How to Write a Letter of Disengagement with Free Template

As a professional accountant, there may come a time when you need to end an engagement with a client. A conclusion to a client relationship could be due to several reasons, such as a realignment of your firm's services, a conflict of interest, or non-compliance with agreed-upon terms by the client. 

Additionally, many accountants find it difficult to fire a client. Your services as an accountant, bookkeeper, or CPA often mean building long-term, personal partnerships and ending one should be straight-forward - but delicate. 

Writing a letter of disengagement is a professional way to handle this transition, ensuring clarity and maintaining a good relationship with the client.

We’ll walk you through a few key elements and tips to write the perfect  letter of disengagement 

1. A Clear Statement of Termination: Begin the letter with a firm but courteous declaration that, due to certain circumstances and after careful consideration, your firm will regrettably be unable to provide its services to the client after a specified date. This decision, while challenging, has been reached to ensure that both parties can explore alternative options that better align with their respective goals and objectives. Your firm remains committed to maintaining a positive and professional relationship with the client during this transition period. It will provide any necessary support to facilitate a seamless handover of responsibilities.
2. Details of Outstanding Work: Provide a comprehensive overview of any ongoing projects or tasks scheduled to be completed before the termination date. It is crucial to include specific details and milestones to understand the current and upcoming responsibilities clearly.
3. An In-Depth Overview of Client Responsibilities: Begin by clearly stating the client's outstanding obligations, such as any final payments due or any specific data or information they must provide. This includes emphasizing the importance of timely completion of these tasks to ensure a smooth and successful project outcome. The client and the service provider can better understand their respective roles and responsibilities throughout the project lifecycle by providing a comprehensive and detailed overview.
4. A Disclaimer: Safeguard your firm legally by including a comprehensive clause that limits liability for any potential issues arising after the disengagement date. This clause will provide an added layer of protection, ensuring that your firm is not held accountable for unforeseen circumstances beyond the agreed-upon disengagement period. By including this detailed disclaimer, you can proactively address any concerns and mitigate potential risks, allowing your firm to operate with peace of mind.
5. Positive Closure: Conclude positively, expressing heartfelt wishes for the client's future endeavors. Remember, just because it wasn't the right fit for you doesn't mean you have to burn bridges.
6. (Optional:) When appropriate, you can refer a client to a firm better suited to their needs. Be clear on the reasons for the referral and provide relevant details about the client's requirements to facilitate a seamless handover. Effective communication between the current and prospective firms is key to maintaining the client's trust and ensuring a positive outcome for all parties involved. 

Remember to retain your professionalism throughout the letter, keeping it courteous and objective. Make sure your letter is received well by giving ample notice, providing a clear reason while you are ending the relationship and clearly summarizing the next steps your client needs to take.

Always send a letter of disengagement  via a method that provides a delivery confirmation. Disengagement letters are not only a professional courtesy but also serve as a valuable document in your firm's risk management strategy.

Client Termination Letter Free Template 

[Your Name]

[Your Accounting Firm's Name] 

[Your Address] 

[City, State, Zip Code] 

[Email Address] 

[Phone Number]

[Date]

Dear [Client's Name],

Over the last [time you’ve been working together, i.e., 2 years], we have enjoyed providing you with quality service and value your loyalty to our firm. Regrettably, we are writing to notify you that we’re unable to continue providing our services to you as of [termination date].

We have made the difficult decision to remove monthly bookkeeping services from our service portfolio for all clients. Please know that this decision was made after careful consideration and is in no way a reflection of our satisfaction with our partnership. 

We understand you will need to  seek a new bookkeeper and apologize for any inconvenience. To ensure a smooth transition, we are happy to assist in transferring any necessary records or providing guidance to your new service provider as needed.

At the time of this letter, our firm has the following work in progress for [client name] that will be completed by [date]:

[Description of the work in progress that the firm will still complete for the client]

Please note that there are outstanding fees for the services rendered up to this point. Please settle these fees by the termination date noted above. If you have any questions regarding the outstanding balance, please do not hesitate to contact us.

Thank you for your understanding and cooperation during this transition period.We thank you for the opportunity to serve you.

Warm regards,

[Your Name] [Your Position/Title] [Your Accounting Firm's Name]