engagement-letterlisted

# Engagement Letter Drafting ## When to use this - A new client is signing on and needs an engagement letter before any work starts. - Annual re-engagement: a new tax season (1040, 1120-S, 1065) or a new financial year for AU/NZ/UK/CA clients. - Scope changed mid-engagement (client added payroll, a second entity, or a cleanup project) and the letter needs amending or reissuing. - Fees are changing and the firm reissues letters rather than sending a separate fee notice. - The firm is standardizing letters across its client list and wants a base draft per service line. ## What to gather first Ask for anything missing before drafting. Never invent client facts, fees, dates, or legal terms; use [PLACEHOLDER] tokens for anything not supplied. 1. Jurisdiction: US, AU, NZ, UK, or CA? This drives terminology (IRS vs ATO vs IRD vs HMRC vs CRA, sales tax vs GST/BAS/VAT) and which professional body's requirements apply. 2. Firm and client identity: legal names, entity types, and who signs for each side. For a joint 1040, both spouses sign. For multiple entities, ask whether the firm wants one letter per entity or one letter with a schedule of entities. 3. Services in scope, specifically. "Tax" is not a scope; "preparation of the 2026 Form 1120-S and one state return" is. For bookkeeping: frequency, number of accounts reconciled, who runs payroll, who owns sales tax or BAS lodgment. For month-end close: the deliverables and the delivery day. 4. Fee model: fixed fee, monthly subscrip