An accountant / bookkeeping engagement letter outlines the scope of work that a professional will provide for a client and typically includes details about compensation and the project timeline. Engagement letters are used primarily for filing taxes or audit services for an individual or business entity.
Engagement Letter For Accounting Services In South Africa
An accountant / bookkeeping engagement letter outlines the scope of work that a professional will provide for a client and typically includes details about compensation and the project timeline.
Engagement letters are used primarily for filing taxes or audit services for an individual or business entity. Accountants and bookkeepers are often required to have a signed engagement letter by all their clients before they can begin work as required by their professional liability insurance.
How to Hire an Accountant
To hire an accountant a simple agreement must be drafted that outlines the pay and scope of work provided. Due to the accountant having access to financial accounts, it’s highly recommended to use someone that is recommended by friends or family in order to know the person being hired is trustworthy.
Step 1 – Decide the Type of Accountant
In most cases, the client will be looking for a simple tax filing accountant to handle end of year records. Although, there are ten (10) types of accountants to choose from:
Tax Accountant
Auditor
Financial Advisor
Project Accountant
Staff Accountant
Forensic Accountant
Investment Accountant
Cost Accountant
Management Accountant
Government Accountant
Step 2 – Ask Around
The best way to find a qualified accountant is to speak with friends, family, colleagues, and your attorney. An accountant will have access to all financial records and be responsible for filing taxes and organizing your financials. Therefore, it’s highly recommended to find someone trustworthy and proficient in their services.
Step 3 – Search Online
If no one is recommended then it’s best to use qualified and reviewed accountants from the following websites:
Bark.com
Thumbtack.com
Yelp.com
Step 4 – Meet and Negotiate
After finding an accountant that meets your needs, it’s best to have a meeting and negotiate the services and the price. The accountant will usually charge an hourly rate ($/hr) and in some cases will give a price for the entire project.
Average Pay
Hourly Rate: R 518.40/hour (source: BLS)
Salary: R 1078406.09/year (source: BLS)
What is a letter of engagement in accounting In South Africa?
An engagement letter is a written agreement that describes the business relationship to be entered into by a client and a company. The letter details the scope of the agreement, its terms, and costs.
Do you need an engagement letter for bookkeeping In South Africa?
Accountants are required to have engagement letters with each client. Engagement letters help set expectations and define the business contract between a professional firm and its clients. It outlines the fee structure, responsibilities and obligations of the accounting firm and its client.
What should be included in an engagement letter In South Africa?
The engagement letter documents and confirms the auditor’s acceptance of the appointment, the objective and scope of the audit, the extent of the auditor’s responsibilities to the client and the form of any reports. The objective of the audit of financial statements.
Who is responsible for signing the engagement letter In South Africa?
The letter is written from auditor to client. Therefore, it is customary that the auditor signs the letter, just as you would sign any business letter. In many cases, the letter isn’t signed by an individual accountant but instead is signed by the accounting firm as a whole.
Is engagement letter required for an audit In South Africa?
An audit engagement letter is a written agreement used by auditors when signing a new client. These require both the client and auditors to agree on the terms and conditions of an audit engagement. For each client with which an audit firm enters into a business relationship, it must sign an audit engagement letter.