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VMG Bookkeeping Services Agreement

6 min read

These are the rules of the game #

VMG Bookkeeping Support Purpose

  • The continuous probing of all Accounting databases looking for red flags
  • Reduce inbound support requiring database changes
  • Communicating with and training frontline on how to resolve red flags
  • Empowering frontline by educating them on the mastery of VMG Accounting
  • Communicating with users on how to resolve red flags where the frontline team member is not able to do so
  • Keeping relevant role players informed on the health of their databases and support delivered
  • Offering documented advice to frontline and end users on “how to resolve” issues.
  • Keeping Automan updated with support provided.
  • Training users where needed
  • Traveling to clients when required
  • Generate training revenue
  • Helping with the onboarding of new Accounting clients
  • Being a senior support communication channel for, owners, accountants and bookkeepers using our Accounting software

VMG Bookkeeping Services

  • VMG Software is NOT a bookkeeping services company. We are a software development company that builds, maintains, installs, trains users, and supports the software that is licenced to its clients on a month-by-month basis.
  • It is assumed that any client who has been given access to the VMG Accounting module, has only done so through a rigorous application of the VMG Accounting Module take on rules.
  • Some customers need some bookkeeping help from time to time. To accommodate this, VMG has created a Bookkeeping Support team to complement our Frontline support objectives.
  • You are responsible for understanding our terms, processes, and responsibilities when offering VMG Bookkeeping services to any client.
  • The service is strictly available for the ongoing maintenance of a client’s books.
  • This is not a rescue service, and it is certainly not a charity.
    • Like our email hosting service, which is also not a core business to VMG, VMG bills R 495pm for email hosting where the client can get the same from Afrihost for as little as R18 pm.
    • It is not cheap to use this service. 
  • It is not a catch up, clean up or bring your books up to date service. We are not in the business of cleaning up other people’s messes. Especially when it comes to their financial management reporting. The risk exposure is too great.
  • Clients whose books are “in a mess” is a direct reflection of any of the VMG frontline team members who have had access to the client’s database.
    • It is an indication that the assigned team member/s did not conduct due diligence using quality health checks.
    • Clients who have not been processing their bookkeeping data incorrectly, should have been alerted and additional training agreed upon.
    • Clients and users who refused the training or displayed complete incompetence, should have had their VMG Accounting module removed, and an external bookkeeper should have been assigned
  • The service is intended exclusively for forward thinking customers who know that their current bookkeeper will be leaving and that they need a temp service to keep the books up to date while they look for a more permanent solution.
    • Once the new bookkeeper is found, the client pays for training again and the new team members takes over a clean set of up-to-date books that has been maintained by VMG.

Introduction and Purpose of the Agreement

  • A clear and concise MOU is crucial for setting clear expectations and ensuring a smooth working relationship with our clients.
  • This agreement formalizes the working relationship between VMG Services and our clients for bookkeeping services. It clearly defines the roles, responsibilities, and expectations of both parties. It must be adhered to.
  • The agreement’s main goal is to establish a mutual understanding of:
    • The specific bookkeeping objectives.
    • The associated costs.
    • The step-by-step processes involved.

Client Objectives and VMG’s Role

  • Clients typically engage VMG to:
    • Keep their bookkeeping records up to date
    • Prepare financial statements for financial institutions.
    • Ensure compliance with SARS (South African Revenue Service) regulations.
  • VMG’s primary role is to provide bookkeeping data capturing services to keep client financials up to date.

Requirements and Responsibilities

  • Clear roles and responsibilities are essential for any project’s success.
  • Clients must pass a rigorous DMS Pro health check. No exceptions can be made.
  • Clients are responsible for providing the most recent approved and signed financial statements. This serves as the starting point for our work.
    • If clients are unable to provide a signed set of financials then we must not go near the project but rather direct the client to a third party service that can bring the clients books up to date.
  • VMG will conduct a thorough review of the client’s financial records to accurately assess the scope of work and provide a detailed quote.
  • Work will only begin after the client has formally accepted the quote.
  • An initial deposit, as specified in the quote, must be paid before services commence.
  • Clients must provide requested information promptly. Delays can impact project timelines.
    • It is vital that your clients respond in a single business day to any VMG Bookkeeping queries.
    • We have many clients to care for and we need clients to be on top of their game for us. If they fail to do so, it is a deal breaker.
  • VMG is not responsible for inaccuracies resulting from client-provided data.
  • Clients must provide VMG with necessary access to their systems and banking information
  • Clients are responsible for engaging a chartered accountant for financial sign-off.
  • All bookkeeping processing will be conducted at VMG headquarters.
  • Communication will primarily be via email for queries and updates.
  • VMG will provide the client with a VAT detail and summary report each month
  • VMG will provide the client with an income statement each month
  • The Client is responsible for ALL of their SARS tax and other legislative submissions
  • The Client is responsible for the management of their own payroll.
    • VMG does NOT offer tax or payroll services.
  • Monthly meetings will be scheduled to discuss progress and address any concerns.
  • VMG bookkeeping staff are employees of VMG Software and their time is managed accordingly.
    • They are NOT the employee of the Client.

The Bookkeeping Process

  • Ensuring your client understands the process ensures consistent and accurate bookkeeping.
  • Explain the steps in detail, potentially using visuals or a flowchart. Focus on:
    • Data backup and security.
    • Importance of accurate opening balances.
    • Sequential monthly processing.
    • Year-end trial balance submission to the chartered accountant.
    • Adjusting journal entries after accountant sign-off.

Financial Terms and Payment

  • Understanding the payment terms is crucial for managing client accounts.
  • Our starting rate is R 6 500 per month.
    • This is generally significantly cheaper that the cost of a dedicated bookkeeping human resource.
  • These services will be billed by our VMG Services company and not by VMG Software.
  • Quotes will cover both the initial catch-up work (if absolutely required) and ongoing monthly bookkeeping services.
  • An initial invoice will be issued upon quote acceptance, payable via EFT. This payment confirms agreement to the terms.
  • Subsequent invoices are due within three working days.
  • VMG reserves the right to suspend services in case of non-payment.
  • Any third-party costs, such as accountant fees, are billed directly to the client.