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.
Dear [Client's Name], I hope this letter finds you well. After careful consideration and assessment of our business relationship, we have made the difficult decision to resign as your accounting firm, effective [resignation date]. During our tenure as your accounting firm, we have strived to provide you with the highest level of professionalism and expertise in managing your financial records. However, it has come to our attention that there is an outstanding amount owed to our firm for the services rendered. As per our records, the total outstanding balance stands at [amount owed]. We kindly request that you settle this outstanding balance promptly to ensure a smooth transition of our services. Any delay in payment may affect the timely transfer of your financial records and work in progress. We understand that unforeseen circumstances can arise, which may have caused the delay in payment. If this is the case, we urge you to communicate with us immediately so that we can find an amicable solution. Additionally, in order to facilitate the transition, we ask that you provide us with a written consent to release your financial records to the new accounting firm of your choice. This will enable them to efficiently continue the work in progress and ensure the continuity of your financial management. Please note that once the outstanding payment is settled and the consent for record release is received, we will promptly arrange for the transfer of all relevant documents and work papers to the nominated accounting firm. We deeply regret any inconvenience this may cause you, as we understand the importance of maintaining a strong business partnership. However, we believe that this decision is in the best interest of both parties at this time. Should you have any questions or require further clarification regarding this matter, please do not hesitate to contact us. We remain committed to helping you in any way we can during this transition period. Thank you for the opportunity to serve you over the years. We wish you continued success and growth in your business endeavors. Sincerely, [Your Name] [Accounting Firm Name] [Contact Information]Dear [Client's Name], I hope this letter finds you well. After careful consideration and assessment of our business relationship, we have made the difficult decision to resign as your accounting firm, effective [resignation date]. During our tenure as your accounting firm, we have strived to provide you with the highest level of professionalism and expertise in managing your financial records. However, it has come to our attention that there is an outstanding amount owed to our firm for the services rendered. As per our records, the total outstanding balance stands at [amount owed]. We kindly request that you settle this outstanding balance promptly to ensure a smooth transition of our services. Any delay in payment may affect the timely transfer of your financial records and work in progress. We understand that unforeseen circumstances can arise, which may have caused the delay in payment. If this is the case, we urge you to communicate with us immediately so that we can find an amicable solution. Additionally, in order to facilitate the transition, we ask that you provide us with a written consent to release your financial records to the new accounting firm of your choice. This will enable them to efficiently continue the work in progress and ensure the continuity of your financial management. Please note that once the outstanding payment is settled and the consent for record release is received, we will promptly arrange for the transfer of all relevant documents and work papers to the nominated accounting firm. We deeply regret any inconvenience this may cause you, as we understand the importance of maintaining a strong business partnership. However, we believe that this decision is in the best interest of both parties at this time. Should you have any questions or require further clarification regarding this matter, please do not hesitate to contact us. We remain committed to helping you in any way we can during this transition period. Thank you for the opportunity to serve you over the years. We wish you continued success and growth in your business endeavors. Sincerely, [Your Name] [Accounting Firm Name] [Contact Information]
