"Bookkeeping Engagement Letter Template"

What Is a Bookkeeping Engagement Letter?

A Bookkeeping Engagement Letter is a document that can be used to outline the terms and conditions of bookkeeping services that can be provided by a specific company to their client. The purpose of the document is to establish an agreement between the involved parties that will regulate the relationship between them.

Generally, an engagement letter for bookkeeping Services contains information about the amount of work the company is willing to provide, what exact kinds of services they carry out, how long it will take, and how much the services will cost to the client. After the company has completed the letter, they can submit it to the client. If the agreement is reached and the client has signed the letter, the company can start providing its services. A Bookkeeping Engagement Letter template can be found through the link below.

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How to Write a Bookkeeping Engagement Letter?

Usually, an engagement letter for bookkeeping services contains several parts, such as:

  1. Introduction. In the first part of the document, the sender should state the name and address of their client and introduce themselves. They can indicate the name and the location of the company on behalf of which they are writing, and the name of the authorized representative who is responsible for the communication with the client.
  2. Description of Services and Fees. Senders can use this part of the letter to depict the services they can provide to the client and how much those services will cost. They can designate the total cost of services, as well as the fee for each service separately. If there are any additional services where the cost is not included in the total price, it should be stated as well.
  3. Terms of Services. This part of the document can contain a description of how the services will be provided. The sender can include different details in it, such as which services are excluded, if there are any responsibilities that the client needs to fulfill, will the company work in accordance with certain rules or standards, etc.
  4. Engagement Period. In this section, the sender should inform the client how long it will take for them to provide the particular services.
  5. Client's Confirmation. The sender can request the client to provide a written confirmation that they acknowledge everything written in the document and agree on the estimated terms and conditions. The statement must be verified with the client's signature.
  6. Signature. To state that everything written in the document is true and correct, the sender can sign the document.

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Bookkeeping Engagement Letter
To: ​ _ ____________________________
From:​ ___________________________
Sender’s Name
Recipient’s Name
_________________________________
_________________________________
_________________________________
_________________________________
Sender’s Address
Recipient’s Address
_________________________________
_________________________________
City, State, ZIP Code
City, State, ZIP Code
_________________________________
D ate
Re: ______________________________
Dear​
_ ____________________________,
The purpose of this letter is to confirm the terms of our engagement. We would like to
specify the terms and clarify the services we are going to provide to you.
1. The Parties. ​ T his Bookkeeping Engagement Letter (hereinafter referred to as
“Letter”) confirms the services of ______________________ (hereinafter
referred to as “Bookkeeper”) requested by ______________________
(hereinafter referred to as “Client”) on this date of ______________________.
Whereas, the Client and Bookkeeper (hereinafter referred to as “Parties”) agree
to the following terms and conditions for the Bookkeeper’s services, as an
independent contractor, in exchange for fees.
2. Services. ​ T he Bookkeeper agrees to provide the following services:
(check all that apply)
❏ Accounts payable;
❏ Accounts receivable;
❏ Audit;
❏ Bank reconciliation;
❏ Bill payment;
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Bookkeeping Engagement Letter
To: ​ _ ____________________________
From:​ ___________________________
Sender’s Name
Recipient’s Name
_________________________________
_________________________________
_________________________________
_________________________________
Sender’s Address
Recipient’s Address
_________________________________
_________________________________
City, State, ZIP Code
City, State, ZIP Code
_________________________________
D ate
Re: ______________________________
Dear​
_ ____________________________,
The purpose of this letter is to confirm the terms of our engagement. We would like to
specify the terms and clarify the services we are going to provide to you.
1. The Parties. ​ T his Bookkeeping Engagement Letter (hereinafter referred to as
“Letter”) confirms the services of ______________________ (hereinafter
referred to as “Bookkeeper”) requested by ______________________
(hereinafter referred to as “Client”) on this date of ______________________.
Whereas, the Client and Bookkeeper (hereinafter referred to as “Parties”) agree
to the following terms and conditions for the Bookkeeper’s services, as an
independent contractor, in exchange for fees.
2. Services. ​ T he Bookkeeper agrees to provide the following services:
(check all that apply)
❏ Accounts payable;
❏ Accounts receivable;
❏ Audit;
❏ Bank reconciliation;
❏ Bill payment;
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❏ Budget preparation;
❏ Customized reports;
❏ Detailed general ledgers;
❏ Financial statements;
❏ General bookkeeping;
❏ Payroll and check registers;
❏ Tax calculation and filing;
❏ Other: ____________________________________________________.
The aforementioned selections shall be referred to as the “Services.” The
Bookkeeper shall conduct the Services within the specifications and guidelines
set by the Client. The Bookkeeper shall, at all times, observe and comply with
generally accepted bookkeeping and accounting practices and standards while
complying with all Federal and State laws, regulations, and procedures when
completing their Services in accordance with this Letter.
3. Fees. ​ T he Client agrees to pay the Bookkeeper:
(check all that apply)
❏ Per Hour. $______________/hour for providing the Services.
❏ Fixed Amount. $______________ as the total amount for the Services.
❏ Other: ____________________________________________________.
4. Payment. ​ T he Client shall pay the Bookkeeper:
(check all that apply)
❏ Recurring Payment. Paid _____________________________________.
Weekly/Bi-Weekly/Monthly/Quarterly/Yearly
❏ Upon Completion. Upon completion of the Services to the Client.
❏ Other: ____________________________________________________.
5. Expenses. ​ T he Client shall:
(check all that apply)
❏ Pay Expenses. In addition to the Fees provided in Section 3, the Client
agrees to reimburse the Bookkeeper for any out-of-pocket expenses
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incurred that include, but are not limited to, travel expenses, audit fees,
tax fees, and postage.
❏ Not Pay Expenses. All expenses, including, but not limited to, travel
expenses, audit fees, tax fees, and postage shall be the responsibility of
the Bookkeeper.
6. Retainer. ​ T he Client shall:
(check all that apply)
❏ Pay a Retainer. In the amount of $______________ that shall act as an
advanced payment on the Services provided by the Bookkeeper.
❏ Not Pay a Retainer.
7. Term. ​ T he Term of this Letter shall be:
(check all that apply)
❏ Fixed Time-Period. Starting ____________, and ending ____________.
❏ Ongoing Period. The arrangement of the Services provided by the
Bookkeeper shall be on-going beginning on ____________.
❏ Other: ____________________________________________________.
8. Termination.​ This Letter may be:
(check all that apply)
❏ Terminated by Both Parties. By providing the other party at least ____
days’ written notice.
❏ Terminated by Client ​ O nly​ . By providing the Bookkeeper ____ days’
written notice.
❏ Terminated by Bookkeeper ​ O nly​ . By providing the Client ____ days’
written notice.
Unless the Bookkeeper has not performed the Services in accordance with this
Letter, the Client shall pay the Bookkeeper, in-full, for any remaining balance
owed following the termination of Services.
9. Client’s Obligations. The Client shall be solely responsible for providing the
Bookkeeper all financial information related to their personal and/or business
affairs including, but not limited to, all materials, data, and documents
necessary to perform the Services under this Letter. The Client acknowledges
and agrees that the accuracy of financial information supplied to the
Bookkeeper is the sole responsibility of the Client and the Bookkeeper shall be
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held harmless from any liability resulting from the accuracy of the financial
information provided.
10. Employment Status. The Parties agree that the Bookkeeper shall provide the
Services to the Client as an independent contractor and shall not be acting or
determined to be an employee, agent, or broker. As an independent contractor,
the Bookkeeper shall be required to follow all requirements in accordance with
the Internal Revenue Code which includes, and is not limited to, payment of all
taxes levied for fees collected by the Client for payment of their employees,
agents, brokers, and subcontractors. The Bookkeeper understands that the
Client shall in no way withhold any amounts for payment of any taxes from the
Bookkeeper’s accumulated fees for Services.
11. Confidentiality. The Bookkeeper, shall in the course of performing the
Services hereunder, may gain access to certain confidential or proprietary
information of the Client. Such “Confidential Information” shall include all
information concerning the business, affairs, products, marketing, systems,
technology, customers, end-users, financial affairs, accounting, statistical data,
documents, discussion, or other information developed by the Bookkeeper
hereunder and any other proprietary and trade secret information of the Client
whether in oral, graphic, electronic or machine-readable form. The Bookkeeper
agrees to hold all such Confidential Information of the Client in strict
confidence and shall not, without the express prior written permission of the
client, disclose such Confidential Information to third (3rd) parties or use such
Confidential Information for any purposes whatsoever, other than the
performance of its obligations hereunder. The obligations under this section
shall survive the termination or expiration of this Letter.
12. Assignment. ​ T he Bookkeeper shall have no rights to assign any of their rights
under this Letter or delegate the performance of any of the obligations or duties
hereunder, without the prior written consent of the Client. Any attempt by the
Bookkeeper to assign, transfer, or subcontract any rights, duties, or obligations
arising hereunder shall be void and of no effect.
13. Notices. Any notices, bills, invoices, or reports required by this Letter shall be
deemed received on the day of delivery if delivered by hand, standard mail,
email, or facsimile during the receiving party’s regular business hours.
14. Governing Law. ​ T his Letter shall be construed in accordance with and
governed by Federal laws and those located in ________________.
State
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15. Dispute Resolution. ​ A ll disputes under this Letter shall be settled by
arbitration in the State of governing law before a single arbitrator pursuant to
the commercial law rules of the American Arbitrator Association. Arbitration
may be commenced at any time by any party hereto giving written notice to the
other party to a dispute that such dispute has been referred to arbitration.
Any award rendered by the arbitrator shall be conclusive and binding upon the
parties hereto.
This provision for arbitration shall be specifically enforceable by the parties
and the decision of the arbitrator in accordance herewith shall be final and
binding without right of appeal.
16. Severability. If any provision of this Letter shall be held to be illegal, invalid
or unenforceable under present or future laws, such provisions shall be
severable, this Letter shall be construed and enforced as if such illegal, invalid
or unenforceable provision had never comprised a part of this Letter; and, the
remaining provisions of this Letter shall remain in full force and effect.
17. Limitation of Liability. ​ I n no event shall either party be liable to the other
party for any indirect, incidental, consequential, special or exemplary damages,
including without limitation, business interruption, loss of or unauthorized
access to information, damages for loss of profits, incurred by the other party
arising out of the services provided under this Letter, even if such party has
been advised of the possibility of such damages. In no event will neither party’s
liability on any claim, loss or liability arising out of or connected with this
Letter shall exceed the amounts paid to the Bookkeeper during the period
immediately preceding the event giving rise to such claim or action by the
Client or the limits of the Bookkeeper’s professional liability policy, whichever
is greater of the errors and omissions policy that is in place.
18. Indemnification. ​ E ach party shall at its own expense indemnify and hold
harmless, and at the other party’s request defend such party affiliates,
subsidiaries, and assigns its respective officers, directors, employees,
sublicensees, and agents from and against any and all claims, losses, liabilities,
damages, demand, settlements, loss, expenses, and costs, including attorneys’
fees and court costs, which arise directly or indirectly out of or related to any
breach of this Letter or the gross negligence or willful misconduct of a party’s
employees or agents.
19. Entire Letter. This Letter is the final, complete, and exclusive agreement of
the parties with respect to the subject matter hereof and supersedes and merges
all prior or contemporaneous representations, discussions, proposals,
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