A bookkeeping engagement letter does one thing a handshake can’t: it fixes the scope, the fee, and each side’s responsibilities in writing before the first transaction is coded. An engagement letter is what you point to when the client asks why payroll isn’t included, or why the fee went up after their volume doubled.
The sample letter below is built for monthly recurring bookkeeping: a fixed fee tied to a transaction cap, monthly reports, and an ongoing term with a clean exit. It’s the bookkeeping-specific version of our general engagement letter template, so every bracket maps to a decision you’ve already made in pricing the work.
The bookkeeping engagement letter template
[Your firm letterhead]
[Date]
[Client name] [Client address]
Re: Engagement letter for bookkeeping services
Dear [Client name],
Thank you for engaging [Your Firm Name] to provide bookkeeping services to [Client / entity name]. This letter sets out the scope of our engagement, our fees, and what we each take responsibility for. Please read it carefully and sign below to confirm your agreement.
Scope of Services. Beginning [start date], we will provide the following services each month:
- Categorisation and reconciliation of bank and credit card transactions, up to [X] transactions per month
- Monthly bank reconciliation of each nominated account
- Accounts payable and accounts receivable management
- Monthly financial reports: a profit and loss statement and balance sheet, delivered by the [15th] of the following month
- [Preparation of your [sales tax / BAS / VAT / GST] returns. Delete this line if not applicable.]
Services Not Included. This engagement does not include payroll processing, tax return preparation, budgeting or forecasting, advisory services, or any audit or assurance of your financial records. If you need any of these, we are happy to quote them separately under a further engagement letter.
Fees. Our fee is a fixed monthly fee of $[amount], invoiced [on the first business day of each month] and payable within [14] days. If your transaction volume exceeds [X] transactions in any month, we will bill the additional transactions at $[rate] per [50] transactions. We review our fees [annually] and will give you at least [30] days written notice of any change.
Your Responsibilities. Accurate books depend on complete, timely information. You agree to: provide us with access to [accounting software] within [7] days of signing this letter; keep your bank and credit card feeds connected; respond to our queries within [5] business days; and provide receipts or other supporting documents when we request them. Delays in providing information may delay your monthly reports.
Term and Termination. This is an ongoing engagement that continues until either party ends it by giving [30] days written notice. Fees remain payable for all work performed up to the effective date of termination.
Confidentiality. We will keep your information confidential and will not disclose it to any third party except as required by law or with your written consent.
Limitation of Liability. Our total liability arising from this engagement is limited to the total fees you have paid us in the [12] months preceding the claim. We are not liable for any loss arising from inaccurate or incomplete information provided by you or on your behalf.
Acceptance. If these terms reflect your understanding of the engagement, please sign and return a copy of this letter.
Signed for [Your Firm Name]:
Signature: ______________________ Name: [Name], [Title] Date: [Date]
Agreed and accepted for [Client / entity name]:
Signature: ______________________ Name: [Name], [Title] Date: [Date]
What to include in a bookkeeping engagement letter
Whether you draft your own or adapt a sample bookkeeping engagement letter, make sure it covers:
- The named parties and the start date of the engagement
- Scope of services, with a transaction volume cap so the fee has a boundary
- Explicit exclusions: payroll, tax returns, forecasting, advisory, audit
- The fixed monthly fee, billing cadence, and how overages are charged
- Client responsibilities, including software access and response times
- The notice period either side must give to end the engagement
- Confidentiality and a limitation of liability clause
- Signature blocks for both parties
How to use this template
Replace everything in [brackets], set the transaction cap and overage rate to match how you price, and delete the [sales tax / BAS / VAT / GST] line if you don’t file for the client. If the work started as a quote, convert the accepted bookkeeping proposal into this letter so the signed terms match exactly what the client agreed to. Then have the final letter reviewed under your professional standards; many professional bodies require or strongly recommend a signed engagement letter before work begins.
Or answer a few questions in the engagement letter generator and it assembles the letter for your region, services, and fee structure.
Send bookkeeping engagement letters in Tidyflow
In Tidyflow, proposals and engagement letters live in one flow: build the letter from your accepted proposal, send it for electronic signature, and get it back with a timestamped audit trail. The signed letter sits on the client’s file next to their recurring bookkeeping job, so the agreed scope and the actual work never drift apart.