Accounting Client Engagement Agreement

What a good one includes

• A highly detailed, line-itemized list of the specific accounting, bookkeeping, or tax preparation tasks you will perform.
• A clear statement explaining that any work requested outside the agreed-upon list will incur additional fees at a specified hourly rate.
• A section outlining the client's duty to provide accurate, complete, and timely financial records and documentation.
• Specific details on retainer requirements, invoicing schedules, accepted payment methods, and penalties for late payments.
• A protective clause that caps your financial liability, typically limiting it to the total fees paid under the agreement.
• Clear guidelines on how either party can end the contract, including required notice periods and handling of final payments.

Common mistakes to avoid

• Vaguely defining the scope of work, which inevitably leads to unpaid "scope creep" when clients expect extra advisory or tax services.
• Failing to state that you are relying entirely on the information provided by the client without auditing or verifying its accuracy.
• Omitting a clear timeline or deadline for when the client must submit their receipts and bank statements to avoid late-filing penalties.
• Using a generic, non-specific contract template that does not address state-specific accounting regulations or digital security liabilities.

Frequently asked questions