Bookkeeping Engagement Letter Template

[Contract Date]

Dear [Client Primary Contact Name],

Thank you for choosing [Company Name] to keep the books for [Client Name]. This letter sets out the services we'll provide, what they don't include, what we need from you, and the terms of our engagement.

1. Our Services

Each month, we will:

• Record and categorize transactions, up to an average of 400 a month across up to 6 bank, card, and loan accounts
• Reconcile each account to its statement
• Close the month and send a profit and loss statement and balance sheet by business day [10]
• Track payroll and sales tax filing deadlines, prepare the filings you approve, and confirm they were made
• Hold a monthly call to review the numbers
• Prepare a year-end package for your tax preparer

2. What These Services Aren't

Our work is bookkeeping and accounting. It isn't an audit, review, or compilation, and we won't express an opinion or any other assurance on your financial statements. It isn't designed to detect fraud, theft, or errors, though we'll tell you about anything unusual we notice. The financial statements we prepare are for your internal use unless we agree otherwise in writing.

3. Your Responsibilities

[Client Name]'s management is responsible for its financial records, its internal controls, and every business and financial decision, including approving the financial statements we prepare. You agree to:

• Send receipts, statements, and answers to our questions by business day 5
• Give us read-only access to your bank, card, loan, and payroll accounts
• Name one person who can approve filings and payments on time
• Tell us about significant changes, such as new accounts, locations, or employees

We won't hold your funds, sign on your accounts, or make payments on your behalf.

4. Fees and Payment

• Onboarding: a one-time fee of $750, due when you sign this letter.
• Monthly fee: $1,950 for the services above, invoiced on the 1st of each month in advance and due within 10 days.
• Additional work: work outside the services above is billed at $150 per hour for staff and $225 per hour for a senior accountant, only with your approval first.
• Volume: if your transactions or accounts stay above the limits above for two months in a row, we'll discuss a change of package with you before any change in fee.

We may pause work while an invoice is more than 30 days overdue.

5. Confidentiality

We'll keep your information confidential and use it only to provide our services. We may use secure accounting software and contractors bound by confidentiality to do the work. We won't disclose your information to anyone else without your consent, unless the law requires it.

6. Records

Your books and records belong to you, and you should keep your original documents. We keep our working papers for [seven] years after our engagement ends.

7. Term and Termination

Our engagement starts on the date above with a three-month term, then continues month to month. After that, either of us may end it with 30 days' written notice. When it ends, we'll complete the close for the last month you've paid for, deliver your books and statements through that month, and help move access to whoever takes over.

8. Limitation of Liability

Our total liability for any claim related to our services is limited to the fees you paid us in the three months before the claim. We aren't responsible for penalties or interest that result from information that's late, incomplete, or inaccurate, or from payments you don't make on time.

9. General

This letter is governed by the laws of [state]. It is our entire agreement about these services, and may only be changed in writing signed by both of us.

If these terms are acceptable, please sign below. We'll begin onboarding once we receive the signed letter and the onboarding fee.

Sincerely,

[Company Name]