First Previous - Page 1 of 1 - Next Last

First Client

  • 22 posts
  • # 96781

Hi all, I am about to set up a meeting with my first client who is just starting a small building business.  They have asked me to set up an accounts package and keep their books on a monthly basis. Firstly I need to write an engagement letter for before I take on the work but not sure exactly how to word this so if anyone could send me theirs just as a guide.  And secondly if there is any other info anyone would share with me as just a tad nervous and dont wont to leave anything out.

I also havent updated my membership but am not a student as seen.

 amd73@live.co.uk

Thank you in advance

 

Andrea x



Edited at 04 Jan 2014 01:00 PM GMT

  • 1159 posts
  • # 96782

Firstly, congratulations on your new client.  You're doing the right thing making sure you have a letter of engagement in place from the beginning.  ICB have a template letter, but I think the concensus on the forum is that it's not that great.

The main points you want to cover in the letter are:

  • Your details and the clients details
  • The scope of any limitations of the work
  • Agreed upon services
  • Your fees
  • How you will treat additional expenses incurred
  • Your payment terms
  • Termination of the agreement
  • Limit of your liability

These are the main points I have in my letter of agreement and it's served me well so far.  It's never been tested in court yet, and hopefully will never need to but I've not had a solicitor look over it either.

There is an example here, but it's a bit American in places: http://www.accountancyforbusiness.co.uk/letterofengagement.html

  • Member
  • 495 posts
  • # 96783

Without wishing to sound too daft here - the first thing you need is your practice licence!  

As you are listed as a student that implies no insurance and no licence as yet - without those you risk breaking the terms of the ICB membership.  I'd get on the phone first thing Monday and get those sorted sharpish if I were you, as you say you already have the exams that shouldn't be too much of a problem.

As part of that you need to decide you business name, given you need to move quickly you had better start as a sole trader, it takes a few weeks to get a limited set up properly with bank accounts and so on and while it would be better to have all business money seperate from personal monies a personal account can be set up in a day at need and transfered into a business account later.

Think carefully what you want to call you business, it will cost if you later need to change your name with your insurance and with the ICB.

Having got that far it is only then time to start thinking about letters of engagement - and may I congratulate you on getting that first client!

  • 1159 posts
  • # 96785

Well done Theresa, I never even noticed.

On the point of changing name though, I managed to do it without cost.  ICB held off printing my new practice license until I made other arrangements with insurance and bank etc.

Kris

First Previous - Page 1 of 1 - Next Last
loading