CPAs provide a valuable service to organizations. There are times however, when a CPA wishes to disengage from the CPA-client relationship. A respectful and professionally written CPA client termination letter is a good way to end the relationshipand to avoid potential liability. Send the letter by certified mail with return receipt requested.
Content and Format
Include a clear disengagement statement and the effective date in the opening paragraph of the CPA client termination letter format. State the reason for the termination, such as unpaid bills, suspicion of fraudulent activity, incomplete or inaccurate information, a lack of customer responsiveness, or a conflict of interest. Be specific and use examples for which you have documented proof. List work in progress and any deadlines the client should be aware of for completed, in progress, or unfinished work. Before sending, review the letter carefully and delete references that are disrespectful, antagonizing or fail to add meaning or substance to the letter.
The client addressed in this example is the owner of a small business. The CPA begins the letter with a statement of appreciation followed by her decision to end the professional relationship. The CPA offers to continue providing services to the client during the transition in the CPA client termination letter sample.
Thank you for entrusting me to serve as your CPA over the last 5 years. It is my belief that the relationship has been mutually beneficial. After careful consideration, I have decided to accept a position with a CPA firm that handles large customer accounts. On May 1, 2013, I will be closing my independent CPA business in order to pursue this new career path. As of this date, I will no longer be able to provide accounting services to your firm.
Your personal income tax return (1040) was filed on March 1, 2013 and your estimated tax payments for the first quarter were filed March 15, 2013. Your next estimated tax payment is due on August 15, 2013. The corporate income tax return (Form 1120S) for Graphics Unlimited was due on January 15, 2013. Per your instructions, I filed an extension on January 11, 2013. Your corporate income tax return is now due on August 15, 2013. I am sending the extension request, which you will need to give to your new CPA.
With your approval, I will continue to provide your company with CPA services until May 1, 2013. During this time, I will update and monitor your online financial accounting system, oversee the company payroll, and prepare your monthly accounting reports. I have sent all original records pertaining to the work above by certified mail. You are in possession of all other original documents as per our contract.
I strongly urge you to seek the services of another professional CPA as soon as possible. I have enjoyed working with you over the years and watching your company grow and flourish. I will be happy to answer any questions you have during this transition. I wish you and your company success going forward.
Ms. Catherine Cates
Newberry CPA services Inc.