Terms of Service

1. Agreement to Terms

By accessing or using Munshi IQ (the “Service”), operated by PhronesisCode Solutions, LLC (“we,” “us,” “our”), you agree to be bound by these Terms of Service and our Privacy Policy. If you do not agree, do not use the Service.

These Terms constitute a legally binding agreement between you and PhronesisCode Solutions, LLC. If you are using the Service on behalf of a firm or organization, you represent that you have the authority to bind that entity to these Terms.

2. Description of Service

Munshi IQ is an AI-powered bookkeeping platform designed for accountants managing small business client books. The Service includes:

• AI-assisted transaction categorization with confidence scores
• Multi-format bank and payroll file import
• Full audit trail on all categorization decisions
• Financial reporting (P&L, Balance Sheet, General Ledger, Trial Balance)
• Tax-line mapping (IRS Forms 1120, 1120-S, 1065, Schedule C)
• Year-end close with automated pre-close validation
• Work queue and workpaper management
• AI-assisted journal entry creation

3. Service Environments

4. Accounts

• You must provide accurate and complete information when creating an account.
• You are responsible for maintaining the confidentiality of your account credentials. We authenticate via AWS Cognito. We never see or store your password.
• You must notify us immediately at connect@munshiiq.com of any unauthorized access to your account.
• One person per account. Account sharing is not permitted.
• You are responsible for all activity that occurs under your account.

5. Sandbox Environment

The following terms apply specifically to sandbox accounts:

5.1 Sample data only

The sandbox is pre-loaded with fictitious sample data for demonstration purposes. You must not upload real client financial data, personally identifiable information, or confidential business records to the sandbox. If you choose to upload real data, you do so entirely at your own risk and responsibility. We assume no liability for real data uploaded to the sandbox environment.

5.2 Temporary and non-recoverable

Sandbox accounts and all associated data (including any files you upload) are periodically deleted after the trial period expires (currently 48 hours). Deletion includes all transactions, chart of accounts, journal entries, reports, workpapers, and audit trail data. Sandbox data is not recoverable after deletion.

5.3 Provided “as is”

THE SANDBOX ENVIRONMENT IS PROVIDED “AS IS” AND “AS AVAILABLE” WITHOUT ANY WARRANTY OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, OR NON-INFRINGEMENT. Features may be limited, incomplete, or behave differently than the production environment. We do not guarantee uptime, availability, or performance for sandbox accounts.

5.4 Liability cap

Our total aggregate liability for any and all claims arising from or related to your use of the sandbox environment shall not exceed one hundred U.S. dollars ($100.00).

6. Production Environment (Coming Soon)

The production environment is not yet available. When launched, the following additional terms will apply:

• Data will be retained for 7 years per IRS record-keeping requirements
• Service level agreements (SLA) will be defined and published
• Pricing and subscription terms will be established
• Data export and post-termination access policies will be defined

We will notify waitlist and sandbox users when the production environment launches. These Terms will be updated accordingly, and you will be asked to re-accept the revised Terms before using the production environment.

7. Acceptable Use

You agree not to:

• Use the Service for any unlawful purpose or to facilitate fraud
• Upload real client data to the sandbox environment
• Attempt to gain unauthorized access to any part of the Service, other accounts, or connected systems
• Interfere with or disrupt the Service or its infrastructure
• Upload malicious files, scripts, viruses, or harmful content
• Reverse engineer, decompile, disassemble, or attempt to derive the source code of the Service
• Use the Service to build a competing product or replicate its functionality
• Exceed reasonable usage limits, abuse AI categorization budgets, or use automated tools to generate excessive API requests
• Share account credentials with unauthorized parties
• Scrape, crawl, or extract data from the Service by automated means

8. Your Data

8.1 Ownership

You retain all rights to data you upload to the Service. We do not claim ownership of your financial data, documents, transactions, journal entries, or any other content you create or upload. This includes all AI-generated outputs derived from your data: categorizations, journal entries, reports, and any other derivative content belong to you, not to us.

8.2 License to process

You grant us a limited, non-exclusive license to process your data solely for the purpose of providing the Service. This includes sending redacted transaction descriptions to AI providers for categorization. This license terminates when your account is closed, subject to legal retention requirements.

8.3 Accuracy and responsibility

You are responsible for the accuracy of data you upload. The Service is a tool to assist accountants, not a replacement for professional judgment. All AI-generated categorizations, journal entries, and reports are suggestions that require accountant review and approval before being relied upon for any purpose, including client deliverables, tax filings, or financial reporting.

8.4 Backup

While we maintain backups in the production environment, you are responsible for maintaining your own copies of critical data. No backup guarantees apply to the sandbox environment.

9. AI-Assisted Features

The Service uses artificial intelligence (currently AWS Bedrock) to assist with transaction categorization, journal entry creation, and other bookkeeping tasks. By using the Service, you acknowledge and agree to the following:

9.1 AI is not professional advice

AI-generated categorizations, suggestions, and outputs are not financial, tax, legal, or professional advice. The Service is a productivity tool that assists accountants. It does not replace the accountant’s professional judgment, licensing obligations, or fiduciary duties to their clients.

9.2 AI may be inaccurate

AI categorizations may be incorrect. Confidence scores indicate the AI’s estimated certainty. They are not guarantees of accuracy. High-confidence categorizations may still be wrong. The accountant is responsible for reviewing and approving all AI-generated content before relying on it.

9.3 Accountant professional responsibility

The accountant bears full professional responsibility for all client deliverables, regardless of whether AI assisted in producing them. Munshi IQ is a tool in the accountant’s workflow. It does not assume any professional liability, and its use does not transfer or reduce the accountant’s obligations under applicable professional standards, licensing requirements, or regulatory frameworks.

9.4 Continuous learning

The AI learns from your corrections within your firm’s context store. When you correct a categorization, the AI applies that correction to future similar transactions for that client. This learning is scoped to your firm. Your corrections do not affect other users’ accounts or train the underlying foundation model.

9.5 Data processing

Transaction descriptions are sent to AWS Bedrock for processing. We apply PII redaction before transmission. AWS Bedrock does not retain your data or use it to train models. See our Privacy Policy for full details on AI data processing.

9.6 Free-text inputs to AI features: your responsibility

Certain features (including the Journal Entry generator and Tax Category mapping) accept free-text input that is transmitted to our AI subprocessor (see Privacy Policy §6 (Subprocessors)). When you type into these fields, you are the controller of that text. Do not paste names, Social Security numbers, account numbers, or other personally identifiable information of third parties (including your clients’ counterparties) into these fields.

Bank-feed transaction descriptions are automatically PII-redacted before AI processing (see §9.5 above). Free-text fields are not. The redaction pipeline runs only on bank-import sources where third-party PII is unavoidable; voluntary free-text input is transmitted as you typed it.

You agree to indemnify PhronesisCode Solutions, LLC against any claim arising from third-party PII you paste into free-text AI input fields.

10. Financial Record Integrity

The Service enforces the following safeguards on financial records:

• Closed fiscal years are immutable. Once a fiscal year is closed, all transactions, journal entries, and categorizations for that year are write-protected. Any modification to closed-year data requires explicit override with acknowledgment, and the override is permanently recorded in the audit trail.
• Journal entries must balance. The system enforces that total debits equal total credits on every journal entry. Unbalanced entries cannot be saved.
• Full audit trail. Every categorization decision (whether by AI or manual) is recorded with: who made the decision, when, what account was assigned, what the AI originally suggested (if applicable), and the reason for any correction.
• No hard deletes on financial records. Transactions are never permanently deleted. Excluded transactions are marked with an “excluded” status and remain in the audit trail.

11. Intellectual Property

The Service, including its design, source code, algorithms, AI integrations, user interface, documentation, and the Munshi IQ name and branding, is owned by PhronesisCode Solutions, LLC and protected by applicable intellectual property laws.

These Terms grant you a limited, non-exclusive, non-transferable, revocable license to use the Service for its intended purpose during your active subscription. No other rights are granted.

12. Limitation of Liability

12.1 Disclaimer of warranties

THE SERVICE IS PROVIDED “AS IS” AND “AS AVAILABLE” WITHOUT WARRANTIES OF ANY KIND, WHETHER EXPRESS, IMPLIED, STATUTORY, OR OTHERWISE. WE DISCLAIM ALL IMPLIED WARRANTIES INCLUDING MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, AND NON-INFRINGEMENT. WE DO NOT WARRANT THAT THE SERVICE WILL BE UNINTERRUPTED, ERROR-FREE, OR SECURE.

12.2 Limitation of damages

TO THE MAXIMUM EXTENT PERMITTED BY LAW, WE SHALL NOT BE LIABLE FOR ANY INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL, OR PUNITIVE DAMAGES, INCLUDING BUT NOT LIMITED TO LOSS OF PROFITS, DATA, BUSINESS OPPORTUNITIES, OR GOODWILL, ARISING FROM YOUR USE OF THE SERVICE.

12.3 Liability cap

12.4 AI-specific disclaimer

We are not responsible for errors, omissions, or inaccuracies in AI-generated categorizations, journal entries, tax mappings, or financial reports. The accountant bears professional responsibility for reviewing all AI outputs and for all client deliverables produced using the Service. Use of AI features does not create any professional or advisory relationship between PhronesisCode Solutions, LLC and you or your clients.

13. Indemnification

You agree to indemnify and hold harmless PhronesisCode Solutions, LLC, its officers, employees, and contractors from any claims, damages, losses, or expenses (including reasonable attorney’s fees) arising from:

• Your use of the Service in violation of these Terms
• Your upload of real client data to the sandbox environment
• Any reliance on AI-generated outputs without adequate professional review
• Your violation of any applicable law or regulation

14. Termination

Upon termination of a production account, we will retain financial records for the legally required period (7 years per IRS requirements) even after your account is closed.

15. Changes to Terms

We may update these Terms from time to time. For material changes:

• We will notify registered users via email at least 30 days before changes take effect
• We will post the updated Terms with a revised “Last updated” date
• For the production environment, you will be asked to re-accept revised Terms before continued use

Continued use of the Service after changes take effect constitutes acceptance of the revised Terms.

16. Governing Law and Disputes

These Terms are governed by the laws of the State of Texas, United States, without regard to conflict of law principles. Any disputes arising from these Terms shall be resolved in the state or federal courts located in Texas. You consent to the personal jurisdiction of these courts.

17. Severability

If any provision of these Terms is found to be unenforceable or invalid, that provision will be limited or eliminated to the minimum extent necessary, and the remaining provisions will remain in full force and effect.

18. Entire Agreement

These Terms, together with our Privacy Policy, constitute the entire agreement between you and PhronesisCode Solutions, LLC regarding your use of the Service. These Terms supersede any prior agreements or understandings, whether written or oral.

19. Contact

PhronesisCode Solutions, LLC
Legal inquiries: legal@munshiiq.com
General inquiries: connect@munshiiq.com