What is a Bookkeeping Engagement Letter?

So you’ve decided to hire someone to do your bookkeeping.  How does it work and how do you know what you’re paying for? 

A good bookkeeper will provide you with a bookkeeping engagement letter.  This is a document, essentially a simplified contract that details what work will be done, the schedule, the rates and what is needed from you. This protects both you, the client, and the bookkeeper.  It makes it clear what work will be provided.

It can be hard to know which activities are good to pass off.  CMK Financial Services sits down with our clients and does a no cost assessment.  We discuss your needs and budget.  Do you want to see monthly financials by the 5th of each month or are you fine with quarterly financials?  Do you want to keep handling your sales tax returns?  Will you be handing over payroll processing?

Once the assessment is complete, we provide you with a list of the activities we will provide, catered to your needs.  We’ll determine the timelines for the activities and let you know what information, such as bank statements or payroll summaries we’ll need from you to keep your books current.  We’ll also provide you with a description of the rates.  Each party signs the engagement letter.

CMK Financial Services provides every client with a 90 day review of the engagement letter.  At which time we make sure you are getting what you want and that the cost is what you expect.