An accounting engagement letter reduces ambiguity before work begins. It should clearly state what the firm will do, what the client must provide, how fees work, and what happens when scope, timing or information changes. This is a practical starting framework—not legal advice. Have counsel review language for your jurisdiction and service type.
Accounting engagement letter template
[Date]
[Client Name]
[Client Address]
Dear [Client Contact],
Thank you for engaging [Firm Name] to provide [services] for [entity/entities] for the period beginning [date]. This letter describes the scope of our services and the responsibilities of both parties.
Scope of services
We will provide the following services: [list services and deliverables]. Services not specifically listed are outside the scope of this engagement unless added in writing.
Client responsibilities
You are responsible for providing complete, accurate and timely records, access, approvals and representations needed for us to perform the services. Delays or incomplete information may affect delivery dates and fees.
Timing and communication
Our target cadence and deadlines are: [dates/cadence]. Primary contacts are [names/roles].
Fees and billing
Fees will be [fixed/monthly/hourly/value-based] at [amount/rate], billed [cadence]. Work outside scope may require a revised fee or separate written approval.
Data and access
You authorize access to the systems and information reasonably required to perform the engagement and agree to use approved secure channels for sensitive information.
Limitations
Our services are limited to the scope stated above and are not an audit, review, legal service, investment advice or other assurance service unless expressly stated.
Term and termination
This engagement begins [date] and continues until [date/terminated]. Either party may terminate under the conditions described here: [terms].
Acceptance
Please sign below to confirm your agreement with these terms.
Sincerely,
[Firm]
Accepted by: __________________ Date: __________
Clauses to tailor by service
- Deliverables and service frequency
- Client deadlines and consequences of missing information
- Change-order or scope-creep process
- Payment terms and automatic payment authorization
- Record retention and portal/document handling
- Third-party software access
- Reliance on client-provided data
- Tax, bookkeeping, advisory or attest-specific limitations
- Termination and transition obligations
Once the letter is signed, trigger the Accounting Client Onboarding Checklist so contractual scope becomes operational tasks. For recurring fee changes, use the Accounting Rate Increase Letter Template rather than letting pricing drift informally.
Ready to take the next step? The strongest engagement letter is one your operating system can execute. PracticeERP helps firms connect client scope, work, time, billing and reporting after the agreement is signed.