Engagement letter procedure
SOP template
Check this template against your local regulations and your own policies before you use it.
| SOP no. | Version | Effective date | |||
|---|---|---|---|---|---|
| Owner | Approver | Review date |
Purpose
To make sure every client has signed an engagement letter that matches the work the firm does before that work starts, and that it is renewed when the work changes.
Scope
Every new client, every existing client at the start of each year, and every change to the services the firm provides.
Responsibilities
| Role | Responsibility |
|---|---|
| Partner or client manager | Agrees the scope and fees with the client and approves the letter. |
| Administrator | Prepares, sends and chases the letter, and files it once signed. |
Procedure
Confirm the scope and fees
Agree with the client which services are included, which aren’t, and how each is charged.
Prepare the letter
Use the firm’s standard letter, and fill in the services, fees, timing and both parties’ responsibilities.
Send it for signing
Send the letter with an electronic signature request, and chase it after a week.
Caution: Don’t start chargeable work until the letter is signed, unless the partner approves it in writing.
File the signed letter
Save it to the client’s file and record the date signed in the practice software.
Renew it each year
Send updated letters at the start of each financial year, with any fee changes.
Handle scope changes
When the client asks for work outside the letter, quote it and send an updated letter or a variation before you start.
Records
- The signed engagement letter for each client and year.
- Any variations agreed for extra work.
Related documents
- Client onboarding checklist
Revision history
| Version | Date | What changed | Approved by |
|---|---|---|---|
