If this letter correctly captures your expectations for this project, please sign this copy and return it to ABC accounting. This amount is subject to changes depending on any developments in the project. My total fee (initial estimate) is $560, with an hourly rate of $28. I will audit your consolidated balance sheet and the related income statements, cash flows, and retained earnings then express an opinion on them.įrom the company, I will expect that all financial records and relevant information be made available to me on time.

I, Felicia Watkins, will be your main contact for this project, and you can contact me if you have any questions. This engagement letter outlines the terms and limitations of the audit services ABC Accounting has agreed to perform for the Client, IJK Company, for the year ending 2031.

This signature will protect you from project creep, late payments, etc. Include a clause for the client to sign the letter if they agree with the terms of the engagement. Step 6: Confirm the Terms of the Agreement This could include providing you with relevant business records – make sure to outline the documents you need. Step 5: Identify the Client’s RolesĮxplain what actions you would like the client to perform to facilitate the project. Additionally, mention when you expect to receive payment, how your rates will change if the client requests extra services, and what happens if your payment is late. This is where you explain whether you charge per hour, per project, or a flat or retainer fee. Indicate your fees for the project, identifying your preferred fee structure. Now, outline how long the project will take, paying attention to ongoing projects, which can be described as monthly, quarterly, etc. It also protects you from project creep should the client ask for services outside your scope. Note: Including the scope of the project in the engagement letter gives you ground later on to prove that you provided the services you promised the client – nothing less, nothing more.

Your services may include any roles you are qualified to perform, including budgeting, advisory services, accounts payable, and accounts receivable. Next, explain exactly what you will be doing for the client during the duration of the project. Specify whether they are an individual, group, or company and write down their name, contact information, mailing address, website, etc. Start by indicating the date the engagement letter was prepared (at the top of the page), then identify the client. If you don’t have a template or have one and don’t know how to use it, here is a step-by-step guide to writing a Bookkeeping Engagement Letter: Step 1: Identify the Relevant Parties The templates will usually include all the elements discussed above presented in a professional, non-legalese language. Most accountants and bookkeepers have a template they use to prepare engagement letters for their clientele.

Confirmation of Terms: The last section of the letter allows the bookkeeper and client to confirm the terms of the engagement by affixing their signatures.

Client Roles: This element explains what the bookkeeper will expect from the client during the project, which in most cases, involves providing information that is relevant to the project.

Fees: The bookkeeper uses the letter to define their hourly rate, flat rate, retainer fee, or charge per project depending on the fee structure they use.If it is ongoing, it can define the parameters as monthly, annually, quarterly, etc. Project Period: The letter stipulates how long the project will last.This could include accounts payable, budgeting, tax filing, or advisory services. Project Scope: It describes the services the bookkeeper will offer during their period of engagement.Parties: The letter identifies the client, which could be an individual, group, or company, and the bookkeeper offering the services.To do this, the document must contain the following details: Essential Elements of a Bookkeeping Engagement Letterīookkeeping engagement letters define the scope of work a bookkeeper will do for a client.

Household bookkeeping template