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.
Content: [Accounting Firm's Letterhead] [Accounting Firm's Address] [City, State, Zip Code] [Date] [Client's Name] [Client's Address] [City, State, Zip Code] Subject: Resignation Letter and Outstanding Amount Owed Dear [Client's Name], I hope this letter finds you well. It is with regret that we inform you of our intention to resign as your accounting firm, effective [date]. We understand the importance of maintaining a professional relationship, and it is our duty to inform you of this decision. After careful consideration, we have found it necessary to terminate our services due to outstanding financial obligations that remain unpaid by your company. Despite our numerous attempts to collect payment on the overdue amount, we have been unsuccessful in resolving this matter with you. The total outstanding amount owed to our firm is $[outstanding amount], which includes fees for professional services rendered, work in progress, and other expenses associated with your company's accounting needs. We kindly request prompt settlement of this outstanding balance to avoid any further delays or inconvenience. Moreover, as part of our resignation, we want to ensure a smooth transition for your accounting needs. Therefore, we request your immediate cooperation in providing all necessary documentation and records related to your financial accounts, including but not limited to bank statements, invoices, receipts, and general ledgers. These records are crucial for the continuity of your financial operations and for the incoming accounting firm that you will engage in the future. We kindly ask that you make arrangements for the return of any company-owned property or assets currently in our possession, including any electronic or physical documents, software, or access credentials. It is essential for the confidentiality and security of your financial information that all relevant materials are promptly returned to your company. Should you require any assistance in the transition process or have any questions regarding the outstanding amount, please feel free to contact our office at [accounting firm's phone number] or via email at [accounting firm's email address]. We remain committed to supporting you during this transition and ensuring your financial interests are handled with the utmost professionalism. We sincerely regret any inconvenience this may cause and hope that you understand our position in this matter. Furthermore, we genuinely appreciate the opportunity to have served as your accounting firm and wish you all the best in your future endeavors. Yours sincerely, [Your Name] [Your Title] [Accounting Firm's Name] [Accounting Firm's Contact Information] --- Different types of South Carolina Resignation Letter from Accounting Firm to Client with Reference to Outstanding Amount Owed Firm, Work in Progress, and Return of Client's Records could be classified based on the context or reasons for resignation. Some potential variations could include: 1. Resignation Letter due to Outstanding Amount Owed and Failure to Follow Accounting Recommendations: This type of letter may mention outstanding financial obligations and the lack of compliance with accounting best practices, leading to the resignation of the accounting firm. 2. Resignation Letter in Case of Unresolved Disputes and Pending Litigation: This variation could involve the accounting firm expressing its decision to resign due to ongoing disputes or unresolved legal matters that hinder the professional relationship with the client. 3. Resignation Letter due to Non-Cooperation in Providing Essential Records or Information: This type of resignation letter would highlight the client's failure to provide necessary documentation or cooperate in sharing vital financial records, necessitating the firm's resignation. It is important to note that the content presented above can be modified and tailored to suit the specific circumstances of each resignation situation.
