Checklist

Virtual CFO engagement letter checklist

What a monthly CFO engagement letter should cover. Tick each point before the client signs.

• Parties and dateYour firm, the client entity, who signs for each, date of the letter.
• Form of engagementShared (ongoing, part-time), interim (for a set period) or project (one assignment).
• Where the work is doneOff-site (virtual), on-site or hybrid; how many meetings are included.
• Services in scopeTick only what you will deliver: monthly management reporting; budgeting and forecasting; cash flow and working capital; profitability and cost review; accounting advisory.
• Outside the scopeTax and statutory compliance (GST, TDS, income tax, company law filings), statutory audit and internal audit, unless agreed separately in writing.
• Frequency and calendarMonthly or quarterly; the books-close day and the report date.
• Client responsibilitiesBooks kept and closed by the client's accountant by the agreed day; information complete and accurate; management takes the business decisions.
• Fees and billingFee per month or quarter plus GST, billed in advance; out-of-pocket expenses only with prior approval.
• Term and noticeStart date, end date if any, and notice period (30 days is common).
• Confidentiality and dataHow client data is held and who in your firm sees it.
• IndependenceConfirm whether your firm is also the auditor and the safeguards agreed.
• Signed and filedBoth signatures, a copy on the client file, and a date to review the scope each year.