Why should you have a quality, automated engagement letter?
Engagement letters are a legally binding document that defines an overall business relationship between a client and a professional firm.
An engagement letter clearly defines:
- Each other’s responsibilities
- Fee structure
- Services provided and how they will look
If you are planning on working with more than one person in a business, you should send a letter of engagement to each person.
Advantages of a quality, automated engagement letter
Both parties benefit from having a well-written engagement letter, as you can build strong structured business relationships from the very beginning. This will show what a client can expect going forward with a firm.
A smooth and polished approach increases the client’s confidence and trust in who they are working with.
Quality engagement letters describing clearly what will and won’t be happening for a business, will reduce the number of misunderstandings.
The guesswork is removed as the document specifies the responsibilities, fees and other details of the agreement.
Engagement letters are legally binding and are designed to reduce liability, should a client complain a duty had not been carried out, when in fact the duty was not included in their engagement letter. If necessary, it is possible to seek damages should the other party not carry out what was originally agreed.
Organisation is improved with a thorough engagement letter, as the letter breaks down and simplifies the scope of a project, making it easier to meet deadlines, pull resources, which will result in the services being delivered as promised.
However, this process can be time consuming and take away from the other important functions of accountancy leaders and their teams.
Thankfully, with the right onboarding software, much of this process can be automated – with information pulled from existing data sources – to create effective engagement letters with minimal effort.
We are here to help
FibreCRM’s onboarding process aims to save accountants time through automating repetitive tasks, streamlining processes and through keeping client’s information all in one secure place. This shows new client’s they have chosen a digitally forward firm, with a fast and responsive service.
FibreCRM features an engagement letter generation component. This will save your firm hours from creating letters manually, when that time could be best spent delivering quality service.
Our engagement letter generation feature offers:
- Central management of templates and wording
- Auto-chasers
- Produce engagement letters from the sales opportunity
- Tracking status of e-signing
- Per service and per legal entity wording
- Supporting Mercia and HAT templates
Having a properly written engagement letter is highly beneficial to your business’ operations and allows you to focus on delivering quality service to your clients.
