Terms of Service

Kaizen CPAs + Advisors will maintain confidentiality of all client’s records. Financial statements created are the official set of books.

Either party may terminate this agreement upon 30 days written, emailed, or verbal notice. Monthly fee payments for all services will cease within 30 days of notice and all client data will be released as directed by client.

Each year Kaizen CPAs + Advisors will send client a fee review notice which will serve as our re-engagement letter under the same terms as this original agreement, but different fees.

Definition of Services

Outsourced Accounting – Within the three levels of service: Essential, Plus and Premier, there are four categories that define services provided.

Technology Stack – To better assist day-to-day accounting and communication between Kaizen CPAs + Advisors and their clients, accounting software to be used will be either QuickBooks Online (QBO) or QuickBooks Desktop (QBD). If QBD is utilized, it must be supported by Intuit and hosted in the cloud via a sanctioned web hosting software. Payroll service is defined as full service so that tax payments, quarterly filings, W-2s, etc. are processed by the same system and vendor. Kaizen CPAs + Advisors offers full service payroll through its sister company, Your Payroll Department (YPD). Receipt management and bill pay services are available and provided through approved third party vendors.

Accounting – Services include: general ledger entries, bank reconciliation(s), fixed asset schedules, loan amortization schedules, vendor 1099s, filing state & local sales tax. Also includes bookkeeper availability for directing or responding to inquiries regarding transaction coding and/or general bookkeeping assistance.

Management Reporting – Comprised of a statement of assets, liabilities, and equity and the related statement of revenues, expenses and retained earnings. These are commonly referred to as: balance sheet, income statement, two & four-year comparative P/L, monthly comparative balance sheet, year-end close of books and annual report. Frequency of reporting is based on the level of service selected. Also includes Account Manager availability for directing or responding to general inquiries throughout the month.

Advisory – Includes preparing and filing applicable state and federal tax returns. Within advisory services the option to enroll in our Audit Protection Program is outlined below. The frequency of formal discussions with your Account Manager is based on the level of service selected; Essential, Plus or Premier. Topics can include financial statement review, tax planning, addressing business environment/changes, etc.

Specialty Services – Specific projects requiring additional research, work and deliverables and may be within QuickBooks or separate. This can include among other things: cash management/flow projections, budgeting, forecasting, buy/sell agreements, business valuations, loan applications, entity structure, planning & set-up and aiding in the purchase of, planning for the purchase of, or sale of, a business.

Consulting Plus Tax – This service is provided for clients that require no monthly accounting work where clients accounting software will be used for analysis and filing returns. Clients accounting software must be adequately maintained and will be validated prior to offering this service. Consulting will be provided on a quarterly basis and can include among other things: financial statement review, tax planning, addressing business environment/changes, etc.

Fees

Backwork – Defined as the number of months in arrears that needs to be worked to bring the financial records current. The monthly accounting fee times the number of months in arrears will be paid, 1/4 at signing, 1/4 for the subsequent 3 months. Fees associated with chosen technology solutions or advisory services are excluded from calculating backwork.

General Fees – Kaizen CPAs + Advisors will process billing for selected services on a monthly basis. Technology Stack - Kaizen CPAs + Advisors is able to provide wholesale pricing for a number of our software partners and is always reviewing to ensure the best provider at the lowest cost. Kaizen CPAs + Advisors provides the services at the lower of retail pricing or our wholesale pricing with a small processing fee. These fees are subject to change based on the pricing offered by our vendors.

Annual Tax Filing – Federal and state filing for the main business entity is paid in four installments beginning in January. If there are additional entities they will be billed separately based on complexity. A separate Engagement Agreement will be executed outlining these filings and associated cost. Personal returns are also billed separately based on the number of filings and complexity.

Consulting Plus Tax – Quarterly consulting fee will be billed on a monthly basis. Year-end tax filing will be billed and due upon Kaizen CPAs + Advisors completing applicable tax filings. 

While Kaizen CPAs + Advisors is knowledgeable about state sales tax issues, clients are encouraged to have a sales tax specialist review sales tax obligations. That work is outside the scope of this Agreement. Kaizen CPAs + Advisors does not review or ensure client is charging the correct sales tax.

Audit Protection covers tax-related work completed after agreeing to this service. It is assumed client agrees to this valuable service which covers our time if client is audited for income tax, state sales & use tax and worker classification audits. If client opts out of Audit Protection, client will be billed at a rate of $225/hour or the then applicable rate. 

Technology support is offered through our Plus and Premier product packages. Our certified QB experts will train, “clean up," and provide general QB assistance. Additionally, any software used to enable a hosted QB platform as well as receipt management and bill payment is supported by our staff.

The client authorizes Kaizen CPAs to share with select related entities any and all information furnished to us under this agreement. This authorization remains in force until this agreement is terminated. This authorization includes Kaizen Tax Services Private Limited which is a subsidiary of Kaizen CPAs PLLC and is located outside the United States. If the client wishes to limit or refuse Kaizen CPAs to share information with its affiliates, the client must inform us. The select related entities besides that highlighted above are: YPD HCM Inc (Your Payroll Department), and Kaizen Mgmt, Inc.