Accounting technology / Glossary / Engagement letter software

What is engagement letter software?

Definition

Engagement letter software builds engagement letters from templates and service schedules, sends them for e-signature with an audit trail, and stores the signed copy against the client record. Most products combine letters with proposals and billing, and several send letters in bulk when terms change or services renew each year.

Also calledletter of engagement softwaree-sign engagement letters

Compare the softwareBest practice management software for accounting firms →All 15 practice management vendors →

Compulsory (ICAEW): Audit engagements
ACCA rule: Signed copy kept on file
Parts: Letter, schedules, terms, privacy

What an engagement letter must cover

ICAEW's helpsheet, last updated on 10 March 2026, says a complete engagement letter comprises the letter itself, schedules of the services provided and terms of business, with a privacy notice added as necessary; a letter is compulsory for audit work. ACCA requires firms to send each client a written letter of engagement defining the scope and terms before work starts, or as soon as practicable after, to include the privacy notice and to keep a copy signed by the client. Software keeps the service schedules as reusable templates, records who signed and when, and reissues letters when terms change. FigsFlow offers a free letters plan for one person and up to 20 letters a year. Engager covers letters of engagement and disengagement from £9 a month plus VAT. FuseSign, an e-signature tool for accountants, starts at A$48 a month excluding GST with 32 signing credits. Karbon and Canopy send engagement letters in bulk, and Xero Practice Management produces branded engagement letters.

Common questions

Is an engagement letter a legal requirement?+

ACCA requires members in practice to send every client a letter of engagement and keep a signed copy. ICAEW makes a letter compulsory for audit work and advises members to consider one for every engagement.

Can engagement letters be signed electronically?+

Engagement letter software sends the letter by link, records the signer, time and device in an audit trail, and stores the signed PDF against the client record.

How much does engagement letter software cost?+

FigsFlow has a free plan for one person and up to 20 letters a year, Engager starts from £9 a month plus VAT, and FuseSign from A$48 a month excluding GST.

What goes into an accountant's engagement letter?+

ICAEW lists the engagement letter, schedules of the services provided and terms of business, plus a privacy notice where needed. ACCA requires the scope of responsibilities, the contract terms and the firm's privacy notice.