Hero picture

Accounting Services Terms

Welcome to Credo-Expert, your partner in financial excellence. Trust in our expertise, reliability, and dedication to your success. Let's navigate financial complexities together.

Terms

General Terms and Conditions of the Agreement "Provision of Accounting, Tax, and Personnel Accounting Services"

Approved and effective from the second of March 2020. Amendments made: August 01, 2020.

This text constitutes Part I of the Agreement "Provision of Accounting, Tax, and Personnel Accounting Services" (hereinafter referred to as the Agreement or this Agreement). The Parties to the Agreement are the Contractor and the Customer. Collectively referred to as the Parties.

I.1. Subject Matter of the Agreement

The Contractor provides services to the Customer in the field of accounting, tax, and personnel accounting (hereinafter referred to as the Services) in accordance with the Tariff Plan agreed upon by the Parties, and the Customer, in turn, pays for these Services based on the subscription fee of the applicable Tariff Plan.

The Contractor is the Customer's counterparty and assists them in organizing and maintaining accounting, tax, and personnel accounting in accordance with the terms and conditions of this Agreement. The Customer ensures timely submission of documents and/or information, which are the initial data for the provision of Services by the Contractor.

The specific list and/or scope of Services are established in Part II of this Agreement (hereinafter referred to as the Individual Terms) and the Tariff Plan applied by the Customer.

Within the framework of the rules and conditions of this Agreement, the Parties may seek additional cooperation, i.e., the Parties may agree to provide additional services in the field of accounting, tax, and personnel accounting by the Contractor to the Customer for an additional fee. Additional services in the field of accounting, tax, and personnel accounting are services within the scope of the Contractor's activities but not included in the Customer's service tariff plan.

When providing services in accordance with this Agreement, the Contractor may involve third parties and/or use services, software products, etc., of third parties.

I.2. Timelines and Procedure for Providing Services

I.2.1. When preparing its own schedule for providing Services, the Contractor always takes into account the deadlines established by the legislation for the preparation of documents and/or reports for the Customer. The Contractor allocates time for providing Services on weekdays from 9:00 a.m. to 4:00 p.m. Moscow time. Since the legally established deadlines are mandatory for the Customer, the Parties to this Agreement establish a schedule for document circulation and communication. The Customer's failure to comply with this schedule expresses their full understanding and unconditional agreement that the entire responsibility for disrupting the Contractor's work schedule due to the fault of the Customer lies solely with the Customer. Thus, the Customer unconditionally agrees that they may incur penalty sanctions for this reason, as well as penalties imposed by fiscal authorities, and in certain cases, penalties from counterparties, as well as other losses.

I.2.2. In cases where the Customer fails to provide documents and/or information to the Contractor within the deadlines established by the document circulation schedule, the Contractor:

  • Does not take any actions to demand documents and/or information from the Customer;
  • Carries out necessary calculations and/or prepares necessary reports based on available information and documents;
  • Does not prepare any reports and/or documents if there is a lack of information or documents required for their preparation;
  • Does not conduct or provide the Customer with an analysis of financial results for periods, as such analysis would not be practically beneficial.

I.2.3. In cases where the Customer provides documents and/or information after the deadlines established by the document circulation schedule, the Contractor:

  • Makes necessary adjustments and corrections to the accounting data and reporting in accordance with the requirements of Russian legislation. Some of this work by the Contractor may require additional payment from the Customer;
  • Schedules the processing of relevant information and documents only during available free time without considering the legally established deadlines for the preparation and submission of reports and documents;
  • Does not conduct or provide the Customer with an analysis of financial results for periods, as such analysis would not be practically beneficial.

I.2.4. In cases where the Customer provides documents and/or information within the deadlines established by the document circulation schedule, the Contractor:

  • Ensures processing of documents and/or information in accordance with its schedule for providing Services;
  • Provides the Customer with documents and/or information from its side within the usual deadlines established by the document circulation schedule;
  • Ensures the Customer's ability to receive necessary information from the accounting database about the results of its activities in a reasonable timeframe;
  • Conducts and provides the Customer with an analysis of financial results for periods.

I.2.5. The Contractor provides Services included in the subscription service within the volumes established by the applicable Tariff Plan upon timely payment of the subscription fee by the Customer. Non-payment or late payment of the subscription fee by the Customer is sufficient grounds for the Contractor to suspend the provision of Services and to change the schedule for providing Services; in such cases, the Contractor resumes the provision of Services only after the Customer settles outstanding payments for subscription services and does not consider legally established deadlines for the preparation of any documents and/or reports. Thus, the Customer expresses their full understanding and unconditional agreement that the untimely payment for Contractor's Services may lead to additional financial expenses in various areas. The Contractor provides additional services at mutually agreed-upon terms only if the Customer pays for these services within the deadlines established by the Parties.

I.2.6. The Contractor organizes the provision of Services (and provides these Services) using licensed software based on 1C Enterprise (the Customer's databases are stored on the servers of "1C cloud services"). The Parties may agree on transferring existing Customer databases or providing access to the Contractor, subject to the availability and/or organization of technical capabilities. The Parties may also agree to use another software product at the Customer's request. This is described in the Individual Terms. If conditions arise that require the involvement of third parties, the Customer pays for their services separately and additionally. In cases where the Contractor starts forming a new accounting database for the Customer, the latter provides initial balances for each account with subaccounts and analytics as of the date of forming the new accounting database. Specific dates, documents, and information are agreed upon by the Parties and reflected in the Individual Terms. If there is a need to restore the Customer's accounts for a certain period, these conditions are agreed upon by the Parties and reflected in the Individual Terms, additional agreements, or as additional services. Additionally, Individual Terms may include provisions for the preparation of various corrective reports.

I.2.7. The Contractor provides Services by applying the provisions of the Customer's Accounting Policy. The Parties may agree to make changes/additions to the Customer's Accounting Policy, and the Contractor, if necessary, may prepare such changes/additions. Upon the Customer's request, the Contractor may prepare an Accounting Policy for the Customer if the latter does not have one.

I.2.8. The Contractor provides services to the Customer in accordance with the terms of this Agreement, distinguishing between types of consultations:

  • Consultations in oral form, which are consultations on current financial and economic activities. These include consultations on current issues that do not require economic calculations to reflect the results of the Customer's activities, are theoretical for reflecting current operations, and help ensure the correct reflection of completed facts of economic life in accounting. Such consultations are a common practice and almost always do not require payment in addition to the applicable Tariff Plan.
  • Consultations in oral or written form, which require any economic calculations, implementation of accounting peculiarities in financial and economic activities at the Customer's request, etc. Such consultations may not be included in the subscription service Tariff Plan and will be subject to separate and additional payment based on individual agreement.

I.2.9. During the provision of Services, the Contractor may offer the Customer possible options for developing and implementing new accounting methods for optimization.

I.2.10. When providing services in the field of personnel accounting and salary calculation, the Contractor uses the Customer's existing Internal Labor Regulations, Remuneration Regulations, Collective Agreement, etc. All these documents may be absent for the Customer if it belongs to small business entities, namely microenterprises, and concludes employment contracts with employees based on a standard form approved by the Resolution of the Government of the Russian Federation dated 27.08.2016 No. 858 "On the standard form of an employment contract concluded between an employee and an employer - a small business entity that belongs to microenterprises" (Art. 309.2 of the Labor Code of the Russian Federation). If the Customer does not have any of the listed documents, the Contractor may prepare the necessary documents only upon receiving a written request from the Customer and receiving 100% prepayment. The Contractor is not responsible for the absence of local regulatory acts containing labor law norms for the Customer.

I.2.11. The Contractor organizes the Customer's access to its database via the internet when the Customer's database is hosted on "1C cloud services" servers. Thus, the Customer has round-the-clock access to the results of Services provided by the Contractor if they have access to a computer and the internet. These results directly depend on the quality and timeliness of document and/or information transmission from the Customer to the Contractor. Also, the Customer should understand that in cases of self-preparation of documents by the Customer in the accounting database, the quality and timeliness of such actions will directly affect the results of the Contractor's work.

I.2.12. The Contractor does not prepare service delivery reports for Services provided based on the list and volume of services included in the Tariff Plan applied by the Customer. The Contractor invoices the Customer monthly for payment in accordance with the Tariff Plan applied by the Customer. Other invoice terms may apply when the Tariff Plan establishes quarterly or annual subscription payments.

I.2.13. The Contractor invoices for payment before providing additional services to the Customer. After providing such additional services in the field of accounting, tax, and personnel accounting, which are not included in the Tariff Plan applied by the Customer, the Contractor prepares informational letters about the provision of these services to the Customer.

I.2.14. For online meetings (negotiations), the Parties may use: WhatsApp, Viber, Skype, Duo, Zoom. For negotiations without video communication, mobile communication, WhatsApp, Viber are used. For messaging, WhatsApp, Viber, Telegram, email are used. Optimal methods are agreed upon and may change over time due to obsolescence or the emergence of new software products.

I.2.15. The Customer's database contains a large amount of various useful information that the Customer can use beneficially in implementing the management process. If necessary, the Contractor trains the Customer in using the database to meet the Customer's basic management needs. The conditions and procedure are always individual and agreed upon by the Parties.

I.2.16. The Customer provides the Contractor with a list of its employees with contact details with whom the Contractor will interact when providing the Services. The Contractor appoints a responsible person from among its employees for organizing work with the Customer at the time of signing this Agreement, which is reflected in the Individual Terms.

I.3. Procedure and Schedule of Document Flow. Information Interaction Between the Parties

I.3.1. All files exchanged between the Parties must be named according to their content and be 100% readable. Each file must represent a separate document. Each separate file should not represent only a part of a document. Each separate file should not represent a group of any documents. The Parties use the following file formats for exchange: JPG, JPEG, PDF, PNG, TXT, RTF, DOCX, XLSX. This list is not exhaustive, and the Parties may agree to use files in other formats.

I.3.2. When preparing and approving this Agreement, the Customer provides the Contractor with the following documents:

  • Charter,
  • Organization details (card),
  • Current list of participants if there is more than one participant,
  • Protocol on the appointment of the head, except when the sole participant and the head are the same person,
  • Accounting policy,
  • Internal labor regulations, Remuneration regulations, Collective agreement, and similar documents,
  • Information about the authorities of employees and the planned procedure for interaction with the Contractor.

I.3.3. Document and/or information transfer can be carried out via: email, Viber, WhatsApp, Telegram, Skype, 1C. The Parties may also use YandexDisk or Google Drive. The most preferred methods are agreed upon by the Parties individually and are not limited to those mentioned above.

I.3.4. The Contractor stores the Customer's documents only for the current calendar year. The storage of documents from previous years is carried out by the Contractor only until the moment these documents are sent to the Customer. Usually, the documents are sent to the Customer in April-May of the year following the past year.

I.3.5. The list of documents that the Contractor transfers to the Client for the past calendar year is determined by the primary accounting documents stored by the Contractor during the calendar year (if any), personnel, accounting, and tax records according to the Client’s accounting policy, as well as reports submitted to regulatory authorities. The list of documents will change over time depending on the specific business activities of the Client and the tax regime they use. The list of documents transferred by the Contractor to the Client for the past calendar year may decrease or increase annually, using the data from the transaction journal for the calendar year. Such transfer is carried out entirely in a “paperless” format. The Contractor transfers to the Client only those documents on paper that were received from the Client on paper.

I.3.6. All incoming and outgoing primary accounting documents and/or information that reflect or confirm the business transactions of the Client must be transmitted by the Client to the Contractor as they occur (are compiled, received, etc.), but no later than the 5th day of the following calendar month. When any documents are “delayed,” the Client must inform the Contractor within the specified deadlines.

I.3.7. Any changes in the personnel composition, as well as information affecting the calculation of employee wages (administrative days, business trips, sick leave, vacation days, etc.), must be transmitted as they occur, but no less than once a week and no later than the last working day of each calendar month. Information on hiring and dismissing employees must be transmitted by the Client to the Contractor immediately upon occurrence or even earlier when such actions are only planned. This is due to the fact that the Client is obliged to transmit information to the Pension Fund of Russia (PFR) about hiring, dismissing (no later than the next working day after the order is issued), or transferring to another position (no later than the 15th day of the following month). Failure to notify in a timely manner will result in additional expenses for the Client, including penalties from the PFR and/or the State Labor Inspectorate.

I.3.8. All documents and/or information transmitted by the Client to the Contractor later than the specified deadlines will be recorded by the Contractor in the accounting records for the reporting period in which they are actually received. The specific method of recording is chosen from those possible in accordance with legal requirements and the Client's accounting policy. Such recording is not accompanied by supplementing past (closed) reporting periods in accounting with primary accounting documents but very often necessitates adjustments to the tax accounting of past periods. In such cases, the Contractor notifies the Client of the need for such changes. Changes are made by the Contractor for an additional fee.

I.3.9. The Contractor recommends that the Client notify the Contractor in advance of planned events that are not typical and daily for the Client. This way, the Client can receive additional useful information or ensure extra attention from the Contractor if necessary.

I.3.10. The Contractor provides the Client with the primary accounting documents prepared by the Contractor as they are created. The specific list is determined by the terms of the Client's applicable service plan. The Client independently ensures their printing, signing, and storage (a different procedure may apply only if approved in the Individual Terms of this agreement). The service plan terms or mutual agreement between the Parties may also stipulate that the Contractor simply notifies the Client of the need to print primary accounting documents and/or registers from the accounting database, sign them, and handle further usage and storage.

I.3.11. The Contractor acts based on a power of attorney issued by the Client and represents the Client's interests in regulatory authorities and, in some cases, in relations with the Client's counterparties.

I.3.12. When interacting with regulatory authorities on behalf of the Client, the Contractor uses its own electronic signature (E-Signature) whenever possible. The Contractor, in providing services under this Agreement, may interact with third parties to whom the Client issues powers of attorney to represent its interests in regulatory authorities. In specific cases where interaction with regulatory authorities is only possible electronically and only with the Client's E-Signature, the Contractor informs the Client of this requirement. The Client's E-Signature is not transferred to the Contractor for any use. By mutual agreement, the Parties may organize the preparation of necessary documents by the Contractor at the Contractor's office, another agreed-upon location, or via remote access, with the Client sending the documents themselves.

I.4. Payment Procedures and Tariff Plans

I.4.1. The Parties shall make payments in non-cash form using their own bank accounts. The Contractor may accept payment for its Services not from the Client, but from a third party, provided that the third party is a legal entity or an individual entrepreneur. The third party must pay from its own bank account and must clearly indicate in the payment details on whose behalf (Name and TIN) the payment is being made. The Client must provide the Contractor with an information letter indicating the name and TIN of the legal entity that will make the payment on its behalf or the full name and TIN of the individual entrepreneur. The Client is responsible for providing the third party with the correct and sufficient payment details of the Contractor. The Contractor may also send the Client a letter requesting payment for its Services to the accounts of third parties. In such a case, the Contractor is obliged to provide the Client with the correct and sufficient payment details of the third party.

I.4.2. The Client shall make the subscription fee payment, according to the applicable Tariff Plan, monthly no later than the 10th of each current month. In cases where a quarterly subscription fee is established, it shall be paid by the Client no later than the 15th of the first month of each quarter. Processing of primary accounting documents submitted for past (closed) reporting (tax) periods is paid separately and additionally when such operations require adjustments to accounting and/or tax registers of past periods, preparation of corrective reports and/or analytical calculations, which are also paid outside the scope of the Client’s applicable Tariff Plan. In cases where the Client is unable to make the monthly payment on time, they must notify the Contractor in writing, stating the reason and the timeframe for the delayed payment. Only in such cases can the Client expect to continue receiving Services from the Contractor in the event of a short-term delay in the next subscription payment (only 1 payment and for no more than 30 calendar days).

I.4.3. The Client shall pay for additional services within the timeframes agreed upon by the Parties. These timeframes are always specified in each invoice for additional services. If the Client does not pay these invoices within the agreed timeframes, the Contractor will not provide these services. Late payment of such invoices deprives the Client of the right to receive services within the previously agreed timeframes. The Contractor may unilaterally change the timeframes according to its service provision schedule.

I.4.4. Before concluding the Contract, the Contractor selects a Tariff Plan for the Client. At the stage of concluding the Contract, the Parties agree on additional specific issues. At any time, if the Client believes that they are entitled to a reduction in the subscription fee, they must notify the Contractor in writing. Each such request is considered by the Contractor on an individual basis.

I.4.5. The month of signing the contract is paid in full. Upon termination of the contract, the Contractor recalculates, resulting in either a refund of part of the subscription fee to the Client or an additional charge of the subscription fee to the Client. Additionally, upon signing and terminating the contract, the Client may incur additional organizational costs for the payment of additional services by the Contractor and/or third parties. The subscription fee under this Agreement is subject to annual indexation from January 1st of each calendar year. The indexation amount for the next calendar year is established annually between October and December of the current calendar year and corresponds to the official inflation rate for the past calendar year in the Russian Federation, increased by 1.6 times. The result of the indexation calculation for the subscription fee under this Agreement is rounded to the nearest whole ruble according to simple arithmetic rules.

I.4.6. The criteria for exhausting the Tariff plan include the number of employees, the number of transactions, the presence of branches, engagement in foreign economic activities, provision of intermediary services, etc. The Contractor, in the course of providing Services to the Client, monitors the compliance of the services provided with the applicable Tariff plan and notifies the Client of the exhaustion of the applicable Tariff plan, as well as the need to provide services beyond the scope of the applicable Tariff plan.

I.4.7. Changing the Tariff plan is usually carried out no more than once a calendar year. Preferably, such a change is made from January 1st of the year. Upon the exhaustion of the volume of services under the Client's applicable Tariff plan, it is often sufficient to agree on an individual additional payment for the additionally required volume of Services in the current calendar year.

I.4.8. The established monthly subscription fee for each Tariff plan is an average value of the cost of a certain set of Services, calculated for one calendar year. For this reason:

  • recalculations of the monthly subscription fee for an incomplete calendar year,
  • recalculations of the monthly subscription fee in cases of a sharp increase in the number of employees or operations, the emergence of new types of activities of the Client, etc.,
  • non-payment (or late payment) of the next monthly payment can only be regarded as the Client's debt to the Contractor and cannot be considered as temporary "non-use of the Contractor's services" by the Client.

I.5. Rights, Duties, and Responsibilities of the Parties

I.5.1. The Parties undertake to maintain confidentiality and not to disclose to third parties documents and/or information about each other. The Parties also take all necessary measures to ensure that their employees, agents, successors, without prior consent of the other Party, do not inform third parties about the details of this Agreement and the business activities of either Party.

I.5.2. The Parties undertake to check the communication channels (interaction channels) used in their work on working days from 09:00 to 16:00 Moscow time. Working days are determined in accordance with the production calendar for a standard five-day working week.

I.5.3. Each Party undertakes to fulfill the terms of this Agreement in good faith and has the right to demand the same from the other Party. Each of the Parties has the right to terminate this Agreement at its own initiative. The notice of termination of this Agreement is sent by one Party to the other Party in writing no later than two calendar months before the desired termination date.

If the Client is in default for more than two consecutive months, the Contractor has the right to unilaterally terminate the Agreement with the Client at any time, without prior notice to the Client.

I.5.4. The Contractor undertakes:

  • To provide Services of proper quality.
  • To provide Services in accordance with this Agreement.
  • If the Client wishes to independently prepare primary accounting documents in the accounting database, to explain the rules for entering data taking into account the features of the software, accounting and tax legislation, as well as business communication and document flow practices.

I.5.5. The Client undertakes:

  • To timely make payments under this Agreement.
  • To provide documents and/or information, and/or to instruct the Contractor to prepare documents only based on real facts of its business life.
  • To timely provide the Contractor with all documents and/or information necessary for the provision of Services.
  • When independently preparing documents in the accounting database, to correctly format the documents (taking into account the features of the software, accounting and tax legislation, as well as business communication and document flow practices).
  • To immediately notify the Contractor in writing in case of any claims against the Contractor regarding the Services provided.
  • Within 5 working days, to notify the Contractor of any claims regarding additional services received from the Contractor. The deadlines are calculated from the moment of sending the information letter about the provision of services by the Contractor to the Client.
  • To ensure the consent of all employees and individuals with whom civil law contracts are concluded for the processing of their personal data by the Contractor.

I.5.6. The Contractor has the right:

  • To receive timely payment under this Agreement.
  • To suspend the performance of its obligations under this Agreement in case of non-performance (or untimely performance) of obligations by the Client.
  • To refuse to perform obligations under this Agreement in case of non-performance (or untimely performance) of obligations by the Client.
  • To seek compensation for damages caused by the Client to the Contractor, exclusively due to the fault of the Client. This fact must be established in court.
  • To publish information on its website https://credo-expert.ru, as well as on social networks, about overdue debts of the Client. This information includes: the name, TIN (Taxpayer Identification Number), addresses of the Client, amounts of overdue debt, duration of non-payment, full names of individuals representing the Client.

I.5.7. The Client has the right:

  • To receive Services of proper quality.
  • To monitor the progress and quality of the Services provided by the Contractor at any time without interfering in its activities.
  • To seek compensation for damages caused by the Contractor to the Client, exclusively due to the fault of the Contractor. This fact must be established in court.
  • To temporarily reduce the subscription fee established by the applicable Tariff Plan or to change the Tariff Plan to a more suitable one in cases of significant changes in the conditions of conducting business activities or complete suspension of business activities by the Client for a period exceeding 3 calendar months. In this case, the Client submits a written Application to the Contractor explaining the situation. The Contractor considers each such application on an individual basis.

I.5.8. If the Client is a debtor, they have no right to demand from the Contractor the provision of any primary accounting documents, registers, certificates, reporting, and other documents for themselves personally or for presentation to third parties, including regulatory authorities. This provision also applies to the accounting database and the data contained therein. If the Client remains a debtor for more than 6 months, the Contractor deletes all accounting databases from the workspace, as well as documents stored in "paperless" form.

I.5.9. The Contractor does not verify the compliance of the real facts of business life with the documents submitted by the Client and/or compiled by the Contractor at the request of the Client. Accordingly, the Contractor bears no responsibility for reflecting in the accounting database facts of business life that did not correspond to reality. Also, the Contractor bears no responsibility for providing false, incomplete, or incorrect information (documentation) to any regulatory authorities, resulting from the provision by the Client of false, incomplete, or incorrect information (documentation) under this Agreement.

I.5.10. If the Client suspects that an employee of the Contractor has or is causing damage to the Client by disclosing confidential information to the Client's competitors or other third parties interested in causing damage to the Client, the Client must immediately, in writing, substantiate their suspicions with attached documents confirming the damage caused to them, and inform the head of the Contractor's organization. If the Contractor suspects that an employee of the Client has or is causing damage to the Contractor by disclosing confidential information to the Contractor's competitors or other third parties interested in causing damage to the Contractor, the Contractor must immediately, in writing, substantiate their suspicions with attached documents confirming the damage caused to them, and inform the head of the Client's organization.

I.5.11. Disputes and disagreements that may arise in the performance of this Agreement will be resolved through negotiations between the Parties wherever possible. If the Parties fail to reach an agreement during negotiations, the dispute shall be resolved in accordance with the current legislation of the Russian Federation.

I.5.12. The Parties understand that when using any software products, failures and/or technical malfunctions may occur, as well as unforeseen situations beyond the control of the Parties.

I.5.13. The Parties are released from liability for partial or complete non-performance of obligations under this Agreement if such non-performance was caused by force majeure circumstances arising after the conclusion of this Agreement as a result of extraordinary circumstances, including wars, epidemics, riots, the introduction by authorities of various restrictions or special rules, etc., which the Parties could not foresee or prevent. In such cases, the deadline for the performance of obligations under this Agreement by the Parties is postponed in proportion to the time during which these circumstances and their consequences exist. If the occurred circumstances and their consequences continue to exist for more than two months, the Parties conduct additional negotiations to identify acceptable alternative ways of fulfilling this Agreement.

I.6. Final Provisions

I.6.1. The Parties consent to the processing of their personal data (including all employees of each Party). The processing of personal data is carried out solely for the purpose of fulfilling the terms of this Agreement.

I.6.2. In all other matters not provided for by the terms of this Agreement, the Parties shall be guided by the current legislation of the Russian Federation. Any amendments and additions to this Agreement are valid if made in writing and duly signed by authorized representatives of the Parties.

I.6.3. All notifications and messages under this Agreement must be sent by the Parties to each other in writing via email, personal delivery of correspondence, or sending it through postal services.

I.6.4. This Agreement is made in two copies, each having equal legal force. One copy is kept by the Customer, and the other copy is kept by the Performer. This Agreement enters into force upon the signing of the Individual Terms.

P.S. Our company regularly monitors changes in the current legislation, especially in those regions where our clients conduct their economic activities.