What is an engagement letter?
Definition An engagement letter is the written agreement between an accounting or tax firm and a client that defines the scope of work, fees, responsibilities, and terms for a specific service, a 1040, a bookkeeping engagement, advisory work. It sets expectations and provides legal and professional-liability protection for both sides, and is usually signed before work begins.
Most firms send a fresh engagement letter per service per year. Done well, signing is integrated into onboarding, the client signs, and the work and portal access open automatically. Done poorly, it's a PDF emailed back and forth.
In LucaLedger, engagement letters are sent and e-signed inside the workflow, kicking off the engagement directly.