When it becomes necessary for an accounting firm to terminate a client relationship, it is important to memorialize this action in a confirming letter to the client. A letter provides written evidence of when the resignation occurred and instructions to the client regarding needed follow-up on tax, accounting, and other matters about which the firm previously advised the client.
The letter should be factual. It should document when services ended, any outstanding issues regarding work in process, fees owed to the CPA firm, client records, and items requiring follow-up or completion by the client. In most situations the termination should become effective as of the date of the letter.
[Your Firm's Letterhead] [Accounting Firm's Name] [Accounting Firm's Address] [City, State, zip] [Date] [Client's Name] [Client's Address] [City, State, zip] Dear [Client's Name], Subject: Resignation as Accounting Firm and Outstanding Amount Owed to [Accounting Firm's Name] We hope this letter finds you well. We regret to inform you that [Accounting Firm's Name] will no longer be able to continue providing accounting services to your esteemed organization, effective [resignation date]. Due to various circumstances, it is with great disappointment that we have reached this decision. Following an extensive review of our working relationship, we have determined that it is in the best interest for both parties to terminate our association. It is crucial for us to apprise you of certain matters regarding the termination, specifically, the outstanding amount owed to [Accounting Firm's Name], the status of ongoing work in progress, and the return of your organization's financial records. 1. Outstanding Amount Owed: Despite our numerous reminders and the efforts made to resolve the outstanding balance, we regret to inform you that an amount of [Outstanding Amount] remains unpaid as of [Current Date]. This amount primarily pertains to services rendered by [Accounting Firm's Name], which have been diligently provided in accordance with the terms outlined in our initial engagement agreement. We kindly request immediate attention and payment for the outstanding balance to facilitate an amicable resolution. 2. Work in Progress: As per standard practice, our firm has maintained comprehensive records on all ongoing projects and work in progress related to your organization. We commit to ensure a seamless transition of this work to your designated new accounting firm. Upon your confirmation of engaging an alternative service provider, we kindly request you to offer authorization for the transfer of relevant files and records to facilitate a swift and orderly handover. We will gladly cooperate and provide support during this transition phase to guarantee a smooth continuation of your organization's financial operations. 3. Return of Client's Records: As a responsible accounting firm, we have securely preserved all your organization's records in accordance with industry regulations. Rest assured that upon clearance of all outstanding dues, we will promptly deliver these records to your organization's designated representative upon your request. Kindly advise us on the details of the individual responsible for collecting the records and confirm the agreed-upon method of delivery. We genuinely regret any inconvenience or disruption this decision may cause to your organization and assure you that it was made after careful consideration and due diligence. Our primary concern remains the best interests of your organization and ensuring a smooth transition throughout this process. Should you have any further inquiries or require additional information, please do not hesitate to contact us directly. We are committed to providing the necessary assistance in facilitating the termination process and ensuring your satisfaction. Thank you for your attention to this matter. We wish you and your organization continued success in all your future endeavors. Yours sincerely, [Your Name] [Your Title] [Accounting Firm's Name][Your Firm's Letterhead] [Accounting Firm's Name] [Accounting Firm's Address] [City, State, zip] [Date] [Client's Name] [Client's Address] [City, State, zip] Dear [Client's Name], Subject: Resignation as Accounting Firm and Outstanding Amount Owed to [Accounting Firm's Name] We hope this letter finds you well. We regret to inform you that [Accounting Firm's Name] will no longer be able to continue providing accounting services to your esteemed organization, effective [resignation date]. Due to various circumstances, it is with great disappointment that we have reached this decision. Following an extensive review of our working relationship, we have determined that it is in the best interest for both parties to terminate our association. It is crucial for us to apprise you of certain matters regarding the termination, specifically, the outstanding amount owed to [Accounting Firm's Name], the status of ongoing work in progress, and the return of your organization's financial records. 1. Outstanding Amount Owed: Despite our numerous reminders and the efforts made to resolve the outstanding balance, we regret to inform you that an amount of [Outstanding Amount] remains unpaid as of [Current Date]. This amount primarily pertains to services rendered by [Accounting Firm's Name], which have been diligently provided in accordance with the terms outlined in our initial engagement agreement. We kindly request immediate attention and payment for the outstanding balance to facilitate an amicable resolution. 2. Work in Progress: As per standard practice, our firm has maintained comprehensive records on all ongoing projects and work in progress related to your organization. We commit to ensure a seamless transition of this work to your designated new accounting firm. Upon your confirmation of engaging an alternative service provider, we kindly request you to offer authorization for the transfer of relevant files and records to facilitate a swift and orderly handover. We will gladly cooperate and provide support during this transition phase to guarantee a smooth continuation of your organization's financial operations. 3. Return of Client's Records: As a responsible accounting firm, we have securely preserved all your organization's records in accordance with industry regulations. Rest assured that upon clearance of all outstanding dues, we will promptly deliver these records to your organization's designated representative upon your request. Kindly advise us on the details of the individual responsible for collecting the records and confirm the agreed-upon method of delivery. We genuinely regret any inconvenience or disruption this decision may cause to your organization and assure you that it was made after careful consideration and due diligence. Our primary concern remains the best interests of your organization and ensuring a smooth transition throughout this process. Should you have any further inquiries or require additional information, please do not hesitate to contact us directly. We are committed to providing the necessary assistance in facilitating the termination process and ensuring your satisfaction. Thank you for your attention to this matter. We wish you and your organization continued success in all your future endeavors. Yours sincerely, [Your Name] [Your Title] [Accounting Firm's Name]
