How do I tidy up my accounting firm’s engagement letters before a buyer reads them?
Gather every client’s engagement letter in one place, check each is signed and current, and make a simple index showing scope, billing basis and renewal status. Fill gaps before the buyer finds them. Do not rewrite old terms in secret; ask your lawyer how to handle updates properly.
Start with a full inventory. List every client and mark whether a signed letter exists, whether it matches the work you actually do, and whether it has been refreshed since the services changed. A buyer reading these will look for gaps, so find them first. Note which clients have never had a letter at all.
Next, build a one-page index. For each client, note the services covered, how fees are set, any special terms, and anything that limits your responsibility. Buyers are trying to judge how stable the relationships are, and a clear index shows that you run an orderly practice.
Be careful about editing. If a letter is missing or out of date, do not backdate anything or alter a signed document. Ask your lawyer how to put new letters in place with clients going forward, and how to explain that update to them honestly. Also check whether any letters name you personally rather than the firm, or limit transfer; your lawyer can tell you what a buyer will need and how consent is handled. Keep a dated record of what you change and why, so you can answer a buyer’s questions without guessing.
Key takeaways
- Count your signed letters against your client list and flag every gap.
- Build a short index of scope, fee basis and special terms for each client.
- Never backdate or quietly alter a signed document.
Related reading
12 pages on the same subject, grouped by topic.
Selling
- Expert answerHow do I tell clients my bookkeeping practice is changing hands without losing them?
- Expert answerWhich teacher agreements should I tidy before selling my music school?
- Expert answerShould I sell my accounting practice outright or merge it into a larger firm?
- Expert answerCan I gift part of my business to my children and sell them the rest?
- Expert answerDoes a seller’s non-compete still apply if the buyer later fires them?
- Expert answerHow can a daycare owner make the centre less dependent on them before selling?
- Expert answerHow do I document my delivery routes so a last-mile buyer can run them on day one?
- Expert answerHow do I hand over my bubble tea shop’s drink recipes without losing them?
- Expert answerHow do I hand over my millwork shop’s builder accounts without losing them?
Buying
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernment7 steps to increase your business’ value—before you sell it
- 02Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 03Business Development Bank of CanadaGovernmentHow to minimize negotiations when selling your business
Deavo is an advertising and listings platform, not a brokerage, law firm or valuation firm. This page is general information, not legal, tax, accounting or valuation advice, and rules differ by province. Confirm anything you rely on with a qualified professional before you act on it.