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Engaging Clients Using QuickBooks Financial Software for Ongoing Services

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Note: The author is not rendering legal, accounting, or other professional services in this publication. If legal advice or other expert assistance is required, the services of a competent professional should be sought.

Elsewhere, we shared with you a sample engagement letter designed for clients who need QuickBooks set up services. This month, we'll present you with another sample engagement letter: this one is designed for clients who desire ongoing QuickBooks® accounting services instead of set up services.

For clients that you expect to have for years, it's more important than ever to document and agree upon the services and fees that will be exchanged between the two of you. The engagement letter is a business document that will clarify and anchor your relationship with your client, even as the world around you changes.

Two sections of the sample engagement letter need special mention:

What We'll Do. This section describes in detail the services to be performed and should be customized to the client's specific needs. In the sample letter, the client is assumed to require regular monthly bookkeeping, payroll, payroll tax payment, and payroll tax reporting services. Please modify this section to the client's specific needs. If you are using a payroll service, for example, you'll want to mention this in place of the paragraph outlining the payroll services. Be as specific as possible and list in detail what transactions are expected to be recorded by you and what transactions are expected to be recorded by the client.

When We'll Do It. This sentence provides an estimated project schedule. The start date is specified, but the end date is left open. You may want to put in a 30-day notice sentence, meaning that either party may terminate this agreement by giving the other party 30 days notice.

A sample engagement letter specifically written for ongoing QuickBooks accounting services is provided in Word format. Each word or phrase in bold should be replaced with the appropriate phrase that fits the particular client and project that you're writing the letter for. Be sure to further customize the What We'll Do section. The letter should be provided on the accountant's letterhead, signed, and presented to the client for signature.

Since this letter could potentially cover years of service between an accountant and a client, the letter should be reviewed annually, and if necessary, a revised letter should be executed between the two parties. It should be clear to both parties that the new letter supersedes the old letter.

You should always check with your own attorney before creating or signing any business contracts. If you're not a CPA, consider asking your attorney her opinion of engagement letters when starting a relationship with a new client. 

• Sample Engagement Letter — Ongoing Client Services   Word file (17K)