Last Updated: 1/30/2023
This Engagement Letter (“Engagement Letter”) is made and entered into by and between Collective Hub, Inc. (“Collective”) and you (the “Client” or “you”) as of the date this Engagement Letter is executed or otherwise entered into by you in accordance with Collective’s terms (the “Effective Date”). This Engagement Letter is incorporated into the Terms of Service Agreement available at https://www.collective.com/terms-of-service (the “Agreement”). Capitalized terms used herein, but undefined will have the meaning given to such terms in the Agreement.
BY REGISTERING FOR, USING AND/OR RECEIVING THE BOOKKEEPING SERVICES, OR BY CLICKING THE “I ACCEPT” OR SIMILAR BUTTON, YOU AGREE TO THE TERMS OF THIS ENGAGEMENT LETTER.
1. Scope
Subject to the terms and conditions of the Agreement, Collective agrees to provide the following bookkeeping setup and services as part of your Collective subscription.
One-time:
(1) Bookkeeping and payroll setup, including Xero and Gusto Payroll registration for your business
(2) Creating a standard chart of accounts. (An additional charge will apply if you had business activity prior to subscribing to Collective’s services)
Ongoing:
(1) Year-round advice on your bookkeeping related questions
(2) Bookkeeping Services which include:
(i) Categorization of your business transactions
(ii) Reconciliation of your business’s bank and credit card accounts, as verified by your statements
(iii) Review of your financial reports
(iv) Delivery of reports package consisting of Profit & Loss, Balance Sheet, Cash Flow Statement, General Ledger, Accounts Receivable, and Accounts Payable detail (if applicable)
(v) Closing your books at the end of the year and getting them ready for tax preparation
2. Out of Scope
In no event will the Bookkeeping Services include, without limitation:
- Running payroll or changing salaries
- Issuing invoices to your customers
- Paying bills to your vendors
- Inventory tracking
- Time tracking for billing or invoicing
- Assistance with bookkeeping software other than Xero (or Quickbooks Online if recommended by your Onboarding Accountant.)
- Assistance with payroll software other than Gusto
- Gusto concierge services
- Issuing 1099’s and W-2’s for non-Gusto reported transactions
- Completing Form 1042 or advising on international contractor withholdings
- Management of vendor W-9s or international contractor W-8s
- Calculating or filing sales tax returns
- Companies with more than one W-2 employee initially or who hire more than five (5) W-2 employees (excluding the Member) after onboarding with Collective
3. Client Obligations
Do Not Commingle Funds
Client acknowledges that Collective’s performance of its obligations herein, and any advice or information provided by Collective in connection with the Bookkeeping Services is based upon the information provided and made available by Client. Client further acknowledges that in the event Client commingles its business accounts with its or its spouse’s personal accounts and expenses, that Collective cannot accurately perform the Bookkeeping Services. As such Client, agrees that it shall not commingle any business accounts or expenses with any of Client’s (or its spouse’s or other third party’s) accounts or expenses.
Cooperation and Access to Information
Client acknowledges and agrees that Collective’s performance hereunder is conditioned upon Client’s performance of its obligations herein and reasonable cooperation. Client agrees to provide Collective with any information and permissions reasonably requested by Collective in order to perform the Bookkeeping Services. Without limitation, Client will:
(i) provide Collective with monthly statements related to its bank accounts and credit cards. Collective acknowledges information is the confidential information of Client, and will use such information and/or access solely for the purpose of performing its obligations herein.
(ii) provide information on certain transactions. Since we are not part of the client’s day-to-day operations, we are not as familiar as they are with certain transactions. Your Accounting Advisor will reach out to you for additional information. We need your timely response to keep your books updated.
(iii) let us know changes in the Client’s finances such as opening a new business bank or credit card, taking out a business loan, or selling a business asset during the year; let us know if your health insurance premiums increased/decreased, your state unemployment insurance rates increased.
Without the requested information, the books won’t be accurate and complete. If we are unable to obtain the necessary information, this may delay the delivery of your monthly financial reports and/or your tax returns.
Review of Financial Reports
You are responsible for timely reviewing the General Ledger and the financial reports we issue monthly. If you have any questions on the transactions or disagree with the categorizations, you must promptly notify us to make corrections.
Accuracy of Information
You represent, warrant, and covenant to Collective that all information you provide to Collective or authorize Collective to obtain from your banks and other 3rd party software platforms that sync data into our Bookkeeping Services, is accurate, complete, current, and true, and that if you discover that any such information is inaccurate, incomplete, out-of-date or false, you will immediately notify Collective in writing and promptly correct such information. You acknowledge and agree that you shall be solely responsible for, and shall hold Collective, its affiliates and their respective officers, directors, employees, and contractors harmless from any costs, expenses (including reasonable attorneys’ fees), damages, judgments, liabilities, losses, penalties and settlements arising from or related to your breach of the foregoing representation and warranty. Collective shall not be responsible or liable to you or any other person or entity for any delays, penalties or other consequences arising from your breach of the foregoing representation and warranty.
4. Treatment of Personal Information
Collective will collect, store, process and disclose any information you provide in connection with this Engagement Letter in accordance with Collective’s privacy policy available at https://www.collective.com/privacy-policy.
5. Disclaimer
The Bookkeeping Services will be provided solely with respect to that business you have identified to Collective in connection with your Collective account. Collective will not perform an audit or review of your financials or any other related documents you may provide. All advice and information made available by Collective in connection with the Bookkeeping Services is based on the information you provide to Collective, and the Bookkeeping Services cannot be relied upon to discover errors, fraud, defalcations, or other irregularities, should any exist. We will not audit or otherwise verify the information you submit, although we may ask you for clarification of some of the information. Collective is not responsible for any information or advice given based on any inaccurate, untrue, incomplete or out-of-date information provided by you. You are solely responsible for your acts and omissions related to the Bookkeeping Services.
6. No Guaranteed Results or Responses.
Collective does not make any representation or warranty that the Bookkeeping Services will be appropriate for your needs or suitable for your business. Collective does not guarantee and expressly disclaims any particular results. SINCE THE BOOKKEEPING SERVICES ARE BASED ON THE INFORMATION YOU PROVIDE, Collective does not warrant that the BOOKKEEPING SERVICES will be timely, accurate, current, or complete. Collective makes no representation or warranty that such tools are secure or that our bookkeepers will be able to respond to you in a timely manner.
7. General
Client acknowledges and agrees that the Agreement https://www.collective.com/terms-of-service is incorporated herein by reference, and that the terms thereof shall apply to the performance of each party’s obligations herein, including, without limitation, the sections relating to Limitation of Liability, Indemnification and Arbitration.
