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Guide · Client
How to Send a Letter of Engagement to a New Client
A clear engagement letter is the cornerstone of a professional accounting relationship.
Built by a practising Chartered Accountant · Unlimited users · 60-day free trial · Last updated 23 September 2026
Quick answer
Issuing a formal letter of engagement is a requirement for all UK professional bodies. It defines the scope of work, sets out the fee structure, and outlines the responsibilities of both parties. This ensures legal protection for your firm and provides clarity to the client from day one.
Why is the engagement letter essential?
It provides a clear legal framework and manages client expectations effectively.
Without one, you are legally and professionally exposed.
What are the core components of the letter?
Scope of work, fee arrangements, limitation of liability, and standard terms.
Ensure all services are clearly itemised.
When should you update your engagement letters?
Any time the scope of service changes or there is a significant change in fees.
Review your letters annually to ensure they remain current.
See it working with your own clients
A 30-minute walkthrough using your services, deadlines and templates.
Send this from Remindoo
Save it once in Remindoo and send it from there. Store the wording as an email template, then use tokens so client names, company numbers and dates fill in automatically. Send it to one client or to a filtered group with bulk client emails. For requests that repeat, pair it with automated reminders and a recurring task so it goes out every period without anyone remembering. For engagement letters and proposals, use proposals and letters of engagement with e-signatures.
What are the common mistakes?
- Vague service definitions
- Missing liability caps
- Outdated terms
- Not getting a signature
“Automation saves time and no follow-up is missed.”
Frequently asked questions
Is a digital signature okay?
Yes, electronic signatures are legally binding in the UK and provide a robust audit trail for your compliance records.
How often should I review my templates?
Ideally annually, or whenever your professional body (like ICAEW or ACCA) issues updated guidance or recommended wording.
What if the client wants changes?
Listen to their concerns, but be wary of removing key protection clauses like your limitation of liability without legal advice.
Do I need one for existing clients?
Yes, you should have a signed letter for all active clients, and update it whenever you take on new work for them.
What should I do if they don't sign?
Do not start work. A client who won’t sign a standard engagement letter is a significant risk to your practice.
Can I combine terms and engagement?
Yes, many firms include their full terms of business as an appendix to the specific engagement letter for each client.
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Sources
Last updated 23 September 2026. General guidance, not regulatory advice.
Why tracking leads and proposals matters
Every enquiry a practice fails to follow up is lost fee income. A clear pipeline shows which prospects need a reply, a proposal or a follow-up.
Faster replies
Prospects often contact more than one firm, so the firm that replies first and clearly has an advantage.
Consistent proposals
Templates and a services catalogue keep scope and pricing consistent whoever writes the proposal.
Signed terms from day one
E-signed engagement letters confirm scope and responsibilities before work begins.
No re-keying
Converting a won lead into a client keeps the details you already collected.
Practical tips from UK practice
- Reply to every new enquiry within one working day.
- Use lead statuses that match your real sales stages, and review them weekly.
- Send the engagement letter with the proposal so the client signs once.
- Record why lost leads were lost, to improve pricing and messaging.
Related Remindoo features
Written and reviewed by Waqas Sagar ACA FCCA FMAAT, Chartered Accountant with 18+ years in practice. Founder and MD of Accotax, an ICAEW, ACCA and AAT regulated London practice that has served over 5,000 clients, and founder of Remindoo. Guidance is general; check current GOV.UK and professional body guidance for your firm.
What UK practices say about Remindoo
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