Bookkeeping Services Engagement Letter


Bookkeeping Services Engagement Letter

bookkeeping engagement letter

In the amount of $________________ that shall act as an advanced payment on the Services provided by the Accountant/Bookkeeper. This Accountant/Bookkeeping Engagement Letter (“Letter”) confirms the services of _______________________ (“Accountant/Bookkeeper”) requested by _______________________ (“Client”) on this date of _______________________, 20____. You can now manage your business and grow your brand with a single, powerful software that keeps all of your appointments in line, your clients organized and your business booming. You need to be specific about exactly what the client is responsible for doing. Also, define exactly what information you need the client to provide. These may include giving the required information or records to the business.

bookkeeping engagement letter

I will correct your return for free and pay any penalties if I am at fault. An accountant / bookkeeping engagement letter outlines the scope of work that a professional will provide for a client and typically includes details about compensation and the project timeline. Engagement letters are used primarily for filing taxes or audit services for an individual or business entity. Since tax matters are within the purview of bookkeeping and accounting, a tax preparation engagement letter should resemble the two letters described above. As such, it is not unusual to see an engagement letter for accounting and tax services.

Though this part does not directly benefit the bookkeeper, it’s important to state you intend to protect the client’s data. Manual techniques can be quite time-consuming, whether it’s looking for the appropriate papers, making sure all procedures are completed precisely, or making sure of compliance. But, thanks to automation solutions, you may now forget about these time-consuming tasks. By using a secure solution to automate the process of collecting engagement letters, you can be confident that the necessary data is gathered precisely and on time while freeing up essential people resources.


Any attempt by the Accountant/Bookkeeper to assign, transfer, or subcontract any rights, duties, or obligations arising hereunder shall be void and of no effect. It is necessary to clearly identify the intended recipient of your engagement letter. This should be taken care of in the section meant for the name and address of the client as well as in your introduction. The last section of your engagement letter should confirm the terms of the engagement. Under most engagement terms, the client is required to perform specific actions.

bookkeeping engagement letter

A well-done engagement letter sets the tone for the relationship and starts everyone off on level ground. One of the biggest reasons why we want good engagement letters in place is to protect your scope of work and to prevent scope creep. Based on this example, an engagement letter helps promote clarity and transparency in their professional relationships and protects their interests by clearly defining the terms of engagement with their service providers. By clearly stating each service provided under the contract in as much detail as possible, the accountant cannot be expected to provide any additional services outside the scope of the agreement.

What Your Bookkeeping Engagement Letter Should Include

By defining which services are included from the outset, you give yourself a contractual out for respectfully saying “no” to work outside the scope of your project. File Request Pro is an excellent choice for keeping sensitive documents secure and safely stored. The level of security offered by the File Request Pro platform meets all the standards set by regulatory bodies which makes it an ideal solution for storing confidential documents. Unlike ubiquitous cloud storage services, File Request Pro prevents any unwanted eyes from ever accessing sensitive documents. A confirmation of terms that establishes that the client understands the business contract should be included at the bottom of your engagement letter. Describe the amount and frequency of bills the client will receive.

If your tax return is selected for audit by the IRS or by the state tax authorities, I am available to represent you or to prepare materials in response to correspondence. However, these are additional expenses not included in my tax preparation fees and I will render additional invoices for the time and expense incurred. Please let me know right away if you receive any letters from the IRS or any other tax agency.

Unfortunately, Ignition doesn’t support payments in South Africa, but it’s something we’re working on in the future. You’ll still be able to engage clients seamlessly with online proposals and automated engagement letters, and run your business on autopilot by connecting apps to Ignition. The primary purpose of a 4 Popular Free and Open Source Accounting Software is to clearly state the expectations of your agreement. If you don’t state your expectations clearly, you could run into confusion in the future. Having a clear initial engagement letter is one of the best ways to provide clarity and eliminate all confusion right off the bat.

Get the Bookkeeping Engagement Letter

Most engagement letters are a two-edged sword, communicating your terms to clients while simultaneously giving your firm a way to quickly identify clients who aren’t the best for your business. In addition to the accountant’s services and responsibilities, the contract will also detail the client’s responsibilities, which include providing financial information and taking responsibility for said information’s accuracy. The working papers for this engagement are the property of our firm and constitute confidential information and will be retained by us in accordance with our policies and procedures. If any dispute arises (between/among) the parties hereto, the parties agree first to try in good faith to settle the dispute through non-binding mediation. The parties agree that, if any dispute cannot be settled through mediation, the dispute may then be brought before a court of competent jurisdiction, but the matter will ultimately be decided by the court, sitting without a jury. The parties recognize they have knowingly and voluntarily agreed to waive all rights to have any such dispute determined by a jury, but otherwise retain all rights afforded under the applicable civil justice system.

It leaves a bad taste in everyone’s mouth, whether you’re the client who feels like they’re being overcharged or the bookkeeper who feels like they’re being cheated out of well-earned compensation. Check out these Accounting templates if you need a proper record of all monetary activities. DISCLAIMERNothing on this site shall be considered legal advice and no attorney-client relationship is established.

That’s why we’ve provided the above bookkeeping engagement letter samples. This could mean monthly, yearly, quarterly – you need to define the terms of ‘ongoing’ if this is the case. Below is an engagement letter template you can use for identifying the parties. Here is the ultimate step-by-step guide to writing an amazing engagement letter. We will also provide some engagement letter samples so you can see what the finished product should look like.

  • The Accountant/Bookkeeper shall conduct the Services within the specifications and guidelines set by the Client.
  • You also agree to provide us with a copy of the final reproduced material for our approval before it is distributed.
  • This provision for arbitration shall be specifically enforceable by the parties and the decision of the arbitrator in accordance herewith shall be final and binding without right of appeal.
  • Once the bookkeeper has commenced work, it’s often too late to try to define the scope of the project.

An engagement letter will indicate the duration of the agreement, which may be for a defined period, on an ongoing basis, or another arrangement by which it ends or is renewed. The signing date of the letter must be earlier than the agreement start date. In an effort to provide you with an estimate of the total costs involved in pursuing this matter, an estimate of fees and expenses is provided below. Please keep in mind that this is only an estimate and that, depending upon the time required and the complexity of the action, actual costs may exceed this estimate.

Scope of Services

If you’re already using a proposal tool, see if it also has the ability to generate an engagement letter to send with the proposal. When a client signs up for professional services, that’s great, but the relationship is still fragile. Certification requirements vary depending on the jurisdiction, and generally include work experience, training, and a bachelor’s degree. Although a license isn’t required to work as a professional bookkeeper, there are nationally-recognized certifications that may help improve employment opportunities. Only certified public accountants (CPAs) can prepare financial statements for submission to Securities and Exchange Commission (SEC).

It is essential to renew your engagement letters regularly, preferably annually. Renewing annually gives you a chance to review your prices and if the scope needs to change. If additional services are required, this gives you a chance to allocate the proper amount of time and adjust your fees accordingly. This section of the engagement letter is significant and clearly defines what you will deliver and what work is not included. This will help mitigate scope creep, which is when the deliverables of a project expand from what was initially set – without allocating additional time or money.

In addition, because an engagement letter clearly defines the services and fees, it’s an essential tool in preventing scope creep. Before you provide any accounting services to a client, you and your client must agree on the terms of your engagement. The bookkeeping engagement letter will clarify the responsibilities of each party in the engagement and is critical when things don’t go as planned. Bookkeeping engagement letters are a powerful tool for expanding your business while alleviating risks.

If your engagement letter plainly outlines this information, it helps remove potential confusion and forgetfulness, saving you time, stress, and potentially from an upset client. Join the thousands of other bookkeepers our collection of 32 customizable accounting workflow templates and checklists here. This free resource includes a ton of the most popular accounting templates including monthly bookkeeping, weekly accounting analysis, client onboarding procedures, and common tax return forms. Despite their convenience and accessibility, the privacy of our data stored on these platforms cannot be guaranteed, raising potential security risks for the letters. Engagement letters, however, are a valuable part of a business relationship.

The financial statements are the responsibility of the Company management. Management is also responsible for making all financial records and related information available to us. Now you have a good idea of the top things to include in your bookkeeping engagement letter.

As the bookkeeper, the deadlines should be contingent on receiving access to the client’s information and accounting system. For the client, the timelines should include reasonable turnaround times for the finished project once the information has been provided. A bookkeeping engagement letter sets the tone and scope of the bookkeeping project.

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