A project letter does not govern a retainer relationship.
A tax return engagement has a natural endpoint. A bookkeeping engagement does not. That changes what the letter needs to cover.
The scope has to define what you deliver each month and what you do not. It needs to address what happens when the client is late delivering documents. It needs a termination clause that gives both parties a defined exit with adequate notice, not just “either party may terminate.”
Most engagement letter templates were written for project-based work. Applied to a monthly retainer, they leave the terms of the ongoing relationship undefined.
What a bookkeeping engagement letter should cover.
Scope of services
Specify what you deliver: transaction categorization, bank and credit card reconciliation, monthly financial statements. State what is not included: tax return preparation, payroll processing, accounts payable management, financial advisory services. If additional work falls outside this scope, define how it is billed.
Document delivery requirements
The client is responsible for providing bank statements, receipts, and supporting documentation by a defined cutoff each month. A missed cutoff delays your deliverables. The letter should say that explicitly and put the responsibility where it belongs.
Fee and billing terms
Monthly retainer amount, billing date, and what happens when payment lapses. Most practitioners pause services after 15 days past due. That threshold belongs in the letter.
Term and termination
This engagement continues month to month until either party gives written notice. Specify the notice period. State what work is owed through the termination date. An open-ended retainer with no defined exit is a liability for both parties.
Limitation of liability
You are categorizing and reconciling the information the client provides. You are not auditing it. The letter should state that your work relies on the accuracy of client-provided records and that errors in the underlying data are the client’s responsibility.
Generate the letter in minutes.
Enter the client name, entity type, monthly fee, and payment terms. Use the scope notes field for anything non-standard: additional services, specific exclusions, or unusual client circumstances. EngageDraft generates a letter that covers the sections above, designed around AICPA guidelines for bookkeeping engagements.
Review the output. Edit anything that needs adjusting. Send for e-signature. Your client signs from their device. The signed record is stored in your dashboard.
Sample Bookkeeping Engagement Letter
This is a complete engagement letter generated by EngageDraft for a monthly bookkeeping engagement. Firm, preparer, and client names below are placeholders; the scope, terms, and structure match real output for this engagement type.
Dear Avery Quinn,
This letter confirms the agreement between Avery Quinn and Cedarline Bookkeeping for professional bookkeeping services provided on an ongoing monthly basis. The purpose of this letter is to establish a mutual understanding of the scope of services, responsibilities, fees, and terms that will govern this engagement. The services covered under this agreement are as follows:
Bookkeeping Services
Monthly deliverables will be provided to you electronically for your review.
Scope of Services
Bookkeeping Services
Cedarline Bookkeeping will provide monthly transaction categorization, bank and credit card reconciliation, and preparation of profit and loss statements and balance sheets. These services are designed to maintain accurate and up-to-date financial records based on the information and account access you provide. The following are explicitly excluded from this engagement unless covered under a separate agreement:
- Tax preparation of any kind
- Payroll processing or payroll tax filings
- Accounts payable management
- CFO advisory or strategic financial consulting
Client Responsibilities
You are responsible for providing complete, accurate, and timely information and documents necessary for us to perform the services described in this letter. You agree to provide bank statements, credit card statements, and supporting documentation for each month by the tenth day of the following month. Delays in providing records may delay the delivery of that month’s financial statements. Riley Marsh, CPA will rely on the information you provide without independently auditing, verifying, or confirming its accuracy. By entering into this agreement, you accept full responsibility for the accuracy and completeness of all information supplied to this firm.
Regarding positions taken in connection with any tax-related matters that may arise during this engagement, if you request a position that does not meet the standard of having substantial authority under IRC §6662, Riley Marsh, CPA will advise you of that fact. This firm will not recommend a position that lacks a reasonable basis and will not prepare any work product that reflects a position you have been advised is improper.
Fees and Payment
The agreed fee for the services described in this letter is $300 per month, billed on the first of each month. This fee is not contingent on the outcome or results of the engagement. If your account becomes past due, work on your engagement may be paused until the balance is brought current. Please contact us promptly if you have any questions or concerns regarding your account.
Confidentiality
All information you share with Cedarline Bookkeeping in connection with this engagement will be kept strictly confidential in accordance with IRC §7216, applicable state law, and applicable professional standards. Your information will not be disclosed to any third party without your consent, except as required by law or professional standards. This confidentiality commitment extends to any data that is stored or processed through third-party technology platforms used in the delivery of services to you.
Limitation of Liability
The liability of Cedarline Bookkeeping and Riley Marsh, CPA to you for any cause of action arising out of or related to this engagement is limited to the total fees paid by you for the specific services giving rise to the claim. This firm is not liable for any consequential, indirect, or punitive damages of any kind. This limitation applies regardless of the form of the action brought.
This limitation of liability paragraph is an optional, static addition available in EngageDraft. It is not generated by AI. Drafted from common industry practice, not attorney-reviewed. Confirm with your own counsel before use.
Dispute Resolution
Any dispute arising out of or related to this engagement must first be submitted to mediation before either party may initiate litigation. Mediation will be conducted in the jurisdiction of Cedarline Bookkeeping under the rules of a mutually agreed upon mediator. Both parties agree to participate in the mediation process in good faith before pursuing any other legal remedy.
Termination
Either party may terminate this engagement upon thirty days’ written notice to the other party. Fees for all work completed up to the date of termination will be due and payable upon termination. Upon receipt of payment for completed work, this firm will return any documents you provided during the engagement. Cedarline Bookkeeping will retain all engagement documentation for a period of seven years following the termination or completion of this engagement.
Agreement and Acknowledgment
By signing this letter, you confirm that you have had the opportunity to read and review its terms, ask any questions you may have, and that you agree to be bound by the terms and conditions set forth herein. Your signature indicates your acceptance of this engagement letter as the governing agreement between you and Cedarline Bookkeeping for the services described above.
Bookkeeping Engagement Letter FAQs
Where can I find a bookkeeping engagement letter sample?
There is a complete one on this page. The sample above was generated by EngageDraft for a monthly bookkeeping engagement, with firm and client names replaced by placeholders. It shows what the scope, document delivery, fee, termination, and liability sections look like in a real letter rather than a checklist.
What should a sample bookkeeping engagement letter include?
It should show the sections that govern an ongoing relationship: the monthly deliverables and what is excluded, the date client records are due each month, the retainer amount and what happens when payment lapses, a month-to-month term with a notice period, and a limitation of liability that reflects reliance on client-provided records. A sample that only covers scope and fees is showing you a project letter with the word bookkeeping added.
Does a bookkeeping engagement letter template work for every client?
Rarely for long. Clients differ in which services they need, when their records arrive, and how they pay, so a static template needs manual editing for almost every engagement, and every edit is a chance to miss something. The more durable approach is generating the letter per client from the details of that engagement, which is what EngageDraft does.
What does a bookkeeping engagement letter example look like?
A typical letter runs one to two pages, addressed to the client, and walks through scope, client responsibilities, fees, confidentiality, termination, and a signature block. The example on this page shows the full structure for a monthly engagement. The distinguishing feature of a bookkeeping letter is that its terms describe a recurring cycle rather than a single deliverable.
Is a bookkeeping letter of engagement the same as an engagement letter?
Yes. A bookkeeping letter of engagement and a bookkeeping engagement letter are the same document, the first phrasing is simply more common in the UK, Canada, and Australia. Both refer to the signed agreement that defines scope, fees, and responsibilities before the work begins.