Bookkeeping Letter Of Engagement Template

A Bookkeeping Letter of Engagement is a formal document outlining the specific services a bookkeeper will provide to a client. This agreement serves as a contract between the two parties, ensuring clarity and transparency regarding the scope of work, fees, and responsibilities.

Key Elements of a Bookkeeping Letter of Engagement

1. Client Information

Full legal name of the client

Business address

Contact information (phone number, email address)

2. Bookkeeper Information

Full legal name of the bookkeeper or firm

Business address

Contact information

3. Scope of Services

Detailed description of the bookkeeping services to be provided, including:

Transaction recording

Bank and credit Card reconciliation

Accounts receivable and payable management

Payroll processing

Financial Reporting (e.g., income statements, balance sheets)

Tax return preparation (if applicable)

Other specific tasks as agreed upon

4. Client Responsibilities

Outline the client’s obligations, such as:

Providing timely and accurate financial documentation

Granting access to necessary records and systems

Reviewing and approving financial reports

Notifying the bookkeeper of any changes in business structure or operations

5. Fees and Payment Terms

Clearly state the fee structure, including:

Hourly rate

Flat fee

Retainer fee

Payment terms (e.g., monthly, quarterly, annually)

Late payment penalties (if applicable)

6. Confidentiality and Data Security

Address the bookkeeper’s commitment to maintaining client confidentiality and protecting sensitive financial information.

Outline the measures taken to ensure data security, such as:

Encryption

Access controls

Regular backups

7. Term and Termination

Specify the duration of the agreement (e.g., indefinite, with a notice period)

Outline the conditions under which either party may terminate the agreement

8. Governing Law and Dispute Resolution

Indicate the governing law that will apply to the agreement

Specify the dispute resolution process (e.g., mediation, arbitration)

Design Considerations for a Professional Bookkeeping Letter of Engagement

Layout and Formatting: Use a clean and professional layout with consistent fonts, spacing, and margins.

Headings and Subheadings: Use clear and concise headings and subheadings to organize the content and improve readability.

Professional Language: Use formal and professional language throughout the document, avoiding jargon or overly technical terms.

Clarity and Conciseness: Ensure that the language is clear, concise, and easy to understand.

Consistency: Maintain consistency in formatting, terminology, and style throughout the document.

Branding: If applicable, incorporate your business branding elements (e.g., logo, color scheme) into the design.

Example of a Bookkeeping Letter of Engagement

[Your Bookkeeper’s Name or Firm]
[Your Address]
[Your Contact Information]

[Date]

[Client’s Name]
[Client’s Business Name]
[Client’s Address]

Re: Bookkeeping Engagement

Dear [Client’s Name],

This letter serves as a formal agreement outlining the bookkeeping services that [Your Bookkeeper’s Name or Firm] will provide to [Client’s Business Name].

Scope of Services

[Detailed description of the bookkeeping services to be provided, including transaction recording, bank reconciliation, accounts receivable and payable management, payroll processing, financial reporting, and tax return preparation (if applicable).]

Client Responsibilities

[Outline the client’s obligations, such as providing timely and accurate financial documentation, granting access to necessary records and systems, reviewing and approving financial reports, and notifying the bookkeeper of any changes in business structure or operations.]

Fees and Payment Terms

[Clearly state the fee structure, including hourly rate, flat fee, retainer fee, payment terms, and late payment penalties (if applicable).]

Confidentiality and Data Security

[Address the bookkeeper’s commitment to maintaining client confidentiality and protecting sensitive financial information. Outline the measures taken to ensure data security, such as encryption, access controls, and regular backups.]

Term and Termination

[Specify the duration of the agreement and the conditions under which either party may terminate the agreement.]

Governing Law and Dispute Resolution

[Indicate the governing law and specify the dispute resolution process.]

This agreement constitutes the entire understanding between the parties and supersedes all prior or contemporaneous communications, representations, or agreements, whether oral or written.

Please sign and return a copy of this agreement to [Your Bookkeeper’s Name or Firm] to indicate your acceptance.

Sincerely,

[Your Signature]
[Your Name]
[Your Title]

[Your Bookkeeper’s Name or Firm]