Terms of Service

1. Introduction

These Terms of Service (“Terms”) govern the professional relationship between Active Accounting (Pty) Ltd (“Active Accounting”, “we”, “us”, or “our”) and our clients (“you” or “the Client”). Active Accounting is a registered accounting practice that operates in compliance with the standards and ethical requirements set out by the South African Institute of Chartered Accountants (SAICA) and the South African Institute of Tax Professionals (SAIT).

By engaging our services, whether through a signed engagement letter, verbal agreement, or commencement of services, you agree to be bound by these Terms. We recommend that you read these Terms carefully and contact us with any questions before engaging our services.

These Terms, together with your engagement letter (where applicable), constitute the entire agreement between Active Accounting and the Client regarding the provision of professional services.

2. Scope of Services

Active Accounting offers a range of professional accounting, tax, and business advisory services. The specific services to be provided will be agreed upon in your engagement letter. Our services include, but are not limited to:

• Monthly bookkeeping and management accounting
• VAT registration and bi-monthly VAT return submissions (VAT201)
• Annual financial statements preparation
• Individual and corporate income tax return preparation and submission
• Payroll processing and PAYE submissions (EMP201, EMP501)
• Company registration, CIPC annual returns, and statutory compliance

Services not expressly included in your engagement letter will be quoted separately before commencement. Active Accounting reserves the right to decline any engagement that conflicts with our professional ethics obligations.

3. Client Responsibilities

The quality and accuracy of our services depend substantially on the completeness and accuracy of the information you provide. By engaging Active Accounting, you agree to:

• 1Provide all requested financial records, documents, and information in a timely manner and in the format requested by Active Accounting.
• 2Ensure that all information provided to us is accurate, complete, and not misleading. We are entitled to rely on the information you provide without independent verification.
• 3Notify us promptly of any material changes to your business activities, structure, or financial circumstances that may affect the services we provide.
• 4Retain and make available all source documents (invoices, bank statements, contracts) for a minimum of five years as required by SARS and the Companies Act.
• 5Review and approve all returns, financial statements, and documents before submission to any regulatory authority. Approval may be given in writing or by email.

4. Fees and Payment Terms

• 1Fees are as agreed in your engagement letter or as quoted in writing prior to commencement of services. Monthly retainer fees are invoiced in advance on the first business day of each month.
• 2Payment is due within 7 days of invoice date. Late payments attract interest at the prime lending rate plus 2% per annum, calculated daily from the due date.
• 3Active Accounting reserves the right to suspend services if invoices remain outstanding for more than 14 days. We will provide written notice before suspending services.
• 4Additional services requested outside the scope of your engagement letter will be quoted separately and are payable in advance or as agreed.
• 5All fees are exclusive of VAT. VAT at the prevailing rate will be added to all invoices where applicable.

5. Confidentiality

• We will not disclose any confidential client information to third parties without your express written consent, except where required by law (e.g. SARS audit requests, CIPC filings, or court orders).
• Confidentiality obligations apply to all Active Accounting staff, contractors, and associates who may access your information in the course of providing services.
• We may use anonymised, aggregated data for internal business analysis and improvement of our services. No individual client data will be identifiable in such analyses.

6. Limitation of Liability

• 1Active Accounting's liability to the Client for any loss, damage, or claim arising from our services shall be limited to the fees paid by the Client to Active Accounting in the three months preceding the event giving rise to the claim.
• 2We shall not be liable for any indirect, consequential, special, or punitive damages, including but not limited to loss of profit, loss of business, or loss of opportunity, even if we have been advised of the possibility of such damages.
• 3We are not liable for any losses arising from information provided to us that was inaccurate, incomplete, or misleading, or from the Client's failure to provide information on a timely basis.
• 4We are not responsible for the acts or omissions of SARS, CIPC, or any other regulatory authority, including delays in processing returns, incorrect assessments, or system outages on their platforms.

7. Professional Indemnity Insurance

Active Accounting maintains professional indemnity insurance in accordance with the requirements of SAICA. This insurance provides coverage for claims arising from negligent acts, errors, or omissions in the provision of professional services.

Professional indemnity insurance does not cover claims arising from fraudulent instructions, wilful misconduct, or information provided by the Client that was known to be incorrect. Clients who believe they have a claim should notify us in writing within 30 days of becoming aware of the potential claim.

8. Termination of Services

• 1Either party may terminate the engagement by giving 30 days' written notice to the other party. Notice must be provided by email to the other party's registered email address.
• 2Active Accounting may terminate services immediately, without notice, in the event of non-payment of fees, if the Client provides fraudulent information, or if continuing the engagement would require us to act unethically or in breach of applicable laws.
• 3Upon termination, the Client is responsible for all fees incurred up to and including the termination date. Active Accounting will provide all completed work and client documents within 14 days of receiving full payment of outstanding fees.
• 4We will cooperate reasonably with the Client's new accountant or advisor to ensure a smooth transition. Reasonable professional fees may apply for transition assistance beyond routine handover.

9. Intellectual Property

All methodologies, templates, checklists, systems, and proprietary processes developed by Active Accounting remain the intellectual property of Active Accounting, irrespective of whether they are used in providing services to the Client.

Work product specifically created for and delivered to the Client (such as financial statements, tax returns, and management reports) becomes the property of the Client upon full payment of all outstanding fees. Active Accounting retains the right to retain copies of all work product for professional compliance and record-keeping purposes.

10. Dispute Resolution

• 1In the event of a dispute arising from these Terms or our services, the parties agree to first attempt to resolve the matter amicably through good-faith negotiation. Either party may request a meeting or written exchange to discuss and resolve the dispute.
• 2If the dispute cannot be resolved through negotiation within 30 days, either party may refer the matter to mediation through the AFSA (Arbitration Foundation of Southern Africa) before resorting to litigation.
• 3Should mediation fail, disputes shall be resolved through the courts of the Republic of South Africa, and you consent to the jurisdiction of the Johannesburg High Court for this purpose.

11. Amendments

Active Accounting reserves the right to amend these Terms at any time. We will notify existing clients of material changes by email at least 30 days before the changes take effect. The updated Terms will also be published on our website with a revised “Last updated” date.

Your continued use of our services after the effective date of any amendment constitutes your acceptance of the revised Terms. If you do not agree to the amended Terms, you may terminate the engagement by providing written notice before the effective date.

12. Contact Information

For any questions, concerns, or notices regarding these Terms, please contact us using the details below: