Finance & Operations

Free Bookkeeping Engagement Letter Template (PDF)

An engagement letter is the document a bookkeeper or tax preparer sends a new client before starting work — it states exactly what services are covered, what isn't, the fee, and the engagement period, so both sides start from the same expectations.

When to use it

Use this to open any new bookkeeping or tax-preparation client relationship — a monthly bookkeeping client, a one-time tax return, or a seasonal engagement that renews each year. It's the standard convention accountants and preparers use instead of a generic services agreement, partly because it includes the "no assurance/audit" scope language clients and preparers both expect to see.

What's typically included

• Services covered (and what's excluded)
• Engagement period (ongoing or seasonal)
• Client responsibilities
• Fees and payment
• No-assurance / scope-limitation language
• Term and termination
• Confidentiality
• Governing law

How to fill it in

• List services specifically (which reconciliations, which statements, which returns) and name a couple of things that are explicitly out of scope — most engagement-letter disputes trace back to a client assuming something was included that never was.
• Set the engagement period to match how the work actually works: ongoing month-to-month for bookkeeping, or a defined tax season/filing period for return preparation — don't leave it open-ended if the relationship is genuinely seasonal.
• Fill in the fee as a real number and billing cadence, not "TBD" — a client who has already seen a specific number is far more likely to sign without a follow-up call.

This template is a general starting point, not legal advice — customize it and have it reviewed for your situation.

Frequently asked questions

How is an engagement letter different from a services agreement?

They're both contracts, but an engagement letter is the specific convention accounting and tax professionals use — it includes scope-limitation language (no audit, no assurance opinion) that a generic services agreement doesn't, and it's written to be renewed each engagement period rather than run indefinitely.

Do I need a new engagement letter every year?

For a seasonal tax-prep relationship, yes — a fresh letter each filing period keeps scope and fees current. For ongoing monthly bookkeeping, this template is written as continuing until either side ends it, so it doesn't need to be re-signed annually unless the scope or fee changes.

Is an electronically signed engagement letter legally binding?

Yes, under the U.S. ESIGN Act and state UETA laws, an electronic signature on an engagement letter is just as binding as one on paper.