What it is
A bookkeeping engagement is a nonattest service. For a firm that also audits, reviews or compiles for the same client, the AICPA Code treats it as a service that can impair independence unless management takes responsibility for it and the firm does not make management decisions. The letter is where that is documented.
This template has a services table with frequency and an included-or-not column, client responsibilities (an oversight person, authorizing transactions, delivering records by a date), a plain statement that bookkeeping gives no assurance, software and access terms, fees and termination.
When to use it
- Taking on a client for monthly or quarterly bookkeeping, payroll or accounts payable support.
- When an existing attest client wants bookkeeping help and the firm needs the nonattest terms on file.
- To define scope and stop work creeping into catch-up or cleanup that was never priced.
What’s inside
- A services table: bank and card entry, reconciliations, AP, AR, payroll, close and sales tax
- Statement that the work is not an audit, review or compilation and the reports are for internal use
- Management responsibilities, including the person who oversees the work and authorizes transactions
- Software access, confidentiality, fees, term, termination and records
Standard cited
This template follows AICPA ET 1.295 (nonattest services). It is written in our own words, except for phrases the standard requires the document to contain, with [bracketed placeholders] for client details, amounts in USD and dates as MM/DD/YYYY. Check it against the current standard and your firm’s methodology before use.
Questions
Does bookkeeping impair independence for an attest client?
It can. The AICPA Code allows nonattest services such as bookkeeping when safeguards are met: management accepts responsibility, the firm does not make management decisions or take custody of assets, and management has a person with suitable skill, knowledge or experience to oversee the work. See ET 1.295 and your firm’s independence policies.
Should the firm approve or sign payments?
For an attest client, generally not. Preparing payments for the client to approve and release is common. If the firm has any payment access, document the controls over it and consider the independence effect.
Can the firm limit its liability in this letter?
Some firms add a clause. Whether it is permitted depends on the AICPA Code, state board rules and, for some clients, regulators. Have counsel check the wording before it goes in.
Related templates
- Preparation Engagement Letter (AR-C 70)
- Compilation Engagement Letter (AR-C 80)
- Month-End Close Checklist (Excel)
Last updated 11/05/2026. All free templates.