• What is Critical Race Theory?
  • Why is there a lack of POC in the accounting industry?
  • Incremental Progress
  • Recruiting Diversity
  • Response to CRT


Additional Resources



Meet Dr. Anton Lewis


Dr. Anton Lewis is a tenured Associate Professor of Accounting at Valparaiso University, where he primarily teaches undergraduate financial accountancy and managerial accountancy, as well undergraduate Audit and Accounting Information Systems classes. Dr. Lewis attended Bangor University, where he earned his BA in Accounting and Finance. He later earned his Ph.D. in Accounting from Leeds Beckett University.


What is Critical Race Theory (CRT)?


Critical Race Theory (CRT), as Dr. Lewis describes it, “is simply acknowledging a truth that race is a feature of our lives, and we should look at that. We should talk about that.”  Dr. Lewis stated that CRT is all about coming to realize the centrality of race in our society and then having a conversation about it.


Why is there a lack of POC in the accounting industry?


The AICPA Recent Trends Report states that only 2% of all CPAs in the US are black—even fewer of those CPAs are Partners at just 1%. Professor Teresa Hammond cites some 1997 data in her 2002 book that black CPAs represented under 1 percent of CPAs at the time. “I give you these figures to highlight the longevity of this issue. We’ve had virtually no significant movement over that time, and we realized in the mid 90s, if not way before then, that we have an issue,” explained Dr. Lewis. So, how do we deal with this issue? Dr. Lewis notes that it isn’t that simple, because this is “a longstanding, intractable issue.”


“Our profession exists within society, and society has not had any meaningful handle on this,” Dr. Lewis said. Due to this, it is not unusual to see this same trend across many professions. The question then becomes “What are we doing to keep our house in order?” The first step, as Dr. Lewis mentioned, is to engage in an open and honest conversation about those issues.


Incremental Progress


“Given the recent foire concerning Black Lives Matter, that has firmly put issues of diversity, equity, and inclusion (DEI), particularly where African Americans and other people of color are concerned, on the accounting table.” Dr. Lewis commented that he has seen a couple of the Big Four firms making some impressive announcements concerning this issue. The Chairman of PWC, Tim Ryan, has brought issues of race and racism into focus for the profession to address. In several reports made by PWC, they have set DEI benchmarks for their company. “I should hasten to add that, Tim Ryan, he’s a white male. He is a white man at the top of one of the Big Four accountancy firms and is looking to change this.”


Deloitte has also made significant progress in this area, according to Dr. Lewis. Deloitte has announced that they will put $75M towards improving DEI, particularly for the African American community. They’ve initiated what they call their MADE (Making Accounting Diverse and Equitable) program to help address DEI issues. KPMG and Ernst & Young are also doing similar things but have not been nearly as vocal about their programs. Dr. Lewis also mentioned that there are several Fortune 500 companies that have stated they will contribute a collective $1 billion to deal with DEI issues.


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Recruiting Diversity


In order to recruit more diverse people, you have to buy into the notion that a diverse team is better for you, your company, and your clients. Once you do that, you have to start considering your pipeline. Are you recruiting tactics pulling in diverse applicants? If not, it is helpful to consider why. If you’re a brick-and-mortar shop in a low-diversity area, it may be a little harder to build a diverse team. However, if your business and team work in a remote format, there is less of an excuse for not having a diverse team.


Dr. Lewis noted that diversity at larger institutions has often fallen short, and what he hears from many of those employers is “we just can’t find qualified black applicants to fill that space.” And he stated that this particular line of thinking is a misnomer, because those institutions are recruiting at large Research 1 and Research 2 universities. The problem with this practice is that the Ivy League, R1, and R2 schools are not comprised of a large number of black students. In fact, the number of black students on those campuses is rather miniscule. His response to those institutions that are recruiting from such schools is “You’re recruiting from a small pool to begin with. You have to be more inventive.”


Many small to mid-size firms often wonder to themselves, “If the Big Four can’t get it right, how can I?” That is where most people get it wrong. Dr. Lewis replied that most black CPAs, proto-accountants, and accountancy professionals don’t want to work in one of the Big Four. They don’t necessarily want to work in a large institution. “They want that personal piece. They want to know who they’re managing. They want to have a sense of doing the complete tax process,” Dr. Lewis said. “Because a firm is smaller, you can have a greater interpersonal relationship. You can have deep, more meaningful relationships.” Smaller firms, then, have a much better chance of recruiting a diverse team, provided that you have a diverse pool of applicants to select from. If the sentiment is there, if the drive to make a difference in the profession is there, you will start to see results as time goes on.


Response to CRT


“I exist as the wild man in the wilderness about this,” Dr. Lewis said. “If industry leaders want to talk, they have not spoken to me.” He went on to say that he isn’t seen as an outcast, because for that to happen you have to have a dialogue first. Dr. Lewis shared that his message remaining unheard and this conversation never happening is his biggest fear. There is not enough conversation happening at the corporate level about DEI, and Dr. Lewis commented that accountancy academia is even worse. “Getting published on this is a real problem,” Dr. Lewis shared. “Publishing often means tenure and if the publications don’t take you seriously and the editors say ‘This is not for us,’ that could mean you never get tenure.”


This does not mean that there is no progress being made in the industry. Dr. Lewis has formed the Accounting & Race Forum (ARF). “We are a group of international accounting academics that specifically examine the areas of race and racism,” said Lewis. “We’re not only a network that not only talks about these issues but also writes about these issues.” The ARF also challenges some of the DEI policies produced by the AICPA and the ICAEW without the input of experts in the DEI field.


“We need a much more firm connection between industry and the academia of the accounting industry, specifically as it relates to critical race theory and DEI.” What really needs to happen, according to Dr. Lewis, is action. Action needs to be taken in order to make progress. “In 1969, the AICPA mentioned that the lack of inclusion of African Americans in public accounting in the US is a travesty.” Dr. Lewis continued by explaining that the AICPA stated they would work to change this. However, the statistics he mentioned at the top of the episode show just how little work they did to amend the issue.


Before you can start to address these issues at the local level or even at the industry level, Dr. Lewis stated that we have to be brave. “If we accept that within the United States, there has been and continues to be institutional racism replete through our society. Then, accounting organizations from top to bottom… it must exist there, too. And if it exists in our house, what are we going to do about?” The bravery is recognizing the state of the industry and then wanting to make a change.




We covered a ton of great information in the podcast, so if you’re after more detailed information, be sure to check out the full episode. If you’re interested in learning more about Critical Race Theory and how you can help further the conversation about diversity, equity, and inclusion, you can get in touch with Dr. Lewis via email or via any of his social media profiles.


See Jetpack Worflow In Action

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jira for accounting and bookkeeping firms

Your team is growing, and so is your project list. It used to be easy enough to monitor what everyone was working on in real-time and which deadlines are looming. However, growth makes it more complicated to monitor all the moving pieces. 

Each accounting project contains a series of steps involving several team members, from bookkeepers to accountants to consultants. 

When simple to-do lists stop working, it’s time to start using project management software for your accounting or bookkeeping firm to foster sustained growth. 

What Project Management Options Are Available for Accounting and Bookkeeping Firms?

Project management tools for CPA and bookkeeping firms range from pen and paper ledgers to customized accounting firm management platforms.

Spreadsheets and Shared To-Do Lists

Except for the smallest firms, project management is no longer accomplished with pen and paper. Most firms have moved their collaboration systems to email, spreadsheets, or shared task lists. Many firms will use a combination of these systems to piece together a project management process that might be sufficient enough for small firms.

The drawback of piecemeal systems is it’s easy to overlook items that might appear on a to-do list but don’t make it to a calendar reminder. Sometimes a team member will forget to check the spreadsheet for upcoming tasks and not receive a reminder that the client is expecting a deliverable.

This project management method also makes it difficult to determine if you have resources which are not being fully utilized or team members who could take on additional work, especially for larger financial firms. You’ll need to regularly check in with your team to gauge workloads, which can be a time-consuming process.

Accounting and Bookkeeping Workflow Software

To save time and improve your profitability, you should consider implementing accounting and bookkeeping workflow software. With an accounting workflow software solution, all tasks are entered, completion of each step is tracked, and team member workloads are monitored.

Accounting and bookkeeping workflow software comes preloaded with templates designed with accounting and bookkeeping firms in mind, while allowing you to customize the templates with custom fields based on your specific needs and workflows.

Additionally, workflow software has integrated reminders which nudge team members to complete upcoming tasks, allow you to track client interactions and updates, and help you manage your time tracking and billing. Integrated solutions prevent you from having to enter tasks in multiple spots and having several forms of overlapping communication about projects. These integrated software solutions minimize the time you spend managing the project and maximize the time your team spends on projects.

The best workflow software allows you to quickly onboard new clients, assign relevant tasks, load predefined templates, and get to work. 

How Jira Works for Accounting and Bookkeeping Firms

Jira was designed to facilitate issue tracking and project management. It sounds great, but is it the best solution for accounting and bookkeeping firms? Jira was designed for use in software development, although it has been adopted as project management software in various industries. 

Jira allows you to create tasks, assign tasks to team members, and monitor your resource allocation. The built-in features include the ability to track user stories and plan project sprints – two of its top features. However, those are not really relevant for accounting firms. Jira also allows you to track project releases, which again makes sense for software development, but less so for accounting or bookkeeping projects. 

Jira also allows you to create workflows for your project. However, the built-in templates are related to software development and do not include any predefined accounting templates. You can spend time building your own templates, but the initial setup requires a significant investment of time.

Integration with other applications is another key feature of Jira. However, Jira does not integrate with any of the most popular accounting software such as QuickBooks or Xero (although it does provide some limited integration with QuickBooks for invoicing your client). Each client and project will need to be individually entered into the software.

Jira is organized first by the board and then by the project. It can be challenging to decide how to fit an accounting or bookkeeping firm’s project structure into Jira’s layout. Should each project have its own board and then be redefined for each client? Will having a board for each client become unwieldy for large firms? Will having team members able to access all of your clients cause information overload?

Jira also does not include an integrated recurring task feature. There are apps in the Jira marketplace allowing for the creation of recurring tasks, but the ability is not native to Jira. While accounting tasks are usually recurring by nature, Jira was simply not designed with accounting or bookkeeping firms in mind.

Lastly, Jira does have integrated messaging capability, which can help move projects along and keep client notes in a single place accessible by all team members assigned to the client. Jira might be a good solution for an accounting department which is part of a large organization, especially if the organization is in a tech related field.

Best Alternatives to Jira

Jira might work for an accounting firm, although you might also be able to keep using your spreadsheets to track your work. Just because it might work for you, does that mean it’s an ideal solution? Below are some alternatives to Jira which may be a better fit for your accounting firm.

Best Solution for Accountants and Bookkeepers

While Jira may work best for software development firms, Jetpack Workflow is a project management tool built from the ground up specifically for accounting and bookkeeping firms.

Jetpack Workflow was designed to manage long client lists, multiple projects per client, and teams where various team members are responsible for different parts of projects. This all-in-one project management solution helps firms increase client satisfaction by staying on top of projects and improving the quality of their work product by ensuring the right team members are assigned to each task and have adequate time to complete it.

If you’re considering giving Jetpack Workflow a try, a free 14-day trial is available. If you’re not sure if you’re ready to jump into accounting workflow management software just yet, check out these free templates in the meantime.

Best for Firms on a Budget

If your firm’s budget is tight, using spreadsheets or pen and paper are your best bets. While these options don’t cost anything financially, there is a cost in time and efficiency. Balancing the cost of a tool versus the cost of your employee’s time should be carefully factored when considering each of these low-cost options.

Best for Large Companies with Many Departments

If you work for a large company with several departments not limited to just accounting or bookkeeping, or Airtable are options to consider. They both have a user-friendly interface and are easy to learn. Various departments can create tasks, message each other, and create workflow templates through these tools. 

See Jetpack Worflow In Action

Get under the hood of Jetpack Workflow’s accounting workflow and project management platform. See some of the top features and how it helps your firm standardize, automate, and track client work more efficiently.

Champion Profile

Meet Monica Hodgson Daniels. She is the owner of Garnett and Gold Financial Corporation. They are an accounting firm built to help business owners achieve their dreams.

The Challenge: Glitchy workflow providers

Monica’s previous workflow provider wasn’t getting the job done. It seemed like they always had system updates and glitches, which made completing tasks a pain.

Overall, it wasn’t working well for what she needed. 

The Solution: Switching to Jetpack Workflow 

“Setting up Jetpack Workflow was pretty amazing! It was seamless!” 

Monica loved how easy it was to set up Jetpack Workflow. All she had to do was use her QuickBooks data file and import her information over to Jetpack. 

The best part of getting started? She didn’t have to do any data entry! 

Monica says the biggest ROI of using Jetpack Workflow is not missing a deadline. It tracks all of your jobs and sends updates of when they are due. This ensures she meets deadlines for all of her clients. 

Results to Date

Monica is still using Jetpack Workflow for document management. She enjoys the ease of scanning, uploading, and storing. 

Her team also heavily relies on the activity notes for collaboration purposes, as well as the job tracking system. 

“I love the fact that it has a job tracking system. I never miss a deadline for my clients.”

Jetpack Workflow makes document management, team collaboration, and never missing a deadline easy for firm owners! 

See Jetpack Worflow In Action

Get under the hood of Jetpack Workflow’s accounting workflow and project management platform. See some of the top features and how it helps your firm standardize, automate, and track client work more efficiently.

Champion Profile

Meet Pat Palmer: the owner of Palmer’s Accounting & Tax Services (PATS). Pat was running a one-woman show until a couple of years ago when she brought on her first employee.

The Challenge: Providing free work because of unorganized tracking

Before using Jetpack Workflow, she bounced around from software to software trying to find one that would work best for her business. 

She landed on a tool for software programmers but it was missing key features. This meant she was also relying on spreadsheets. As a result, Pat spent an hour and a half each day organizing what she needed to do and when. 

She was stressed, underproductive, providing work for free, and tasks were falling through the cracks.  

The Solution: Jetpack Workflow organized her work 

Pat realized she was giving away work. However, by using the built-in timer in Jetpack Workflow, she stated the timer immediately after beginning a project, would  pause it as needed, and start it again later. This feature allowed her to start capturing her time more consistently resulting in accurate client invoicing, and no more giving away work for free.

Pat adopted Jetpack Workflow in a seamless fashion. She loves working with the team and praises the short learning curve for the tool. 

With Jetpack Workflow’s reminders, Pat no longer has to sift through spreadsheets to know what needs to be done.

“I don’t even think about what I need to do anymore, I know Jetpack Workflow is going to tell me.”

Results to Date: 

Jetpack Workflow’s tool kept her organized and allowed her to properly track her hours resulting “in an increased revenue of 30%.” 

Pat was also able to seamlessly bring on a new employee. Tasks were easily transferred and they use the notes feature in Jetpack Workflow to communicate. With the help of Jetpack Workflow, Pat “felt confident in being able to manage her.”

Here’s what Pat would say to someone interested in Jetpack WorkFlow: “Setup is very easy, which was a big obstacle for me. If you’re already overwhelmed with work, how are you going to find the time to set up a new software? But set up was very easy. I was able to transfer my client base over from QuickBooks. That was done immediately. Jetpack Workflow comes with template. You can start with the templates to set up your jobs. I’ve started with the templates Jetpack provides. As I worked with the templates, I tweaked and edited them. Now, I’ve got a beautiful, step-by-step outline of what has to be done for this job.”

Whether you’re a one-person army or a growing team, Jetpack Workflow has you covered. We keep you focused on the tasks ahead, ensuring no deadlines fall through the cracks so you can scale your firm with ease.

See Jetpack Worflow In Action

Get under the hood of Jetpack Workflow’s accounting workflow and project management platform. See some of the top features and how it helps your firm standardize, automate, and track client work more efficiently.





  • What Is LittleNewt?
  • History & Technology Behind  LittleNewt
  • The Future of LittleNewt
  • Trajectory of the Industry
  • Who is LittleNewt for?


Additional Resources



Meet Christopher Mundon


Christopher Mundon is the CEO and Co-Founder of Little Newt, a company whose goal is to develop and market a truly revolutionary federal income tax automation product.


What Is LittleNewt?


Christopher notes that the product is designed to do what he did during his first year as a tax associate at Ernst & Young. It automatically gathers PDC, creates work papers, does the M1 calculations, maps everything out, and then sends the data to the determined tax software. “And it does all of this in about 20 minutes,” Mundon says. “So what used to take me about a day-and-a-half as a first-year tax associate, this does in about 20 minutes, running nonstop.”


According to Mundon, the goal is for LittleNewt to function as a fully automated first-year tax associate. Despite this goal, the current intention is to enhance the functionality of existing tax prep software. 


History & Technology Behind  LittleNewt


Mundon notes that the idea came to him while he was in college. As a fourth-generation CPA, he knows how hard tax season can be. So, LittleNewt—which is the nickname his grandfather had—is designed to lessen the impact of tax season on a CPA’s life, which is why they license it to CPA firms.


Technologically speaking, LittleNewt makes use of an NLP algorithm that reinterprets the data funneling into their database to determine what information is necessary from a tax standpoint and uses that information to prep work papers. “And then, through an older technology, we can send the data from our work papers directly to the software itself,” Mundon says. He notes that it was the move to cloud accounting software that really enabled this process.


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One of the things that Mundon hears over and over again is people saying “Fake it till you make it. I hated that advice. I’ll say we do think that, once we start to scale, our software will learn from user interfaces and inputs,” Mundon shared. He notes that the engineer that developed the NLP program for LittleNewt has also developed a machine learning program for the company to roll out once they have more users onboard. For example, LittleNewt is not currently set up to handle 74b or 74c tax forms, but the infrastructure is there for the eventual rollout. 


The long-term goal is to help the program progress from a first-year associate level up through second-year associate, senior associate, and eventually manager. “I doubt that it would ever get to the level of a partner, but that’s the goal,” Mundon says. The trajectory is to help CPAs move away from tax prep toward tax planning and consulting.


Trajectory of the Industry


“I think the CPA definitely is not going to go away. It will change,” Mundon says. According to Mundon, AI will have a bigger impact on firm development and industry evolution than Excel did. AI will essentially become a part of a firm’s staff. What AI will allow CPAs to do is shift to being a reviewer instead of a preparer and focus on the softer skills needed for customer engagement. 


This is why the role of a technologist is going to become increasingly important for firms. While you as the CPA focus on those soft skills and engaging your customers, you need to have someone on staff that is dedicated to helping you build out the technology stack that will help you grow. 


“CPAs are becoming more and more like technologists, and I 100% agree with that. I think CPAs are somewhat inherently software developers,” Mundon says. “Anyone who knows Excel really well could easily make the transition to being a software developer, because they’re inherently used to formulas and love databases.”


Who is LittleNewt for?


“Our sweet spot right now is bookkeeping firms that also do tax work,” says Mundon. However, he clarified that LittleNewt rarely does work with businesses that don’t at least have an executive assistant. While their primary focus is on bookkeepers that do business returns, they also want to grow into larger markets. Presently, LittleNewt is able to help process several different types of business returns: 1120, 1120S, 1065, and, later this year, 1040


“1040s are a special beast because, whereas business returns are more financials-based, 1040s are more W-2s, 1099s, K-1s, so you have to have the ability to import and read PDFs—which we’re just now starting to build into it,” Mundon says.


Mundon reflected back on something he heard in his undergraduate program. One of his professors told his class that any tax return software should only have one place to enter in data. “At the time, I was like, ‘Uh, yeah. Who wouldn’t do it that way?’ but then you get out into the real world and think, ‘Oh no, this is terrible,’ because these software are just riddled with redundancies.” The potential for errors is just everywhere. Mundon believes that CPAs should only ever have to correct data in the work paper, and that’s it.




We covered a ton of great information in the podcast. If you’re after more detailed information, be sure to check out the full episode! If you’d like to connect with Christopher, you can visit his website, email him at, or send him a text at 512-318-3196.


See Jetpack Worflow In Action

Get under the hood of Jetpack Workflow’s accounting workflow and project management platform. See some of the top features and how it helps your firm standardize, automate, and track client work more efficiently.
accounting engagement letter

You know that client… the one who calls every couple of days with a new accounting emergency. 

It could be the serial refinancers who need updated financial statements every couple of weeks as they chase down the best rate. Or the business client who comes across some unique investment idea requiring thorough tax projections and hours of research. 

While CPA firms can help out with any of these requests, you also need to safeguard your time and get compensated for additional services.

To protect yourself from time drains, minimize your professional liability, and maintain your firm’s profitability, you need to ensure you have an engagement agreement in place for each project.

What is an Accounting Engagement Letter?

An accounting engagement letter is a contract outlining the scope of work, billing rates, and any other relevant terms of the engagement. The contract should be agreed to by all parties prior to commencing work. 

For long-term engagements, you should update the engagement letter each year to ensure the terms are still correct and the included services cover the entire scope of the client’s requests. 

An accounting engagement letter should be signed and accepted by each party to signify acceptance of the contract and understanding of the services to be rendered and at what price. In addition, it should include language for billing practices of additional services that might be outside the scope of the initial project. 

As an accountant, having an engagement letter helps you determine how much of your resources to allocate to the project and calculate the profitability of each engagement. 

There are many types of accounting projects that should have signed engagement letters in place, including tax engagements, accounting engagements, bookkeeping engagements, and consulting services. Each of these letters should be tailored to the specific projects. It’s possible you will end up having several agreements in effect for a single client.

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Do You Really Need to Send a Letter at The Beginning of Each Engagement?

The short answer is yes, you should have an engagement letter at the beginning of every engagement and have a signed agreement prior to commencing work. 

The longer answer is it may not always be possible to draft an engagement letter prior to starting a project if the project is particularly time sensitive. However, time sensitive projects have greater potential liability due to their rushed nature. This puts greater significance on having the signed agreement ahead of time to outline your liability and responsibility for the project.

But why is the engagement later so important? 

1. It defines the scope of services

Both parties need to be on the same page as far as the scope of the project and which services are included in the pricing. Clearly outlining these items at the beginning means the discussions about the project and price have happened before you have invested any of your team’s time in the engagement. 

2. It outlines all billing terms from the outset

One of the worst phrases in business is “just invoice me what you think is fair.” This puts all the onus on you to walk the fine line between receiving proper compensation for your services and meeting the client’s (unknown) expectations. Setting the billing upfront (whether it’s a flat rate or hourly fees) forces this discussion to take place prior to the project. It drastically increases the chances you will be paid for your services.

3. It defines responsibilities

Taking the guesswork out of which responsibilities belong to your firm and which belong to the client lets you focus on the work. For example, if you are handling account receivables for a client, who is responsible for reaching out to delinquent accounts? You’ll want to have this agreed upon going into the gig. 

4. It helps protect you from liability

With any client relationship, there’s a chance the situation might go sour. If the engagement doesn’t work out or one party’s expectations are not met, it’s possible you will need liability protection. Having an engagement letter in place outlining your obligations can help protect you in the event a client tries to sue you for nonperformance, assuming you fulfilled your responsibilities. 

what to include in accounting engagement letter

What Your Accounting Engagement Letter Should Include

Before we get to the template, here’s what you should consider including as part of your engagement letter:

Names of each party and their role in the engagement

You may or may not need to include every member of your team who will be working on the engagement (although some government and quasi-government clients will want this information). You should include the name of your business and the client’s name. This might seem obvious, but for the contract to be official, you can’t have the client sign a generic letter and expect it to hold up.

Scope of work

Each service you render should be included in the scope of work with as much detail as possible. For example, does your engagement include follow up calls to the IRS, audit support, or document storage? If not, you need to clearly state the engagement is limited to the preparation of a tax return and any additional support needed is outside the scope of the initial engagement.

Billing terms

Billing has been mentioned a few times already because its importance is paramount. If you have not outlined the cost of the project, it hampers your ability to go after the client in the event they refuse to pay all or part of your bill.

Each party’s responsibilities

Who is responsible for providing source documents? Who handles the accuracy of any information provided to complete the accounting engagement? Is the scope limited to a compilation service or is the client looking for a full audit? Knowing who is responsible for providing and processing information gets everyone to be on the same page and creates a smoother workflow.

Liability limitation

Accounting engagement letters should include terms which limit the firm’s liability as much as possible. Statements such as “we will rely on the information provided by the client” or “we will not audit or verify the information” are often included to show the scope of the project does not include auditing services. In addition, it’s wise to include resolution terms such as requiring use of mediation to resolve any future disputes with the client.

Termination provisions

Not all client relationships last forever. The engagement letter should include the terms for canceling the contract and provide ways for either party to end the engagement. Including standard terms such as requiring 30 days notice to end the contract allow both parties to know they won’t be abandoned in the middle of a project.

A Free Accounting Engagement Letter Template

We’ve created a sample accounting engagement letter template below, which you can use as a starting point. This example is for illustration purposes only. You should always consult a legal professional before finalizing your letter.

December 14, 2021

Onsite Construction

441 Building Street

New Land, OR 37488

Dear [Client Name]: 

We are thrilled you have chosen our firm to provide quarterly compilation services for your business and an annual review.

This letter is to confirm our mutual understanding of the terms of our engagement to provide accounting and review services for your firm.

We will provide quarterly compilation services consisting of: 

  • Reconciling bank accounts.
  • Reviewing the chart of accounts.
  • Preparation of Profit and Loss, Balance Sheet, and Statement of Cash Flows.
  • The compilations will be based on the tax basis of account.
  • Up to four hours per month of consulting work related to new accounts, treatment of assets, and training for your bookkeeper.

The quarterly services will be completed by the last day of the month following the end of the quarter. 

Additionally, we will also provide an annual review consisting of:

  • Verifying account balances through the review of bank and lender statements.
  • Ensuring depreciation has been correctly recorded on your books. 
  • Providing a statement certifying the books have been reviewed, once the review has been completed and any issues have been addressed.

The annual review will be completed within 6 weeks of receiving your financial information.

All services will be billed at our standard hourly rates:

  • Administrative staff: $xx/hour
  • Bookkeeping staff: $xx/hour
  • CPA: $xxx/hour

This engagement will be in place until either party cancels the agreement through written communication with 30 days notice.

Our responsibility in this engagement consists of completing the quarterly compilations with care and due diligence. All communication from your firm will be answered within 48 hours. 

Your responsibility for this engagement includes providing access to your accounting system and providing the documentation and information necessary to complete the quarterly compilation services and the annual review. 

While we stand behind our professional judgment and experience, our services are governed by the professional standards of the AICPA. 

In the event of any future disagreements, both parties agree to resolve the issues through mediation. Any cost for mediation services will be split equally between both parties.

We look forward to working with you. 



Barry Books, CPA

Accepted by:


[Client Name]

BONUS: Simplify Your Accounting Workflows with This Free Resource

If you’re looking for simple workflow templates, which includes a bookkeeping client onboarding checklist, access our collection of 32 customizable accounting workflow templates. This free resource includes a ton of the most popular accounting templates including monthly bookkeeping, weekly accounting analysis, client onboarding procedures, and common tax return forms.

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Get under the hood of Jetpack Workflow’s accounting workflow and project management platform. See some of the top features and how it helps your firm standardize, automate, and track client work more efficiently.