Accounting Engagement Letter Template

Fully editable with standard terms and clauses. Send and e-sign it online.

Accounting Engagement Letter Template

Fully editable with standard terms and clauses. Send and e-sign it online.


Accounting Letter of Engagement

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Accounting Letter of Engagement

Accounting Letter of Engagement
First Name
Last Name
Acme LLC.
First Name
Last Name
Corporation Corp.

THIS ACCOUNTING SERVICES LETTER (the "Agreement") is made effective as of June 2, 2023 (the "Effective Date"), by and between: (1) cool company (hereinafter "Company"), located at [ENTER COMPANY ADDRESS] and (2) Sample Client (hereinafter "Client"), located at [ENTER CLIENT ADDRESS] (collectively referred to herein as the "Parties", and individually as a "Party"). The Parties agree to the following terms of services.

  1. Company shall provide the following services to Client: [ENTER APPLICABLE SERVICES DESCRIPTION].

    Company will make no attempt to adjust the records to reflect Generally Accepted Accounting Principles ("GAAP") nor to reflect proper tax record keeping. Company will make no audit or other verification of the data Client submits. Company will not perform any compilation, review or audit of any of the financial information. To perform the Services, Company will need to obtain information on a timely and periodic basis from Client. These items include, but are not limited to, all the input, such as trial balances, general ledgers, bank statements, and any other information or documentation that we may require to complete the work of this engagement. These items and any other items that Company obtains from Client will be based on information provided by Client and will be used with limited to no verification or investigation. Client's cooperation is an integral part of completing this engagement and Client agrees to provide resources and personnel with the appropriate knowledge to assist Company in completing this engagement. Client may request that Company perform additional services at a future date not contemplated by this Agreement. If this occurs, Company will communicate with Client regarding the scope and estimated cost of these additional services. Engagements for additional services will necessitate that the Parties sign a separate written agreement to reflect the obligations of both Parties. The following activities are considered outside the scope of this Agreement: (a) recording activities into QuickBooks, including journal entries, receipts, payments, generating invoices, performing bank reconciliations, (b) review and analysis of real estate software products, (c) discussion of accounting processes and procedures and/or (d) review of legal agreements.

  2. This Agreement will begin on the Effective Date written above, and shall continue until [END DATE OR "until the work is completed"]. Company and Client may extend the term of this Agreement upon the mutual written consent of the Parties hereto. The Parties agree that the terms of this Agreement, including the Services and compensation provided herein, may get amended if this Agreement is extended beyond the term of this Agreement.

  3. Client shall compensate Company for the Services as follows: the total services fee (not including any additional and/or out-of-pocket expenses) is [PAYMENT RATE] (the "Total Services Fee"). Client shall pay 50% of the Total Services Fee as of the Effective Date of this Agreement and the remaining 50% of the Total Services Fee when invoiced by Company to Client upon the completion of the Services (to be determined in Company's discretion). Client shall pay all invoices within [X DAYS TO PAY] of receipt from Company. In the event Client fails to pay any portion of an invoice when due, a late payment penalty of [LATE FEE PERCENTAGE]% will be assessed for every month such payment is delayed. Invoices may be paid online or other methods of payment included on invoices. Client will reimburse Company for all reasonable expenses incurred by Company in performing the Services pursuant to this Agreement, only if Company receives written consent via email from an authorized representative of Client prior to incurring such expenses and submits receipts for such expenses to Client.

  4. Company retains all ownership rights to any materials provided to Client during the term of this Agreement. The materials Client is provided by Company are for Client's use only and are being provided to Client with a single-user license. Client is not authorized to share, copy, distribute, or otherwise disseminate any materials received from Company electronically or otherwise without Company's prior written consent. All such intellectual property shall remain the sole property of Company, and no license to sell or distribute Company's materials is hereby granted or implied. Client agrees not to reproduce, duplicate, copy, sell, trade, resell and/or exploit for any commercial or personal purposes any materials provided by Company to Client without Company's prior written consent.

  5. Client acknowledges that Client takes full responsibility for the Client's decisions made before, during and after the Services provided by Company. All information and the Services provided to Client are made available to Client as business tools for Client's own use. Client accepts full responsibility for its choices, actions and results, and expressly assumes the risk of the Services for Client's use, or non-use, of the information provided to Client. Client also acknowledges and understands that Client expressly assumes all of the risks related to the Services provided by Company to Client, whether or not such risks were created or exacerbated by Company. Notwithstanding anything to the contrary in this Agreement, Company makes no and disclaims all warranties, express or implied, including the implied warranties of merchantability, fitness for a particular purpose with respect to the Services to the extent permitted by applicable law. Company makes no representations or warranties as to the success of the Services for any purpose or use. In no event shall Company be liable to Client or to any other person for any incidental, consequential or special damages arising from the Services as herein contemplated. Past results are in no way a guarantee of results for any current client of Company. Client hereby disclaims that it is relying upon or has relied upon any representations or warranty not included in this Agreement that may have been made by any person, and acknowledges and agrees that Company disclaims any such other representations and warranties. Client freely and voluntarily assumes all risks involved with receiving the Services described herein. Client further understands and acknowledges that desired or anticipated results may not be achieved, and Client takes full responsibility for Client's results and actions and decisions. Company makes no guarantee, representation or warranty as to the results that Client may attain through the services and consultant explicitly disclaims any warranty or guarantee, express or implied, of results.

  6. Company is an independent contractor with respect to its relationship to Client. Neither Company nor Company's employees are or shall be deemed for any purpose to be employees of Client. Client shall not be responsible to Company, Company's employees, or any governing body for any payroll taxes related to the performance of the Services.

  7. Under no circumstances shall Company be liable to Client or any third party for indirect, incidental, consequential, special or exemplary damages (even if that Party has been advised of the possibility of such damages), arising from the Services herein contemplated or any provision of this Agreement, such as, but not limited to, loss of revenue or anticipated profit or lost business, costs of delay or failure of delivery, or liabilities to third-parties arising from any source. Company's maximum liability hereunder shall be limited to the total amount of fees paid by Client to Company hereunder (not including any monetary amounts transferred by Client to Company to be paid by Company to a third-party on behalf of Client). Client releases and discharges Company and its affiliates, successors and assigns, officers, employees, representatives, partners, agents, subcontractors and anyone claiming through them (collectively, the "Company Parties"), in their individual and/or corporate capacities, from any claims, liabilities, obligations, promises, agreements, disputes, demands, damages, cause of action, tax liability and/or financial liabilities of any kind relating to the services of Company.

  8. Client agrees to defend, indemnify, and hold harmless Consultant and its officers, directors, agents, affiliates, distributors, representatives, and employees from any and all third-party claims, demands, liabilities, costs and expenses, including reasonable attorneys' fees, costs and expenses resulting from Client's material breach of any duty, representation or warranty under this Agreement.

  9. This Agreement is not assignable, in whole or in part, by Client without the prior written consent of Company. Any attempt to make such assignment shall be void.

  10. In any legal action between the Parties concerning this Agreement, the prevailing Party shall be entitled to recover reasonable attorneys' fees and costs.

  11. This Agreement may be terminated by either Party hereto at any time and for any reason provided the Party seeking such termination submits written notice to the other Party thirty (30) days in advance of termination.

  12. If a Party defaults by failing to substantially perform any provision, term or condition of this Agreement (including without limitation the failure to make a monetary payment when due), the other Party may terminate this Agreement by providing written notice to the defaulting party. The notice shall describe with sufficient detail the nature of the default. The Party in default shall have ten (10) business days from the effective date of such notice to cure the default(s). Unless waived by the Party providing the notice, the failure to cure the default(s) within such time period shall result in the automatic termination of this Agreement.

  13. If any provision of this Agreement is held to be invalid, illegal or unenforceable, the remaining portions of this Agreement shall remain in full force and effect and construed so as to best effectuate the original intent and purpose of this Agreement.

  14. This Agreement shall be construed in accordance with the laws of the United States of America, without regard to conflict of laws rules. Venue shall be in a court of competent jurisdiction in the United States of America, and both Parties expressly consent to jurisdiction in such courts.

  15. This Agreement supersedes all prior agreements and understandings between the Parties for performance of the Services and constitutes the complete agreement and understanding between the Parties. The Parties may only amend this Agreement in a written document signed by both Parties.

  16. The Client acknowledges that success in any engagement between Client and Company is predicated on the participation and availability of the Client. Client is solely responsible for creating and implementing its own decisions, choices, actions and results arising out of or resulting from the consulting relationship contemplated herein. As such, Client agrees that Company is not and will not be liable or responsible for any actions or inaction, or for any direct or indirect result of any services provided by Company.

IN WITNESS WHEREOF, the Parties have executed this Accounting Services Letter as of the date first written above.

Accounting Letter of Engagement
First Name
Last Name
Acme LLC.
First Name
Last Name
Corporation Corp.

Accounting Engagement Letter Template

Fully editable with standard terms and clauses. Send and e-sign it online.

Accounting Engagement Letter Template

Fully editable with standard terms and clauses. Send and e-sign it online.

Bonsai has helped create 1,023,928 documents and counting.

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Date: March 8th 2023



Acme LLC.

Corporation Corp.

This Contract is between Client (the "Client") and Acme LLC, a California limited liability company (the "Coach").

The Contract is dated January 23, 2023.


1.1 Project. The Client is hiring the Coach to develop a coaching relationship between the Client and Coach in order to cultivate the Client's personal, professional, or business goals and create a plan to achieve those goals through stimulating and creative interactions with the ultimate result of maximizing the Client's personal or professional potential.

1.2 Schedule. The Coach will begin work on February 1, 2023 and will continue until the work is completed. This Contract can be ended by either Client or Coach at any time, pursuant to the terms of Section 4, Term and Termination.

The Coach and Client will meet by video conference, 4 days per month for 2 hours.

1.3 Payment. The Client will pay the Coach an hourly rate of $150. Of this, the Client will pay the Coach $500.00 (USD) before work begins.

1.4 Expenses. The Client will reimburse the Coach's expenses. Expenses do not need to be pre-approved by the Client.

1.5 Invoices. The Coach will invoice the Client in accordance with the milestones in Section 1.3. The Client agrees to pay the amount owed within 15 days of receiving the invoice. Payment after that date will incur a late fee of 1.0% per month on the outstanding amount.

1.6 Support. The Coach will not be available by telephone, or email in between scheduled sessions.


- A coaching relationship is a partnership between two or more individuals or entities, like a teacher-student or coach-athlete relationship. Both the Client and Coach must uphold their obligations for the relationship to be successful.

- The Coach agrees to maintain the ethics and standards of behavior established by the International Coaching Federation (ICF).

- The Client acknowledges and agrees that coaching is a comprehensive process that may explore different areas of the Client's life, including work, finances, health, and relationships.

- The Client is responsible for implementing the insights and techniques learned from the Coach.


3.1 Overview. This section contains important promises between the parties.

3.2 Authority To Sign. Each party promises to the other party that it has the authority to enter into this Contract and to perform all of its obligations under this Contract.

3.3 Coach Has Right To Give Client Work Product. The Coach promises that it owns the work product, that the Coach is able to give the work product to the Client, and that no other party will claim that it owns the work product. If the Coach uses employees or subcontractors, the Coach also promises that these employees and subcontractors have signed contracts with the Coach giving the Coach any rights that the employees or subcontractors have related to the Coach's background IP and work product.

3.4 Coach Will Comply With Laws. The Coach promises that the manner it does this job, its work product, and any background IP it uses comply with applicable U.S. and foreign laws and regulations.

3.5 Work Product Does Not Infringe. The Coach promises that its work product does not and will not infringe on someone else's intellectual property rights, that the Coach has the right to let the Client use the background IP, and that this Contract does not and will not violate any contract that the Coach has entered into or will enter into with someone else.

3.7 Client-Supplied Material Does Not Infringe. If the Client provides the Coach with material to incorporate into the work product, the Client promises that this material does not infringe on someone else's intellectual property rights.


This Contract is ongoing until it expires or the work is completed. Either party may end this Contract for any reason by sending an email or letter to the other party, informing the recipient that the sender is ending the Contract and that the Contract will end in 7 days. The Contract officially ends once that time has passed. The party that is ending the Contract must provide notice by taking the steps explained in Section 9.4. The Coach must immediately stop working as soon as it receives this notice unless the notice says otherwise.

If either party ends this Contract before the Contract automatically ends, the Client will pay the Contractor for the work done up until when the Contract ends. The following sections don't end even after the Contract ends: 3 (Representations); 6 (Confidential Information); 7 (Limitation of Liability); 8 (Indemnity); and 9 (General).


The Client is hiring the Coach as an independent contractor. The following statements accurately reflect their relationship:

- The Coach will use its own equipment, tools, and material to do the work.

- The Client will not control how the job is performed on a day-to-day basis. Rather, the Coach is responsible for determining when, where, and how it will carry out the work.

- The Client will not provide the Coach with any training.

- The Client and the Coach do not have a partnership or employer-employee relationship.

- The Coach cannot enter into contracts, make promises, or act on behalf of the Client.

- The Coach is not entitled to the Client's benefits (e.g., group insurance, retirement benefits, retirement plans, vacation days).

- The Coach is responsible for its own taxes.

- The Client will not withhold social security and Medicare taxes or make payments for disability insurance, unemployment insurance, or workers compensation for the Coach or any of the Coach's employees or subcontractors.


6.1 Overview. This Contract imposes special restrictions on how the Client and the Coach must handle confidential information. These obligations are explained in this section.

6.2 The Client's Confidential Information. While working for the Client, the Coach may come across, or be given, Client information that is confidential. This is information like customer lists, business strategies, research & development notes, statistics about a website, and other information that is private. The Coach promises to treat this information as if it is the Coach's own confidential information. The Coach may use this information to do its job under this Contract, but not for anything else. For example, if the Client lets the Coach use a customer list to send out a newsletter, the Coach cannot use those email addresses for any other purpose. The one exception to this is if the Client gives the Coach written permission to use the information for another purpose, the Coach may use the information for that purpose, as well. When this Contract ends, the Coach must give back or destroy all confidential information, and confirm that it has done so. The Coach promises that it will not share confidential information with a third party, unless the Client gives the Coach written permission first. The Coach must continue to follow these obligations, even after the Contract ends. The Coach's responsibilities only stop if the Coach can show any of the following: (i) that the information was already public when the Coach came across it; (ii) the information became public after the Coach came across it, but not because of anything the Coach did or didn't do; (iii) the Coach already knew the information when the Coach came across it and the Coach didn't have any obligation to keep it secret; (iv) a third party provided the Coach with the information without requiring that the Coach keep it a secret; or (v) the Coach created the information on its own, without using anything belonging to the Client.

6.3 Third-Party Confidential Information. It's possible the Client and the Coach each have access to confidential information that belongs to third parties. The Client and the Coach each promise that it will not share with the other party confidential information that belongs to third parties, unless it is allowed to do so. If the Client or the Coach is allowed to share confidential information with the other party and does so, the sharing party promises to tell the other party in writing of any special restrictions regarding that information.


Neither party is liable for breach-of-contract damages that the breaching party could not reasonably have foreseen when it entered this Contract.


8.1 Overview. This section transfers certain risks between the parties if a third party sues or goes after the Client or the Coach or both. For example, if the Client gets sued for something that the Coach did, then the Coach may promise to come to the Client's defense or to reimburse the Client for any losses.

8.2 Client Indemnity. In this Contract, the Coach agrees to indemnify the Client (and its affiliates and their directors, officers, employees, and agents) from and against all liabilities, losses, damages, and expenses (including reasonable attorneys' fees) related to a third-party claim or proceeding arising out of: (i) the work the Coach has done under this Contract; (ii) a breach by the Coach of its obligations under this Contract; or (iii) a breach by the Coach of the promises it is making in Section 3 (Representations).

8.3 Coach Indemnity. In this Contract, the Client agrees to indemnify the Coach (and its affiliates and their directors, officers, employees, and agents) from and against liabilities, losses, damages, and expenses (including reasonable attorneys' fees) related to a third-party claim or proceeding arising out of a breach by the Client of its obligations under this Contract.


9.1 Assignment​. This Contract applies only to the Client and the Coach. Neither the Client nor the Coach can assign its rights or delegate its obligations under this Contract to a third-party (other than by will or intestate), without first receiving the other's written permission.

9.2 Arbitration. As the exclusive means of initiating adversarial proceedings to resolve any dispute arising under this Contract, a party may demand that the dispute be resolved by arbitration administered by the American Arbitration Association in accordance with its commercial arbitration rules.

9.3 Modification; Waiver. To change anything in this Contract, the Client and the Coach must agree to that change in writing and sign a document showing their contract. Neither party can waive its rights under this Contract or release the other party from its obligations under this Contract, unless the waiving party acknowledges it is doing so in writing and signs a document that says so.

9.4. Noticies.

(a) Over the course of this Contract, one party may need to send a notice to the other party. For the notice to be valid, it must be in writing and delivered in one of the following ways: personal delivery, email, or certified or registered mail (postage prepaid, return receipt requested). The notice must be delivered to the party's address listed at the end of this Contract or to another address that the party has provided in writing as an appropriate address to receive notice.

(b) The timing of when a notice is received can be very important. To avoid confusion, a valid notice is considered received as follows: (i) if delivered personally, it is considered received immediately; (ii) if delivered by email, it is considered received upon acknowledgement of receipt; (iii) if delivered by registered or certified mail (postage prepaid, return receipt requested), it is considered received upon receipt as indicated by the date on the signed receipt. If a party refuses to accept notice or if notice cannot be delivered because of a change in address for which no notice was given, then it is considered received when the notice is rejected or unable to be delivered. If the notice is received after 5:00pm on a business day at the location specified in the address for that party, or on a day that is not a business day, then the notice is considered received at 9:00am on the next business day.

9.5 Severability. This section deals with what happens if a portion of the Contract is found to be unenforceable. If that's the case, the unenforceable portion will be changed to the minimum extent necessary to make it enforceable, unless that change is not permitted by law, in which case the portion will be disregarded. If any portion of the Contract is changed or disregarded because it is unenforceable, the rest of the Contract is still enforceable.

9.6 Signatures. The Client and the Coach must sign this document using Bonsai's e-signing system. These electronic signatures count as originals for all purposes.

9.7 Governing Law. The validity, interpretation, construction and performance of this document shall be governed by the laws of the United States of America.

9.8 Entire Contract. This Contract represents the parties' final and complete understanding of this job and the subject matter discussed in this Contract. This Contract supersedes all other contracts (both written and oral) between the parties.



Acme LLC.

Corporation Corp.
Table of contents

Every company wants an effective way to engage clients and inform them of their relationship with the firm. However, not all forms of communication are ideal. Using an SOW or traditional contract may not be ideal. An accounting engagement letter, on the other hand, can be especially effective if utilized at the beginning of your client engagement.

This article is designed to let you know all you need about these letters. Throughout this article, we will touch upon the following:

  • What these letters consist of
  • The purpose of engagement letters
  • The components of the letter broken down
  • The benefits of engagement letters for accountants
  • How to use your own template
  • Tips and best practices to adopt


Companies use various documents and letters to engage clients, keep them updated on recent developments and attract them. However, an accounting engagement letter might just be one of the most effective options available for your firm.

What Exactly is an Accounting Engagement Letter?

Letters of engagement for your accounting firm are legal documents you can send to your clients and inform them about their relationship with you. It is a clearly defined agreement that depicts the nature of the relationship, such as:

  • The responsibilities to each other
  • The products or services and their delivery
  • Scope of work
  • Payment terms and pricing

Importance of Having a Well-Written Accounting Engagement Letter

A well-drafted letter of engagement can be quite beneficial to a firm. As the name suggests, it can help engage clients while offering other benefits as well. 

  • Reduce Potential Firm Risk: An accounting engagement letter can help remove uncertainties and prevent any potential risks that might harm the firm. In addition, this letter can inform your clients by discussing what is expected of them and what they can expect from you. This makes the relationship far more thorough and mitigates misunderstandings.
  • Reinforce Quality Standards: Clear quality standards encourage people to do business with your firm. A letter of engagement can set the standards of the relationship, as well as provide clients with the assurance that they made the correct choice.
  • Prevent Scope Creep: A business’ scope should be clearly defined and focused. An accounting engagement letter can depict the terms, services, and payment structures in a manner that is consistent and enforces adherence. 

The Purpose of an Accounting Engagement Letter

Letters of engagement are extremely important for accounting firms to ensure that all parties are on the same page. As such, it is imperative to consider what should be included.

What Your Accounting Engagement Letter Should Include

Your letter should include the following sections:

  1. A Brief Introduction -Introduce your company. This will help the clients know whom they’re communicating with.
  2. Company Overview -Talk about your mission, your services, and your customers. Clients deserve to know what business you’re in and what you represent.
  3. Professional Body Requirements -Describe the purpose of the letter and key items. Talk about how disputes should be handled as well. This serves to remove uncertainties.
  4. Pricing and Services -List your services and include their pricing. Providing clearly defined services can assure clients and encourage them to do business with you.
  5. Period of Engagement- Describe the extent of the engagement to mitigate risk.
  6. Payment Terms -Discuss how you will collect your payment and when. Payment plans and accepted forms of payment need to be clearly communicated ahead of time to reduce misunderstandings further down the road.
  7. Unanticipated Services -Explain what will happen when your work exceeds the agreed-upon conditions. This provides further assurance and information and removes uncertainties, especially when faced with untoward events.
  8. Service Terms - Go into detail, providing information about each service you provide. This section needs to make up the bulk of the letter as it contains vital information that the client is likely the most interested in.
  9. Confirmation of Terms -This is where the client signs their name. In addition, this section showcases their acknowledgment and agreement with the outlined terms and conditions.

How an Accounting Engagement Letter Differs from a Scope of Work

An engagement letter and scope of work are highly similar. However, for accounting firms, an accounting engagement letter can be much more appropriate. That is because it includes the contents of the scope of work, as well as additional information wherever relevant.

Key Elements of an Accounting Engagement Letter

Your engagement letter should include the following elements.

  1. Name of the Client - Provide the proper legal name of the client.
  2. Scope of Services - Clearly communicate what you are providing to the clients to reduce an instance of expectation gaps. The information should be provided with sufficient detail to avoid any misunderstanding.
  3. Accounting Firm Responsibilities - Be sure to include the details relevant to the services you’re providing. This will let your firm identify what it needs to do and maintain professional standards.
  4. Client Responsibilities - You should describe what the client is liable to do if they agree to your terms. Clearly defining the following details is essential to a long-term and fruitful relationship.
  • Provision of the requested information and responding to inquiries in a timely way
  • Maintaining internal controls
  • Accepting responsibility for the results of the services rendered
  • Making managerial decisions
  • Providing particular representations when requested


The deliverables should include the work provided, services rendered, and delivered products. Again, there is a need to be specific and thorough in your description to mitigate uncertainties.

  1. Engagement Time - Identify when the services will begin and end. Also, describe any contingencies that are required before the service that may impact the start date. This clarification is essential to be on the same page with clients.
  2. Termination and Withdrawal -While it is not intended, there needs to be a clear policy when it comes to termination and withdrawal. Therefore, this statement in the engagement letter should describe how, when, and in which circumstances the services can be terminated. 
  3. Billing and Fees - You should include a list of billing and payment fees that can clarify the cost of services to the client. This reduces the likelihood of fee disputes and helps the client identify any contingencies.

Benefits of Using an Accounting Engagement Letter Template

A template can help you out a lot when drafting your own engagement letter. You can benefit from their remarkable effectiveness by following the guidelines. However, before you start, it is important to recognize the benefits that are in store for you.

They Reduce Misunderstandings

Perhaps the most notable benefit of letters of engagement is the mitigation of uncertainties. As a result, potential misunderstandings are highlighted and removed before they can harm the quality of the exchange.

They’re Legally Binding Agreements

Since letters of engagement are legally recognized, it is possible to seek damages if one party does not abide by the agreed-upon terms and conditions. In addition, due to legal acknowledgment, potential counter-party risks are reduced.

They Set the Expectations of Clients and the CPA Firm

Engagement letters set the stage for the clients and the firms and provide a reference for expectations. They depict the time, delivery, payment, and other information of services as well as deadlines. This adds up and ensures that both parties know what to expect and prepare accordingly.

How to Use an Accounting Engagement Letter Template

Using an engagement letter properly involves knowing to whom you’re sending the letter and why. A template can help you put your ideas to paper much more easily. They can have specific section headings available for you to put your information in. A template can be a great help to CPAs that are not experienced in sending such letters.

Step-by-Step Instructions on Using Accounting Engagement Letter Templates

You can begin using letter templates by following the steps below:

  1. Find a Suitable Engagement Letter Template - First and foremost, you need to find a specific template that aligns with your client. Many letters of engagement exist, but for accounting purposes, it is imperative that you find one for a relevant business. This will save you time when you begin writing.
  2. Assess Its Relevance to Your Geolocation and Clientele -Letters of engagement differ based on geolocation. Each geographic area has its own regulation, structures, and nuances. As such, it is important that you identify one that pertains to your specific client’s location. If you want a template for the US market, this might be helpful.
  3. Provide Information About Your Specific Services Not Found on the Template -Often, the template would not have all of the information available. Products, services, dates, and regulations can vary from one firm to another. As such, analyze what needs to be changed and what can remain the same. 
  4. Follow Through with Additional Details, Making Changes Where Necessary -You will need to make significant changes regarding the policies regarding engagement periods. You should assess your capacity to provide results and maintain the appropriate engagement period. Underquoting or overpromising is prone to backfire, so be realistic.

Amending the Engagement Letter Template to Suit Your Needs

There is a need to consider how you can amend a template to suit your needs. You can definitely create an engagement letter template from scratch, but doing so would require a lot of time and effort.

Finding a good template and amending it to your needs is much more effective. To properly amend a template, you must clearly define your services, periods, and other policies. Once you have them determined, all that is left is to amend the template accordingly.

Select a template that is relevant to your business and offers similar services. This will reduce the time needed to tweak. Furthermore, if you have more services than the template has space for, simply add them and follow the same procedure for added details as the services before.

Tips for Writing an Effective Accounting Engagement Letter

To ensure proper engagement, take care to follow the best practices of engagement letters.

Best Practices

  • Be specific in terms of details
  • Provide all the information a client might need
  • Inform the client about the proper pricing and time in clear metrics
  • Adhere to proper identification
  • Know your client and your services well
  • Use simple vocabulary, but be professional
  • Proofread the letter
  • Write disclaimers on a separate document
  • Write a different letter for each service
  • Express gratitude at the end

Pitfalls to Avoid

  • Don’t be too brief
  • Don’t dump more information than a reader is likely to read
  • Don’t use a one-size-fits-all philosophy when writing through templates
  • Avoid using abbreviations and superlatives
  • Don’t write the same letter for different industries


In conclusion, it can be stated that letters of engagement play a pivotal role in maintaining a healthy and fruitful relationship. They keep the clients on the same page as the CPAs and encourage communication.

They have a proper format, with certain elements which need to be clearly depicted. As such, using templates can be great for firms that want to focus on efficiency. In addition, templates can provide CPAs to communicate their services, pricing, time periods, and disclaimers effectively.

However, the templates should not be used as is. Instead, they should be amended to suit your business and used with respect to the client in question. This will make the letter more efficient and reduce your chances of falling into pitfalls. A well-written letter can make all the difference between a satisfied client and a dissatisfied one.

Bonsai can help you find relevant accounting engagement letter templates that can boost your business. They are specially designed to prevent scope creep and require minimal amendments to be suitable. Sign up today for a 7-day trial and get more details!

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