5F Ricogen Building

112 Aguirre Street

Legaspi Village, Makati
City,
Metro Manila,
Philippines

TOP BUSINESS AND IT SOLUTIONS

Telephone +63 (2) 659

4170
Facsimile +63 (2) 817
4074

1 September 2016
Dr. Marco F. Abad
Chief Financial Officer
Global Vascular Surgery, Inc.
37th F 6801 Ayala Avenue, Makati City
Subject: Proposal for Outsourced Accounting Services

We are pleased to submit herewith a proposal letter to provide bookkeeping

services. This proposal letter covers engagement scope of work, timeframe,
responsibilities and limitations, and professional fees based on our understanding
of your requirements.
Scope of Work:
Service Description & Deliverables
GENERAL ACCOUNTING

Due

1. BOOKKEEPING
We will gather your business
documents to be recorded. These
business documents include, but not
limited, to the following:
a) Invoices
b) Receipts
c) Payslips
d) Bank statements
e) Vouchers
f) Payroll Registers
g) Billing statements
h) Purchase orders
After gathering your documents,
sorting,
filing,
recording
and
reconciliations will be done. We record
all your submitted business documents
up to the last centavos. We ensure that
all important details are accounted for
such as the name, date, amount,
description and reference number.
2. MONTHLY
REPORTING

To be accomplished
FINANCIAL at least 3 days
prior to deadline

These financial reports are, but not

limited to the following:

Fee Structure
Monthly
Retainers Fee:
PhP 15,000.00
Discount
(5,000.00)

Net Fee
PhP10,000

a) Trial Balance
b) Comparative Balance Sheets
(Yearly)
c) Comparative Income Statements
(Monthly and Yearly)
d) Monthly Sales and Expense
Trends
e) Copy of filed government reports
3. TAX COMPLIANCE &
MANAGEMENT

Every 10th of the

month
To be accomplished
at least 5 days
prior to deadline

BIR Deadlines:
1. 1601-E/C within
10 days after the
end of the
a. Monthly Withholding Tax Return on
month;
Income payments (1601-E)
b. Monthly Withholding Tax Return on 2. 2550M - within
20 days after the
compensation (1601-C)
end of the
c. Monthly/Quarterly VAT Returns with
month;
VAT Relief (2550M/Q)
d. Quarterly Income Tax Returns (1702- 3. 2550Q - within
Q)
25 days after the
e. Certificate of Creditable Tax Withheld
end of the
At Source (2307)
quarter;
4. 1702-Q within
60 days after the
end of the
quarter;
5. 2307 within 10
days after the
end of the month
Deliverables by the Company:
1. To submit transactional records
every week (Thursday of the
week).
Monthly computation and preparation of
the following BIR tax returns:

The foregoing service engagement considers the following assumptions:

1. That the amount of above engagement fee is exclusive of Value Added
Tax (VAT);
2. The monthly retainer fee is payable within the first week of each month and
subject to ten percent (10%) annual escalation fee.
3. Then client agrees to appoint one key personnel to whom we shall direct
queries and coordinate our requirements to enable us to perform our
services.
4. All services, outside the scope of work enumerated herein or beyond the
number of hours agreed, that you will require us to do shall be billed
separately. The said services shall be agreed with you before
commencement. This shall be computed at hourly rates of the persons
performing the services rendered. The rate are as follows:
Designation
Partner

Rate / Hour
PhP4,000.00
(2)

Supervisor
Associate

PhP1,500.00
PhP1,000.00

5. In addition, we will bill you out-of-pocket expenses (OPEs) that will be

incurred during the engagement. These will include cost of long distance
travel, hotel accommodation to be incurred in the performance of our
services, local transportation, materials and supplies, computer time,
reproduction of draft and final reports, and other incidental expenses
incurred in relation to this engagement.
6. Upon termination of the contract, we have an exit fee of PhP10,000 that will
cover the turnover of all accounting files, and assist the succeeding
accountant to ensure a smooth transition for a period of one month.
Steps written in the Scope of Work are suggested but are subject to agreement of
management before we actually perform them.
We will also make ourselves available to handle corporate and other accounting
matters that you may refer to us. We shall also be willing to provide you with your
required technical assistance in pursuing and/or negotiating any major transaction
or special business project of interest to you, both here and abroad. We may also
perform research, i.e. feasibility studies, and render opinion as you may request.
However, the foregoing cases and other accounting matters that is not covered by
the scope of work shall all be classified as Special Projects and will be covered by a
separate agreement as regards professional fees and other costs

(3)

Time Frame
The engagement for the said engagement shall effect immediately after your
conformity hereto and shall continue unless terminated by either parties
thirty days after written notice.
Responsibilities and Limitations
All procedures, as enumerated in the Scope of Work of this engagement proposal,
shall be rendered in good faith by competent/highly skilled professionals and in
accordance with the engagement parameters specified herein.
The Company shall be responsible for making available, upon request, all records
and information necessary to undertake the agreed services. Accordingly, the
Company will also appoint a key person to whom we can direct managementrelated inquiries and other concerns during the engagement.
To the extent permitted by law, TOP Business and IT Solutions, Inc. excludes all
warranties, conditions or terms, other than those expressly set out in the terms
and conditions herein provided, including, but not limited to, all warranties,
conditions or terms implied in fact or by law. This shall not prejudice any nonexcludable statutory condition, warranty, guarantee, right, remedy or other benefit
acquired by the Company.
Termination
This engagement shall be terminated effectively on a thirty (30) days advance
written notice after the full payment of all monetary obligations. It is hereby
understood that the monthly retainer fee is subject to periodic review and
adjustment upon mutual agreement.
Confidentiality
Any of the companys personal data provided to us will be treated as confidential
and will only be used for the purpose of this engagement. It is hereby agreed
that we will not disclose any confidential information we obtain in dealing
with the companys affairs to any other person without their permission
except as required by the applicable law, rules or regulations, Court
proceedings, professional duty or professional indemnity insurance
arrangement.
Confirmation
If the services outlined herein are in accordance with your requirements and if the
terms and conditions of the engagement are acceptable to you, please have one
copy of this letter signed in the space provided below and return this to us. Should
you have any inquiries for the purpose of finalizing the agreement, please contact
us at telephone number (632) 659 4170.
Very truly yours,

(4)

JOEL POH
General Manager

The terms of this engagement are accepted by ____________________on behalf of the

Company who represents that he/she is authorized to accept these terms on
behalf of the Company.
GLOBAL VASCULAR SURGERY, INC.
By:
______________________________
(Authorized Representative)
______________________________
(Position/Official Designation)
______________________________

(5)