Question

1. Prepare a proposal for the client. You are trying to obtain this company as a client. Make up the information about yourself.
2. Assume that you are an independent contractor. You own your own business. You offer the following services to the public:
   1. Tax return preparation
   2. Financial advising
   3. Bookkeeping services (QuickBooks)
3. You wish to offer your bookkeeping services to the company known as Lynn’s Music Studio. The company has a CPA firm prepare the tax return but they have a need for a bookkeeper as the CPA firm charges too much. The CPA firm recommended your firm since you have a reputation for reliability and reasonable fees. You can obtain information about this company on pages 6-65 to 6-71 in your textbook. (Case 6-1).
   1. Gather all necessary information from Lynn’s Music Studio in the textbook.
   2. Determine all requirements necessary for the client Lynn Music Studio. You are offering only bookkeeping services. If you offer tax services you may upset the CPA firm that does the tax return and they may never refer you again.
   3. Write a proposal to the company being sure to include the following items:
      1. Cover letter
         1. Be sure to clearly identify yourself
         2. Introduce yourself as a self-employed bookkeeper. List your credentials such as a certified bookkeeping professional, any certifications such as for Microsoft or QuickBooks and the like.
         3. Be sure to state how long you have been in practice.
         4. Be sure to quote a fee for your services.
      2. Description of the organization as you understand it. Ask the client to clarify the information you have.
      3. Describe your responsibilities and the services you are offering and the services you are not offering
         1. You are not preparing the tax return
         2. You are not doing an audit
         3. Bank reconciliation?
         4. Uncollectable accounts analysis?
         5. Other items you are offering or not offering
      4. Describe your client’s responsibilities
         1. Providing you with the information needed such as
            1. Checks written
            2. Sales invoices
            3. Other items you need
         2. Providing you a place to work in her office or providing you with the information so you can work in your office.
      5. A cost benefit analysis. The CPA firm is charging a certain amount (Make it up). Show how you can do the same work at a lower price.
   4. Write a thank you letter to the CPA firm for referring you to this client.

Answer 1

Part-i

Mr./Mrs. …….

CEO

Lynn’s Music Studio

Dear Sir/Ma’am

Myself Mr. John owned a self employed business in the name of John Consultancy providing services like bookkeeping. I’m a certified bookkeeping professional and holding certificate for Microsoft. I’m in 6^th year in practice of bookkeeping etc. services. I would like to quote a fee for bookkeeping service a sum of $5,000 a month which is reasonable and cheaper than some other consultancy firms.

I pride myself on offering my clients responsive, competent and excellent service. My clients are the most important part of my business, and I work tirelessly to ensure your complete satisfaction, now and for as long as you are a client.

Thank you again for entrusting John consultancy with your most important business needs. I am honored to serve you.

Sincerely

John

Proprietor

Part-ii

As I understand that the Lynn’s Music Studio is a production house of films and music and have business activities of producing films and music. As, I heard that you have a CPA firm for preparing the tax return but for bookkeeping you need some other firm. Please clarify that if you in need of a bookkeeper, than I will provide you bookkeeping service and any other service if you required. If you have already a CPA firm for tax return preparation than I will not provide you that service to maintain professional ethics as I heard that the CPA Firm you have referred me.

Part-iii

I would like to inform you about the services, I provide you and not provide you:

I would like to provide you-

       Bank Reconciliation

       Uncollectable accounts analysis

       Debtors and creditors age analysis

       Day by day accounts maintenance

I would not providing services like-

       Tax return preparation

       Audit

Part-iv

I would like to inform you that you have to provide following facilities and assistance to help me better serve you –

           Checks written

           Sales invoices

           Purchase bills

           Cash vouchers

           Bank statements, etc.

Apart from that we need a space in your office to provide you bookkeeping service or you have to provide me all necessary information, so I can work in my office.