Engagement Letter Template
v3.2
Purpose. Staff use this template to set out in writing the services the firm will provide, the responsibilities of the client and the firm, fees and the terms of engagement before work begins.
1.Purpose of the engagement letter
The engagement letter is the contract between the firm and the client. It defines the scope of services, so that both parties know what is included and what is not, and it records the client's responsibilities for providing complete and accurate information. No work is started and no fee is charged until the letter is signed and filed in the Client Register.
2.Scope of services
List each service in plain language, for example monthly bookkeeping and reconciliation, quarterly activity statement preparation and lodgement, annual income tax return, payroll processing for a stated number of employees, or credit assistance for a home loan. State clearly any service that is excluded, such as audit, financial product advice or legal advice.
3.Responsibilities
State that the client is responsible for the accuracy and completeness of the records and information provided, for keeping source documents and for meeting payment obligations to the tax office and others. State that the firm is responsible for performing the services with due care in line with the relevant professional and legal standards, including the Code of Professional Conduct for registered agents.
4.Fees and payment
State the fee basis, whether fixed, hourly or per lodgement, the billing frequency, payment terms and what happens if the scope changes. Include the disclosure of any commission received for broking or insurance services.
5.Privacy, confidentiality and records
Refer to the firm's privacy policy, explain how information is stored and shared with regulators, lenders or insurers as needed, and state how long records are kept and how they are returned or destroyed when the engagement ends.
6.Term, termination and complaints
State when the engagement starts, how either party can end it, and how the client can raise a complaint, including the right to go to the external dispute resolution scheme for licensed services.
7.Acceptance
The client signs and dates the letter and the responsible manager countersigns. Both copies are filed against the client in the Client Register.