This is a sample engagement letter — the kind of document you'd sign before work begins. It defines what we do, what you're responsible for, how billing works, and how either side can end the engagement. Shown here for illustration.
We will provide the services selected in connection with your engagement tier — which may include monthly bookkeeping, annual tax preparation and filing, ongoing tax planning, and fractional CFO advisory services, as applicable. The specific services in scope are listed in the engagement summary accompanying this letter.
Services are limited to those listed. Advisory opinions given verbally during scheduled calls are part of the engagement and are included in your retainer. Services not listed — including but not limited to litigation support, audit representation beyond routine IRS notices, business valuation, forensic accounting, and estate planning — are out of scope and subject to a separate engagement letter and fee agreement.
We will notify you if a request falls outside the scope of this engagement before performing any work on it.
You agree to provide complete and accurate records in a timely manner. This includes bank statements, credit card statements, payroll records, receipts, and any other documentation reasonably necessary for us to perform the services in scope.
Delays in record delivery may delay our deliverables and are not our responsibility. If a filing deadline is missed due to delayed records, we will notify you as soon as practical and assist in filing an extension where available.
You are responsible for reviewing and approving all tax returns before filing. No return will be submitted without your explicit written or electronic approval.
We rely on the accuracy of the information you provide. We are not responsible for errors, penalties, or additional tax arising from incomplete, inaccurate, or withheld information.
Your monthly retainer is billed on the 1st of each month, in advance. The retainer covers all services listed in scope. No additional charges apply for services within scope, regardless of time spent.
Surge work — including prior-year return catch-up, additional entity returns, IRS representation beyond routine notices (for Tier 1 clients), and any out-of-scope services — is quoted separately at a flat fee agreed upon in writing before work begins. No hourly billing surprises.
The retainer is non-refundable for services rendered in a given month. Either party may terminate this engagement with 30 days' written notice.
All information you provide — financial records, tax information, business data, and personal information — is held in strict confidence. We will not disclose your information to any third party except:
All members of our team who have access to your records are bound by the same confidentiality obligations. Confidentiality obligations survive termination of this engagement.
Our liability to you under this engagement is limited to the fees paid to us in the 12 months immediately preceding any claim. We are not liable for consequential, indirect, incidental, or punitive damages of any kind, even if advised of the possibility of such damages.
We are not responsible for errors, omissions, or additional tax liability arising from reliance on information provided by you that is inaccurate, incomplete, or untimely. Our work is based on the records you provide and the tax law in effect at the time of the engagement.
Either party may terminate this engagement with 30 days' written notice to the other party. Termination does not relieve either party of obligations incurred prior to the termination date.
Upon termination, we will provide you with all records, workpapers, and documents in our possession that relate to your account. We retain copies of workpapers and correspondence as required by professional standards.
Retainer fees paid for months in which no work was performed are refundable. For months in which work has begun but not completed at the time of termination, the final month's retainer will be prorated based on work completed.
This engagement is governed by the laws of [State], without regard to conflict-of-law principles. Any disputes arising under this engagement shall be resolved first through good-faith negotiation, and thereafter through binding arbitration conducted in [City, State] under the rules of the American Arbitration Association.
Demo note: state and city are intentionally left as placeholders in this sample letter.
Signing below constitutes agreement to the terms of this engagement letter. The engagement begins on the date of the last signature below. By signing, you confirm that you have read and understood all terms, and that you have had the opportunity to ask any questions before signing.
Daniel will look at your situation and tell you one specific thing your current tax setup is costing you. Written summary after. No pitch.