A basic template is great for a new startup that requires basic bookkeeping services. This includes data entry, bank reconciliation, and monthly financial statements. An engagement letter should detail exactly what accounting, bookkeeping or other advisory professional services you will provide for a client. If the language is broad or open to interpretation, then so is your scope.
Scope of Service
Promptly sending a solid letter of engagement will also let your client know that your accounting business is well run and organized. Templates aren’t limited to engagement letters and onboarding, either. Almost every bookkeeping and accounting process can be expedited by using templates. The Karbon Template Library has hundreds of workflow templates, ready for you to add to your Karbon account with one click or download as Excel spreadsheets. For example, clients have a responsibility to provide prompt, accurate documents and financial information, which will allow you to meet your responsibilities. If you can’t perform the services you’re engaged for because your client hasn’t provided the information you need, you can refer back to your engagement letter.
Outline the process of termination, too, and include any conditions, such as providing 30 days’ written notice. The document also outlines the engagement period and the process for termination by either party. If you don’t know how long you’ll need bookkeeping services for, you can list it as an ongoing engagement. The primary purpose of a bookkeeping engagement letter 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.
- Late payments will incur a fee of $X for each number days past the due date.
- Engagement letters specify the terms and conditions of the relationship, whereas contracts may include additional legal conditions.
- If you don’t know how long you’ll need bookkeeping services for, you can list it as an ongoing engagement.
- Make sure the reasons and process for legal termination by either party is clear.
- Engagement TerminationThis agreement may be terminated by either party with number days’ written notice.
- The essence of this letter isn’t to impress your client with your accounting knowledge or verbose grammar.
Accounting Engagement Letter A+ Sample + Guide
It will lay the groundwork for a successful relationship while ensuring that you and your clients remain accountable for the agreed terms. This will outline how either party can end the working relationship, whether due to dissatisfaction with services provided or if one side decides they no longer need assistance. Having this in writing protects both you and your client from any unexpected surprises down the line.
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Identification of the parties
This will help the bookkeeper determine the client’s tax implications and reporting requirements. Yes, it statement of cash flows definition is advisable that you send an engagement letter to every client you will be working with. I’m an entrepreneurial CPA that founded Xen Accounting, a100% cloud-based accounting firm, in 2013. Following its acquisition in 2018,I started Future Firm to help accountants fast-track the growth of a modern, scalable accounting firm of their own. For full details of each service, please refer to the Service Terms section below.
Date of agreement
The essence of this letter isn’t to impress your client with your accounting knowledge or verbose grammar. It’s to help them understand in the simplest of terms what the terms of your relationship will look like. If there are any limitations to the scope of your services such as investment recommendations, or forensic accounting, it’s good practice to clearly define these limitations in this section.