Engagement letters are important because they outline the expectations and responsibilities of both the bookkeeper and the client. They also help protect both parties in case of any disputes or misunderstandings, especially involving the scope of work to be completed.
It serves as a binding document between an accountant and their client, outlining the responsibilities and expectations of each party.
Engagement letters are a daily requirement in fields like law, accounting, and consulting. They serve as a formal agreement outlining the scope of work, terms, and conditions between a professional and their client. If you haven't drafted one already, chances are you'll need to in the future.
The service provider typically prepares the Letter of Engagement, be it a law firm, accounting agency, consultancy, or any professional offering services.