Kaizen will stop monthly service fees within 30 days and will release all client data according to instructions from the Client or Kaizen. The Client must pay all outstanding fees for services rendered through the termination date in full within ten (10) days of termination. Fees are earned when paid and are non-refundable.

Kaizen may withdraw from the engagement without completing the work if the Client fails to comply with these Terms of Service, including by not providing requested information, documentation, or supporting explanations needed to prepare reports and returns. If the Client remains unresponsive for 60 consecutive days, Kaizen may terminate the agreement without further notice.

If any provision of these Terms of Service is found to be invalid or unenforceable, the remaining provisions will remain in full force and effect. If Kaizen initiates collection efforts to enforce payment, the Client must cover all reasonable costs, including attorney’s fees. After termination, Kaizen has no further obligation to provide services. Kaizen is not liable for any tax, interest, penalties, or damages (including consequential damages) resulting from failure to file, late filing, or late payment.

DESIGNATION OF CONTACT

Kaizen may request input or decisions from the Client throughout the course of services, especially on matters affecting tax filings, accounting treatment, or business structure. The Client authorizes Kaizen to rely on responses from the Client’s designated representative(s). Any response provided by those individuals will be considered binding on the Client.

STAFFING

Kaizen may deliver services through its employees, independent contractors, or a combination of both, at its discretion. To support service delivery, Kaizen may share information provided by the Client with select related entities and independent contractors. This authorization remains in effect for the duration of the Client relationship unless the Client revokes it in writing.

Kaizen may share information with the following related entities:

  • Kaizen CPAs + Advisors Private Limited, a wholly owned subsidiary of Kaizen CPAs PLLC located outside the United States
  • YPD HCM Inc., doing business as Your Payroll Department (YPD)
  • Kaizen Mgmt, Inc.

The Client must notify Kaizen in writing to limit or revoke this information-sharing authorization.

USE OF OUTSIDE CONSULTANTS/EXPERTS

If Kaizen determines that specialized expertise is necessary—such as support for tax, sales tax, or technical accounting matters—Kaizen may engage an outside consultant to assist with the work. Kaizen will consult with the Client and obtain written authorization before moving forward. The Client is responsible for all fees and expenses charged by the third party. If the Client does not authorize the engagement, Kaizen may discontinue any services that depend on that external support.

NON-SOLICITATION

During the term of the relationship and for two years after services conclude, the Client agrees not to solicit, hire, or contract with any Kaizen employee or subcontractor who was employed by or under contract with Kaizen during the service period. If the Client violates this restriction, the Client agrees to pay Kaizen a fee equal to the greater of: (1) the recruited individual’s total compensation for the prior six (6) months, or (2) $80,000.

ELECTRONIC/DIGITAL COMMUNICATION

Kaizen primarily communicates with the Client through a secure client portal. When necessary, Kaizen may also use email, text, fax, or postal mail. These communications may contain confidential or sensitive information.

Kaizen takes data security seriously and implements reasonable and appropriate measures to protect the confidentiality of Client information. These safeguards include secure file transmission, encryption, firewalls, user authentication, and other internal protocols designed to maintain data integrity and prevent unauthorized access.

While Kaizen makes every effort to secure communications in accordance with applicable laws and professional standards, electronic communication involves inherent risks. Once a message leaves Kaizen’s systems, it may fall outside Kaizen’s control. By receiving services, the Client acknowledges these risks and consents to the use of electronic communication throughout the engagement.

FEES

General Fees

Kaizen bills for selected services on a monthly basis and typically deducts fees via ACH on the 5th of each month.

Technology Stack

Kaizen offers wholesale pricing through several software partners. Kaizen provides these services at the lower of the standard retail price or the wholesale rate plus a small processing fee. Kaizen will adjust fees if vendors change their pricing.

Backwork

Kaizen defines backwork as the number of months in arrears required to bring financial records current. Kaizen calculates the fee by multiplying the monthly accounting rate by the number of months in arrears. The Client pays this total in four equal installments: one-quarter at signing and the remaining three-quarters over the following three months. Fees for selected technology solutions or advisory services are excluded from the backwork calculation.

Annual Tax Filing

Kaizen bills federal and state filings for the main business entity in four installments beginning in January. If the Client has additional entities, Kaizen will bill those separately based on complexity and will execute a separate Engagement Agreement outlining the related filings and fees. Kaizen also bills personal returns separately, with fees based on the number and complexity of filings, and issues invoices upon completion of returns.