An engagement letter is the contract between your firm and a client that defines scope, fees, responsibilities, and terms. For bookkeeping and accounting firms, it's not optional paperwork — it's the document that prevents scope creep, sets expectations, and protects you if a relationship sours.
Why engagement letters matter
- They define scope, so "can you just also…" requests are a change order, not an assumption.
- They set fees and billing terms in writing.
- They clarify who's responsible for what — including the client's duty to provide records.
- They provide legal protection and professional-standards compliance.
What to include
- Scope of services — exactly what you will and won't do.
- Fees, billing frequency, and payment terms.
- Client responsibilities and deadlines for providing records.
- Term, renewal, and termination conditions.
- Limitations of liability and dispute resolution.
The friction problem
Most firms know they need engagement letters but hate the workflow: draft, email a PDF, wait for a printed signature, chase the client, then separately set up billing. That friction is why letters get skipped — and skipped letters are how scope creep and unpaid work happen.
Automating it end to end
LedgerHelm builds engagement letters into the firm workflow: draft from a template, send a secure link, capture an e-signature, and auto-start billing the moment the client accepts. No PDFs, no printing, no separate billing setup — acceptance and billing are one step.
Best practices
- Send an engagement letter before any work begins — every time.
- Re-issue when scope changes rather than absorbing new work silently.
- Use e-signature to remove the printing/scanning delay.
- Tie billing to acceptance so you're never doing unpaid onboarding.