Client engagement letters are crucial for us as an accountancy practice. These letters outline the terms of the professional relationship between us as accountants and you as the client, ensuring clarity and protecting both parties.
First and foremost, an engagement letter sets clear expectations. It defines the scope of services to be provided, including specific tasks such as tax preparation, auditing, or financial advisory. This prevents misunderstandings about what is included and helps manage client expectations. By detailing the nature of services, it ensures both parties are on the same page from the outset.
As well as the above, these letters help us to ensure compliance with professional standards and regulations. Like most firms of accountants, we are governed by regulatory bodies such as the ICAEW, and having a signed engagement letter is often a requirement to meet these standards. It also demonstrates that the firm is operating with transparency and professionalism, enhancing the practice’s credibility.
In conclusion, client engagement letters are not just a formality—they are a fundamental part of managing relationships, ensuring clarity, protecting legal interests, and complying with industry standards. For us, they are an essential tool for maintaining trust and balances the benefits to both parties rather than purely our own risk management.
Within our Business Services department, we are currently going through a process of ensuring all of our clients have a current up to date engagement letter. If you would like to know more about our engagement letters, please read the post below.
If you have any questions, please get in touch with myself or our team.
Corporate finance 
Business services 
Corporate tax 
Audit and assurance 
