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. As an accounting firm dedicated to providing exceptional services, it is with mixed emotions that I am writing to inform you of my resignation from [Accounting Firm's Name]. I believe it is essential to acquaint you with the outstanding amount owed to our firm, the status of work in progress, and the process for returning your records. Outstanding Amount Owed: First and foremost, I would like to address the matter of the outstanding balance that remains unpaid for the accounting services provided by our firm. According to our records, an amount of [amount owed] is currently outstanding. We kindly request that this amount be settled in a timely manner. Please note that failure to do so may result in additional late payment charges as outlined in our previous communications. Work in Progress: Regarding any ongoing projects or work in progress, rest assured that we are committed to ensuring a smooth transition. We understand that continuity is crucial for the uninterrupted operation of your business. Our team will diligently prepare a comprehensive handover report, detailing the current status of all outstanding accounts and projects, ensuring that your interests and financial records remain well-maintained during this transition period. Return of Client's Records: I want to assure you that maintaining the confidentiality and security of your records has always been a top priority for our firm. We will promptly return all your documents, financial statements, receipts, and other relevant records in our possession. In order to facilitate a seamless handover, we kindly request that you provide us with written consent to transfer your records either through physical pickup or secure electronic means. Our aim is to ensure a seamless transition and guarantee the safekeeping of your confidential information. Types of Resignation Letters: 1. Standard Resignation Letter: A general resignation letter clearly stating the resignation, outstanding amount owed, work in progress, and return of records. 2. Resignation Letter with Payment Plan: This type of letter can be used when the outstanding amount is substantial, and the accounting firm and client agree upon a payment plan to settle the balance. 3. Resignation Letter with Offer of Assistance: If the accounting firm is willing to provide transition support or limited ongoing assistance after the resignation, this letter can outline the specific terms of assistance to ensure a smoother handover. In conclusion, I would like to express my gratitude for the opportunity to work with you and your esteemed company. I apologize for any inconvenience caused by my decision to resign but rest assured that our primary goal is to ensure all loose ends are tied before the formal completion of our engagement. If you have any questions or require additional information during this transition, please do not hesitate to contact me directly. Thank you for your understanding and cooperation. Sincerely, [Your Name] [Your Title] [Accounting Firm's Name]
