Sample Engagement Letter for Accounting Services

How to Write an Engagement Letter for Accounting Services (With Free Samples)

According to the accounting professional liability insurance, a bookkeeper or an accountant should have a signed engagement letter that will be drafted and sent to all the clients they will be working with. This letter would outline the scope of work that the accountant needs to provide for the client. Even the timeline for the services and the compensations would be spelled out as well. So the accountant needs to document all this information in a letter which is the engagement letter.

So engagement letter for accounting services is a simple agreement that is drafted by the provider of accounting services to state the pay for the services that would be offered as well as the scope of work. The whole essence of this letter to an accountant is so that it can be used to file taxes for the individual or business unit. Again, the engagement letter will protect both parties (the hirer and the accountant) as it will be mandated that both parties keep to the agreement that was contracted initially.

To write a perfect engagement letter for accounting services, the below guideline must be followed. You need to have these points listed below in your letter:

Identify the parties

You need to start your letter with identification of parties, this is for you to state the person you are working with being an individual or a company

State the scope of work

For everyone to be on the same page and avoid future complaints the services to be offered should be clearly stated. If it will be account receivables, budgeting, auditing, etc. this will help in assessing the service offered if it is following the initial agreement. This is like the most crucial part of the letter

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State the period for the service

This will explain clearly the duration of the engagement, will it be ongoing work or for a period. Even the ongoing engagement needs to be explained better. This is to eliminate all kinds of confusion in the future. You would need to also state what would happen if there’s any defaulting.

Outline the charges

This is another aspect that must be well explained in the letter. The payment should be well-defined. Would it be hourly, weekly or monthly payment? Everything that the two parties need to talk about payment should be spelled not before the commencement of service

Client responsibilities

The responsibilities of the client need to be stated, that that the hirer knows what is expected of him. the exact information that will be needed needs to be documented

Confirms the agreement

This will be at the concluding part of your engagement letter, let the client’s shows that the agreement has been understood and is binding by confirming the agreement.

An engagement letter for accounting services is a formal letter and as such it must have a professional tone. It shouldn’t be excessively long to avoid including unnecessary details. You just have to only include the details that are important and related to the work to be covered

Below are samples of accounting service engagement letters

                                             ACCOUNTING ENGAGEMENT LETTER

Leonard Banks

Houston, Texas

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Dear Banks,

This letter will confirm the limitations and agreement of the accounting services our company Philips accounting firm has agreed to offer for you for the year ending December 2021.

We will prepare your balance sheet as of Dec 31st, 2021, and the related statements of your deficit, income, and cash retained in the coming year. This will be for the aim of expressing a view on them.

The financial statements are solely for the management of the company. This comes with the responsibility of maintaining and establishing effective internal control over financial reporting, selecting the right accounting principles, complying with the relevant laws as well as maintain proper accounting records. You are also responsible for making all accounting records available to the accounting team.

My responsibility is to express my views on your financial statements and therefore the period agreed upon. If there will be any hindrances this will be discussed with you in advance. I will examine your accounts and show evidence of all financial flaws. I will also assess the accounting principles in use and evaluate the entire financial statement of your business

My procedures will entail getting an understanding of your firm’s internal control, then test the controls to a believable extent. The testing will be done on physical inventories, direct confirmation of receivables, and some certain liabilities and assets. After our services, we will ask for specific representations from your firm about our services and other related matter.

Sample letter 2

Accountant engagement letter

Betty and Edwards accounting outfit

564 Mayflower drive

Maryland, USA

RE: Letter of engagement for accounting services

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Dear Mildred,

we, Mildred and Betty and Edwards accounting outfit, the accounting engagement letter confirms the services of Betty and Edwards accounting outfit Requested by Mildred on the date of 1st August 2021

Whereas the Betty and Edwards accounting outfit and Mildred agree to the following terms and conditions for the accountant’s services as an independent contractor to receive fees for the services

The services Betty and Edwards accounting outfit agrees to offer to include the following: customized reports, account payable, general bookkeeping, tax calculation, and financial statements.

The above-stated services are the services that will be provided by Betty and Edwards accounting outfit. It shall be to the guidelines and specifications that are stated by the client. Betty and Edwards accounting outfit will at all times not only comply but practice all the standards of it. And it will be abiding by the state and federal laws procedures and regulations as all services will comply with the agreement in this letter.

The clients have agreed to pay Betty and Edwards accounting outfit $50 per hour for the services while $900 is the total amount as the entire amount service period


To be on the safe side when an accountant or bookkeeper is contacted for any financial service, they must draft an engagement letter for their clients. This is important so that both parties can keep to the contract as stated in the engagement letter.

If you need to write an engagement letter for your accounting service to a client, you can get it right by customizing the above samples to fit your original details.


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