Bookkeeping Engagement Letter: What to Include
A bookkeeping engagement letter sets the monthly rules: what you'll do, what the client must send and by when, and what happens when documents are late.
Quick answer: A bookkeeping engagement letter should define the services and accounts covered, the monthly calendar (when documents are due and when reports are delivered), the client's responsibilities for providing statements, receipts and answers, the late-document policy, fees and what triggers a fee change, access and security arrangements, record ownership, and termination terms. The monthly calendar and client responsibilities sections prevent most disputes.
Key takeaways
- List the accounts covered by name. New accounts change scope.
- Put the monthly calendar in writing.
- Make the client's document responsibilities explicit.
- Say what happens when documents are late.
- Clarify that the books and source documents belong to the client.
Sections to include
1. Services
Transaction categorization, reconciliations, payroll entries, AP and AR, reports, meetings. List what's excluded: tax preparation, catch-up work, audits, payroll processing, sales tax filing, unless included.
2. Accounts and volume covered
Name the bank, card, loan and processor accounts, and any transaction limits for the tier.
3. Monthly calendar
Statements and payout reports due by the 5th. Answers to transaction questions due within 2 business days. Monthly reports delivered by the 15th, provided documents are received on time.
4. Client responsibilities
- Providing statements for every account, every month
- Providing receipts according to the agreed policy. See collecting receipts.
- Answering questions within the agreed time. See transaction questions.
- Telling you about new accounts, loans, employees or locations
- Keeping business and personal spending separate
5. Late-document policy
Reports are delivered a set number of days after the last document arrives; repeated late months may incur a fee or move the client to a higher tier.
6. Fees
Monthly fee, what triggers a change (new accounts, volume, entities), and catch-up pricing. See how to price monthly bookkeeping.
7. Access and security
How you'll access software and accounts (user-level, never shared logins), and the one secure channel for documents. See is it safe to email financial documents?
8. Records
The client owns their books and source documents. State how long you retain copies. See retention policy.
9. Termination
Notice period, final month handling, handoff of files and removal of access. See offboarding a client.
Once the letter is signed, the monthly calendar has to actually happen. Correctdocs sends the client one secure link for the month's statements and reports, checks every upload, and follows up automatically until everything is in.
Correctdocs is in early access. The first 10 US accounting, bookkeeping and tax firms get a free 30-day pilot on real client requests. Request early access.
Frequently asked questions
Do bookkeepers need an engagement letter?
It's strongly recommended. It sets scope, deadlines and responsibilities, and is the clearest evidence of what both sides agreed.
Should a bookkeeping engagement letter include deadlines for the client?
Yes. A monthly calendar for documents and answers, and what happens when they're late, prevents most disputes.