What is a letter of engagement?

Definition of letter of engagement

A letter of engagement is a legally binding document that a professional sends to a client to acknowledge that they’re working with them and that they have access to sensitive information that’s not publicly available.

In accounting, for example, an accountant would send a letter of engagement to their client to outline the terms of their service, the cost of providing this service and the access the accountant has to the client’s finances.

For accountants, letters of engagement are not optional. An accountant must send a letter of engagement to all of their clients and they must be signed before work can start.

Find out how accountants can use letters of engagements to build better relationships with their clients.