Below are all the resources you'll need to create a quick ITR engagement and ensure you do not work out of scope. These have been handcrafted by a qualified accountant and reviewed by a practicing accountant!

Summary

Step 1. Setting up engagement letter

Step 2. Setting up ITR service and service terms 

If you would like us to set these up in your account please click here:

 Please import these into my account

Please note you are accepting responsibility (and any associated risks) for using these templates in your account. We strongly recommend you double check with your professional association or indemnity insurance provider prior to engaging your clients with these templates.

Step 1. Setting up engagement letter

Navigate to the Templates library and start a new template.

Paste in the the template below which has been pre-formatted with relevant placeholders so you can just copy and paste into a new template.

Please feel free to change the content of this engagement letter if you prefer different wording or your business has different requirements. 

Confirmation of agreement for services between: *{{ practice.name }}* and *{{ client.name }}*

This is to confirm our understanding of the terms and objectives of our engagement and the nature and limitations of the services we will provide.

h3. Purpose, Scope and Output of the Engagement

{{ practice.name }} will provide professional services at your request. These services will be conducted in accordance with the Code of Professional Conduct issued by the Tax Practitioners Board of Australia. The extent of our procedures and services will be limited exclusively to the services listed below. As a result, no audit or review will be performed and, accordingly, no assurance will be expressed. Our engagement cannot be relied upon to disclose irregularities including fraud, other illegal acts and errors that may exist. However, we will inform you of any such matters that come to our attention.

{{ proposal.service_summary }}

{{ proposal.price_summary }}

h3. Period of Engagement

This engagement starts on {{ proposal.commencement_date }} and is valid until {{ proposal.end_date }}. We will not deal with earlier periods unless you specifically ask us to do so and we agree.

h3. Why do we offer fixed prices?

Billing in professional services has traditionally been based on an hourly rate. {{ practice.name }} believes that clients are better served through fixed prices. Hourly billing also creates a conflict of interest because it means that Accountants are directly rewarded for inefficiency. The longer taken to do the job the higher the price. Hourly billing does not create an environment that is conducive to customer service or an incentive to complete jobs quickly.

Additionally with hourly billing you have no certainty how much the job will be until the bill is received. To better plan your cashflow it is better for you to know in advance how much the job will cost and what it entails.

* You will always know in advance how much you will pay for services, and will always have the opportunity to discuss the agreement before we get started on any work. If new work is required outside of the scope of the agreement we will issue a supplementary or replacement proposal for you to accept (or discuss) before we start the extra work.

* It places the risk back on us, the service provider. You don’t have to worry about being billed for more hours than you thought it would take. We have to focus on being more efficient to ensure our relationship is mutually profitable. This means we can leverage best of breed technology to constantly improve the quality of the service we deliver.

* It opens the lines of communication. You can contact us with questions without receiving a bill for our time. All of our fixed price agreements include reasonable support. Regular unencumbered communication between {{ client.name }} and {{ practice.name }} helps us to serve you best.

h3. Hourly Billing for Services with an Undefined Scope

{{ practice.name }} will normally provide a fixed price agreement, particularly where services are ongoing. However there are some services where an estimate based on an hourly rate is the only method of billing that can sensibly apply. We’ll quote an hourly rate for project work where it is difficult to define the scope of the service required.

Where possible, {{ practice.name }} will eventually seek to convert any hourly services into a fixed price agreement, if or when, the scope of the service becomes more apparent.

h3. Unanticipated Services

While your fixed price agreement entitles you to unlimited communication, if your question or issue requires work beyond the services agreed, any additional work will be quoted to you before its commencement. Once the scope of the additional work is agreed upon, we will issue an edited proposal or a new proposal for the additional service.

Furthermore, {{ client.name }} agrees that if an unanticipated need arises (such as an ATO audit or extended Enquiry, the need to amend a tax return or similar unanticipated need), this additional work will be performed only after arriving at a mutually agreed-upon price. We will issue an edited proposal or a new proposal for the additional service.

h3. Service and Price Guarantee

{{ practice.name }} strive to surpass client expectations. If at any point you are not completely satisfied with the services we have performed, we ask you to bring this to our attention. An opportunity to address your concerns and prevent similar problems from happening in the future is important to us.

h3. Ownership of Documents

All original documents obtained from the client arising from the engagement shall remain the property of the client. However, we reserve the right to make a reasonable number of copies of the original documents for our records.

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h2. Additional Service Terms

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h3. Client Responsibilities

In conducting this engagement, information acquired by us in the course of the engagement is subject to strict confidentiality requirements. That information will not be disclosed by us to other parties except as required or allowed for by law, or with your express written consent.

The Client is responsible for the reliability, accuracy and completeness of the accounting records, particulars and information provided and disclosure of all material and relevant information. Clients are required to arrange for reasonable access by us to relevant individuals and documents, and shall be responsible for both the completeness and accuracy of the information supplied to us. Any advice given to the Client is only an opinion based on our knowledge of the Client's particular circumstances.

In conducting this engagement, information acquired by us in the course of the engagement, including any information relating to your affairs whether it belongs to you or not or is provided by you or not, is subject to strict confidentiality requirements. That information will not be disclosed by us to other parties except as required by law, or with your express consent.

We may collect Personal Information about you, your representatives, your clients and others when we provide services to you. If we do, you agree to work with us to ensure that we both meet the obligations that we each may have under the Privacy Act 1988 (Cth) (as amended) (Privacy Act). The obligations may include notifying the relevant person to whom the personal information relates who we are and how we propose to use their personal information. Where you have collected personal information, you confirm that you have collected the personal information in accordance with the Privacy Act, that you are entitled to provide this personal information to us and that we may use and disclose the personal information for the purpose/s we provide our services to you. We will handle personal information in accordance with the Privacy Act.

You are ultimately responsible for the reliability, accuracy and completeness of your accounting records, particulars and information provided and disclosure of all material and relevant information. You are required to arrange for reasonable access by us to relevant documents, and shall be responsible for both the completeness and accuracy of the information supplied to us. Any advice given to you is only an opinion based on our knowledge of your particular circumstances. If you feel that we have misunderstood your circumstances you must let us know as soon as possible to ensure we do not provide incorrect advice in error. You have obligations under self assessment to keep full and proper records in order to facilitate the preparation of accurate returns. It is your responsibility to keep those records for five (5) years.

A taxpayer is responsible under self assessment to keep full and proper records in order to facilitate the preparation of a correct return. Whilst the Commissioner of Taxation will accept claims made by a taxpayer in an income tax return and issue a notice of assessment, usually without adjustment, the return may be subject to later review. Under the taxation law such a review may take place within a period of up to four (4) years after tax becomes due and payable under the assessment. Furthermore, where there is fraud or evasion there is no time limit on amending the assessment. Accordingly, you should check the return before it is signed to ensure that the information in the return is accurate.

Where the application of a taxation law to your particular circumstances is uncertain you also have the right to request a private ruling which will set out the Commissioner’s opinion about the way a taxation law applies, or would apply, to you in those circumstances. You must provide a description of all of the facts (with supporting documentation) that are relevant to your scheme or circumstances in your private ruling application. If there is any material difference between the facts set out in the ruling and what you actually do the private ruling is ineffective.

If you rely on a private ruling you have received, the Commissioner must administer the law in the way set out in the ruling, unless it is found to be incorrect and applying the law correctly would lead to a better outcome for you. Where you disagree with the decision in the private ruling you can lodge an objection against the ruling if it relates to income tax, fuel tax credit or fringe benefits tax. Your time limits in lodging an objection will depend on whether you are issued an assessment for the matter (or period) covered by the private ruling.

h3. Storage of Personal Information

By signing this proposal you acknowledge and agree that your personal information may be stored in servers overseas, and that some of the work we perform for you may be handled overseas. From time to time we do seek the assistance of our software providers to resolve errors caused by our software. If this occurs the standards of privacy afforded by our software providers matches our obligations to you. Your data is secured by best practice security standards.

Our engagement will result in the production of taxation documents. Ownership of these documents will vest in you. All other documents produced by us in respect of this engagement will remain the property of the firm, subject to any statutory obligations.

The firm has a legal right of lien over any client documents in our possession in the event of a dispute.

h3. Australian Tax Office (ATO) Authorisation

By signing this proposal you agree to authorise us to add you to our ATO Tax Agent Portal (Online Services for Agents), using your Tax File Number (TFN) and date of birth as the unique identifiers.

Please contact us via the comments box below if you have any queries or concerns about this proposal.

h2. Confirmation of Terms

Please review and digitally sign this letter below to indicate that it is in accordance with your understanding of the arrangements. This letter will be effective for future years unless either advises the other.

Signature: {{ signature.client }}
{{ contact.name }}
{{ client.name }}

{{ practice.name }}
{{ proposal.accept_link }}

Step 2. Setting up a declaration service

Navigate to the Services library and start a new template.

Paste in the pre-created information below

Please feel free to change the wording if your business provides different services

Name of Service

Personal Income Tax Return (PITR - Australia): 
Taxation services - Individual Tax Return for
Individuals,
Sole Traders
Directors
Partners

Service Description

Preparation of your Income Tax Return for the year ended 30 June. This includes:

Preparation of Income Tax Return & associated schedules (see Service Terms), including;
* Centrelink/DVA (Veterans) income streams
* All interest earned for the year as notified to the ATO by third parties
* Zone Offsets
* Medicare Disclosures

* Electronic lodgement of Income Tax Return with ATO
* Review of Notice of Assessment to ensure correct tax calculation

Now to ensure you don't work out of scope and that you don't need to add this as a special note each time into your engagement letter you have the ability to add in extra scope to the service. Click on the 'Terms' tab 

Below you will find specific terms our accountant friends have created and use in their practice!

Service Terms

"Associated Schedules" is limited to the following (additional work will incur additional fees):
* Up to five PAYG Summaries
* Up to five ETP and Superannuation PAYG Summaries
* Up to five items of work related expenses

The following schedules will also be charged additionally if required:
* Capital Gains Tax (including computations of gains/losses for capital disposals that have no current year tax impact)
* Investment Schedules (Trusts, Rentals, Managed Funds, etc)
* Primary Production Income
* Overseas Income
* Business Schedules
* Motor Expense Claims (including comparison of cents/km and log book methods)
* Offsets (Net Medical Offset, Spousal Offset)
* FHSS Scheme (First Home Super Saver) Reporting, including early release income, tax offsets and impact on HECS

Price quoted dependent upon a reasonable expectation of
(i) information being supplied in a complete state, and
(ii) any queries responded to without undue delay"

This will embed itself into your engagement letter appropriately if you have not changed the wording from the above engagement template provided.

After you've saved this service you can now create a new proposal to engage your client!

Additional Tips

Keep in mind that when building the proposal that you can change the billing type to be "On Acceptance" or "On Completion" will allow you to eliminate any bad debts.

On Completion will also allow you to collect a deposit then bill the remaining amount before you lodge the return for the client.

If you have lots of clients you'd like to engage, follow our bulk creation guide and you'll have signed engagements from all your clients in a jiffy!

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