SCOPE OF SERVICES for 2 companies

COMPANY C (trading arm, responsible for sales and marketing, purchasing raw materials and installation of cabinets)
COMPANY H (manufacturing arm, responsible for fabrication of cabinet modules)

1. ACCOUNTING

a. Bookkeeping and financial reporting

i. Record all transactions based on accounting documents (check vouchers and supplier
invoices, service invoices and official receipts and payroll reports, among others)
ii. Maintain and manage general ledger accounts such that details and schedules can be made
readily available when needed.
iii. Perform monthly closing routines (monthly bank reconciliation, GL and SL reconciliation,
accruals, amortizations, provisions, fixed asset register, etc.)
iv. Prepare monthly trial balance
v. Prepare quarterly income statement as basis for the preparation of the quarterly income tax
return for filing with the Bureau of Internal Revenue.
vi. Submit to management financial reports within the deadline set by management
following the close of a period (month). These financial reports include:
1. Balance Sheet
2. Profit and Loss Statement

b. Invoice preparation and Accounts Receivable

i. Prepare Service Invoice to company’s clients based on the fees and reimbursements to be
provided on a regular basis by the company’s Project Managers.
ii. Record invoices and generate SOA for sending to customers.
iii. Generate subsidiary ledgers (SL) for customers
iv. Generate ageing schedule.

c. Accounts payable

i. Record vendor’s invoices based on documents provided by the Company;

ii. Apply the applicable withholding tax based on the documents presented.
iii. Prepare withholding tax certificate to be given to each payee together with the payment.
iv. Process check payments based on approved documents
v. Maintain Subsidiary Ledgers for suppliers/vendors;

2. TAX REPORTING

a. Monthly and Quarterly Statutory Filings

i. Assist in the preparation, filing and/or payment of:

MONTHLY
1. Payment of monthly taxes withheld on payments subject to expanded and final withholding
taxes.
2. Monthly VAT returns (BIR Form 2550M).

QUARTERLY
3. Quarterly taxes withheld on payments subject to expanded withholding taxes
(BIR Form 1601-EQ).
4. Quarterly taxes withheld on payments subject to final withholding taxes (BIR Form 1601-FQ).
 5. Quarterly Alphalist of Payees (QAP) whose income received has been subjected
to withholding tax including e-submission thereof.
6. Quarterly VAT returns (BIR Form 2550Q), and an entry using BIR’s VAT Relief System including e-
submission thereof.
7. Quarterly income tax returns (BIR Form 1702Q) with supporting documents
8. Summary Alphalist of Withholding Agents of Income Payments Subjected to Tax
Withheld at Source (SAWT) including e-submission thereof.
9. Quarterly Fringe Benefit Tax (BIR form 1603) plus supporting computations, if applicable.

ii. Assist in the issuance of certificates of creditable tax withheld to all applicable suppliers on a
regular basis (BIR form 2307).

b. Annual Tax Returns

i. Assist in the preparation of the Annual Information return for Withholding Tax
Expanded (BIR Form 1604E) including supporting schedules and e-submission.
ii. Assist in the preparation of the Annual Income Tax Returns (BIR Form 1702). The
annual tax return is normally included in the scope of services of the external auditor. Accordingly,
our work involves the preparation of the necessary schedules and information requested for the
purpose of preparing the annual income tax return.

c. Routine tax advice

i. Provide advice on routine tax matters. However, tax matters requiring research and
additional work will be covered by a separate agreement

3. YEAR-END

a. Actual Billing Prepare, analyze and collate data or information on various financial accounts
as may be required by the auditors to expedite their work and assist in resolving questions that may arise as
a consequence of the audit.
b. Prepare detailed schedules for attachment to reports to be submitted to government
agencies such as the SEC and BIR.