Sample General Engagement Letter Resources

I’m an entrepreneurial CPA that founded Xen Accounting, a 100% 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. 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.

• Unfortunately, the client did not tell the CPA a material fact, and the client paid over $2 million more in tax than anticipated.
• There are many types of accounting projects that should have signed engagement letters in place, including tax engagements, accounting engagements, bookkeeping engagements, and consulting services.
• We suggest you include a statement about what happens if the client requests something outside the terms of engagement.
• This one might seem obvious, but if you’re starting with a template, make sure you update the template to include both parties’ names and addresses.

We may, or may not, receive some form of compensation for such referral. Your consent to this arrangement is included in your acceptance of this Engagement Agreement. Notwithstanding those limitations, you represent that you have the knowledge necessary to allow you to place these financial reports in the proper context.

To Be Completed By Client’s Authorized Representative

Advisors who don’t pay attention to this process are at risk of overservicing clients (known as scope creep) and of exposing themselves to a range of other challenges. CAMICO Specialists review the letters every year and update them as necessary. If you prefer to write your own engagement letter, the Engagement Letter Resource Center includes tools and checklists that provide step-by-step guidance through the letter-writing process.

• WCG (formerly Watson CPA Group) treats any information concerning our clients and former clients with strict confidentiality.
• However, time sensitive projects have greater potential liability due to their rushed nature.
• This letter is to confirm our mutual understanding of the terms of our engagement to provide accounting and review services for your firm.
• Your consent to this arrangement is included in your acceptance of this Engagement Agreement.
• Examples are for illustrative purposes only and not intended to establish any standards of care, serve as legal advice, or acknowledge any given factual situation is covered under any CNA insurance policy.

A CPA was asked to calculate the tax implications of a hypothetical sale of a family business. In the engagement letter, you’ll need to describe the services you will offer. These may include budgeting, accounts receivable, accounts payable, and/or advisory services. To help certain clients’ irrational expectations, you can additionally include what will happen if they want additional services outside the scope of the existing contract. Consider your updated engagement letter as a means of laying out in detail the conditions, cost structure, and services included in your proposal. Accounting or Bookkeeping Engagement letters, which are sent to clients by your accounting or CPA firm, are legal agreements that specify the terms of your general working relationship with them.

Accounting & Tax

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. By having this in place, you protect yourself from any legal troubles in the future.

The most common accountant and bookkeeper licenses are listed below. While we stand behind our professional judgment and experience, this does not override your own business judgment. We are also not responsible for changes to your books made by yourself or your staff. We are excited about the opportunity to serve you in your new business endeavor. Knowing your bookkeeping is in good hands is an important step in ensuring the success of your business.

What is Your Fee for the Service?

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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 cpa bookkeeping services turnaround times for the finished project once the information has been provided. We are pleased to be able to serve you, and your accounting and payroll needs.