With TaxDome, you can choose from understanding operating margin a broad range of templates created for bookkeeping, tax preparation and more. TaxDome also offers time-saving features — such as autofill via shortcodes, automated document sending and e-signature requests — streamlining the entire process from start to finish. If you no longer offer a specific service, for example, it’s worth updating your engagement letter to reflect that and improve the overall clarity of the work you’re providing. Ultimately, an engagement letter minimizes risk and protects both parties.

Services

Engagement letters set clear expectations, minimize risk and ensure both parties remain accountable. Having an engagement letter that’s clear and comprehensive is therefore essential before providing your services — and this is where templates come in handy. Download this free bookkeeping engagement letter template — created to include all the key components listed above.

When defining service details you can also include deadlines and fee structures. This section sets clear expectations for what the client needs to do to contribute to the process. What financial information is needed for you to provide accounting services? In what instances will you decline to offer your professional services?

1. Having a client sign your engagement letter is a crucial step before providing your services.
2. You and your client will each sign both copies of the engagement letter.
3. Engagement letters should be used by any accountant performing client work to protect themselves and establish a good business relationship based on transparency.
4. 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.

Top free templates every accounting firm should have

Below you’ll find our engagement letter, which details our solution and the nature of our engagement. Access hundreds of free accounting and bookkeeping process workflow templates. Here is a comprehensive list of the top free templates every accounting firm should have. The examples provide explanations as to which aspects to include for various service types. The letter is a commitment to professionalism and a formalization of the standards that you hold yourself to.

Free, Downloadable and Editable Bookkeeping Engagement Letter Template

That’s why we encourage you to consult a legal professional in your area to review the final version of your engagement letter and to have your questions answered. This investment will pay for itself in the future for any dispute resolution you may have to deal with. Any changes in scope or fees will be discussed and agreed upon at the time of renewal. You might decide to charge 50% upfront and 50% upon completion or break it down into monthly payments, but whatever your terms are, make sure they are apparent in the engagement letter. Your engagement letter should clearly outline the services you will provide, in this case, bookkeeping, payroll, or any related service.

But one software that stands out with its exciting features is Cone’s proposal to payment software which includes a comprehensive bookkeeping engagement letter assistance tool. Your client is unlikely to be familiar with legal or accounting jargon. As an accounting professional, it’s easy to forget that clients may not understand the abbreviations or complicated language in your engagement letter.

Maintain a professional and formal tone throughout the document, and prefer clear language over technical terms. It should also outline the limitations of liability for both parties. For example, you can detail the client’s responsibility for providing accurate information and the bookkeeper’s liability for errors or omissions. We recommend that you consult with a lawyer to make sure that you use appropriate language. According to investopedia, engagement letters need to be presented to the client at the beginning of the relationship before work commences. Once you and your client have had a verbal agreement to work together, the next step is for you to send them an engagement letter to make things official.

Another important aspect you must consider is how you’ll send the engagement letter to your clients. This example engagement letter from the AICPA, although general, encompasses all the aspects discussed above. It provides a practical starting point for US-based accounting professionals. Include a confirmation of these terms by asking for your client’s signature so they formally understand the agreement they’re entering into. Kick start your client relationships with an effective engagement letter.