Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The term “reasonable assurance” implies a risk that material monetary misstatements may remain undetected and precludes our guaranteeing the accuracy and completeness of the financial statements. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. You will need the client’s full legal name, address, and contact information.

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. Creating a solid bookkeeping engagement letter requires a thoughtful integration of essential components that meticulously define the relationship between the bookkeeper and the client. Each component plays a crucial role in ensuring clarity, mutual understanding, and legal protection. The next step after both parties have signed the engagement letter is to finish onboarding your client which includes receiving payment and gathering documentation.

  • There may be a time it may be necessary for the accounting firm to withdraw from the engagement.
  • For renewal, simply state whether the agreement terminates automatically and when.
  • Regularly reviewing and updating these letters will help keep this relationship in tune with the evolving needs of both parties.
  • Engagement letters serve as a formality to secure an understanding between the bookkeeper and the client.

You need to have this template ready to review with anyone you work with before any official hiring. This is because you must have the terms and conditions all laid out explicitly before a legal relationship forms and work begins. You will find it very difficult to set the scope of work, agree on expectations, and enforce timeframes without such an agreement. You will save a ton of time creating engagement letters for clients if you have a template prepared for bookkeeping engagements that can be customized. Sample engagement letters for each type of service you offer will save your team tons of time.

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Then, outline the bookkeeping services to be provided, the payments to be made and the due dates for those payments. Not included in the scope of this engagement is the preparation of the tax returns. Should a need arise that falls out of scope, ABC Accounting will contact you directly, assess the need, and quote an upfront price for Jones Co to either accept or decline. Accounting engagement letters should include terms which limit the firm’s liability as much as possible.

  • From the basic Sample Engagement Letter by the AICPA which has worked for years, to more eye-catching templates you can try out from platforms like Ignition or even Canva.
  • You’ve brought this to the attention of the client who says you are responsible for calling the bank to resolve the matter (assuming the bank will talk to you as an authorized representative).
  • It is an important part of the client onboarding process and should be completed for each client.

There are several actions that could trigger this block including submitting a certain word or phrase, a SQL command or malformed data. It will also help you build a good relationship with your client and avoid unpleasantness by eliminating confusion and clearly stating expectations. Our expectations of you are to provide all documentation in an accurate and clear manner. If you have any questions about your case, you should contact him/her directly.

Services included

Each service you render should be included in the scope of work with as much detail as possible. For example, does your engagement include follow up calls to the IRS, audit support, or document storage? If not, you need to clearly state the engagement is limited to the preparation of a tax return and any additional support needed is outside the scope of the initial engagement.

How to Write Letters of Engagement for Bookkeepers

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. Our responsibility in this engagement consists of completing the bookkeeping activities outlined above with care and due diligence. Whether you’re working with a single client or dozens, it’s important to protect yourself and your client by getting everything in writing from the outset. Even if you’ve worked with a client for many years or consider them a friend, you should still have an engagement letter for any work you perform. You may also want to include how a dispute would be handled should it arise such as by reasonable negotiations, arbitration or mediation.

Set expectations for responsibilities

Our fee is $[AMOUNT] / hour for the aforementioned services performed by our Firm. It is accurate to the best of the author’s knowledge as of the article date. This article should not be viewed as a substitute for recommendations of a retained professional. Such consultation is recommended in applying this material in any particular factual situations.

My engagement to prepare your tax returns will conclude with the delivery of the completed returns to you (if paper-filing), or your signature and our subsequent submittal of your tax return (if e-filing). If I am not able to e-file your returns, you will be solely responsible to file the returns with the appropriate taxing authorities. This letter can apply to future years of tax preparation services unless the agreement is terminated or amended in writing. Join the thousands of other bookkeepers our collection of 32 customizable accounting workflow templates and checklists here. If a client balks at the introduction of an engagement letter, rationally draw comparisons to the client’s business or life.

It’s about setting the stage, defining the terms, and clarifying the terrain of this collaborative expedition. An engagement letter in the world of bookkeeping is more than just a formality — it’s the compass that guides the journey of collaboration between a bookkeeper and their client. Imagine it as the roadmap that navigates through the landscape of expectations, roles, and responsibilities, ensuring both parties are aligned on the same path. There accountant help are a few good options to send engagement letters that will allow you to use (and re-use) your template, customize it to your client, and have your client e-sign the document. If you’re reading this far, you likely have an idea about what each component of the contents of engagement letters, as a legally binding document, usually have. This engagement letter includes the relevant terms that will govern the engagement for which it has been prepared.

To hire an accountant a simple agreement must be drafted that outlines the pay and scope of work provided. Due to the accountant having access to financial accounts, it’s highly recommended to use someone that is recommended by friends or family in order to know the person being hired is trustworthy. All monthly bookkeeping services will be completed by the 15th of the month. Though a bookkeeper cannot avoid liability for negligent work, this language can help if the contract ends under less than ideal circumstances. Each service can be included as a separate line item or all the services can be lumped together under a single charge.

For the client, the letter provides a comprehensive outline of the work to be done, the cost, and the expected timeframe. For the bookkeeper, it provides a documented understanding of the scope of the work, serving as a bulwark against any potential misunderstanding or conflict. There are also a number of fantastic resources available, showing nuances in their accounting and bookkeeping engagement letter template. Below, I’ve included a couple of sample engagement letters for several countries.

You will also want to review the payment terms, the process for payment and what happens in the case of late payment, such as a late fee or interest. We’ve created a sample accounting engagement letter template below, which you can use as a starting point. Who handles the accuracy of any information provided to complete the accounting engagement? Is the scope limited to a compilation service or is the client looking for a full audit? Knowing who is responsible for providing and processing information gets everyone to be on the same page and creates a smoother workflow.