Creating a Letter of Engagement from within Xero.​

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For bookkeepers wishing to provide a letter of engagement to their clients in the same format as they'll be presenting their Xero reports, it's simple to set up. 

We run this report each year for our client's and review/update the scope of work.  They're then emailed for signature using Adobe Sign. 

 

Set up a report from My Xero.

• Go to My Xero

• Select Reports

• On the right, click "New Template"

• Change the date on the right to "this financial year" & click update.

• Click "Add report" and select "Blank report".

• Change the Untitled Report heading to "Letter of Engagement"

• Click Edit Layout, near the bottom.

• Then up the top click the T for text.

• On the right side, change from "numbered" to "standard"

• Now, copy and paste your letter of engagement into the report where it says "enter text".

• Our letter of engagement says "Dear ......."  If you'd like to add the director/owner, go to the right and click the Insert Field and select "Signature". 

• We also add a section which states the entities covered by this engagement and use the fields "legal or trading name" and "Australian Business Number" to populate these fields. 

• At the bottom of the letter, we have a line for the signature and have the field "signature" underneath it so that it pulls in the owner/directors name so that they know where to sign. 

• When you're happy with it, click "Done" on the top right and save as "ready to use" on the bottom right.  Enter the template name and save. 

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Run your Letter of Engagement for a client.

•  Go to your client in Xero.

• Reports > All reports > Advisor.

• Find the report you've set up.

• It will show incomplete fields, which you'll need to set up once for each client.  Click "view all" and "edit" then add the director/owner's name & save.  Then click "return to dashboard"

• Go through the process again...reports > all reports > advisor and find the report you've set up.

• Publish (and deselect the contents page).  Save

• Now export to PDF and attach to your chosen e-sign software.  (We use Adobe Sign). 

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TPAR and PSAR Declarations.

We use this same process to do declarations for TPAR and PSAR.  Each year, we just run these reports out of Xero and provide them with the supporting documents for our client's to sign off on.