Introducing Proposals and Engagement Letters (ELs): a smarter way to approach clients and get paid

We’re excited to announce that Proposals and ELs (engagement letters) are now available for all TaxDome users. This huge new update allows you to set expectations, pitch your services and explain the value they bring, and secure timely payments — all in one place.

In this article, we’ll cover everything you need to know about Proposals and ELs, including: 

• What they are
• The benefits for your firm
• Customization options
• What the process looks like for clients
• Future plans and updates

Let’s dive in.

What are Proposals and ELs?

Proposals and ELs are a brand new TaxDome feature that replaces our Contracts functionality. Now, you can create fully customizable proposals and engagement letters, add invoices or a price list of services, and secure payment and e-signatures — all in one seamless process. 

All your existing TaxDome contracts will be migrated to the new interface, and you’ll still be able to use your contract templates in the “terms” section of Proposals and ELs, which you can rename to whatever you like.

How will Proposals and ELs benefit your firm?

Proposals and ELs have been designed to make it easier to engage with clients, formalize relationships and secure payment for your services. Let’s explore the key benefits for your firm. 

1. Elevate your brand

The accounting industry has never been more competitive. There are now almost 100,000 accounting firms in the US alone. Unlike a few years ago when most firms’ reach was limited by their geographic location, now modern accounting businesses can provide services to clients nationwide. 

At the same time, expectations have never been higher. Clients now expect:

• Seamless digital interactions with your firm
• Personalized communications
• Mobile-friendly processes

So how do you stand out from the crowd and convince clients to work with your firm over any other? The answer is with TaxDome Proposals and ELs. 

This new update allows you to create highly polished and personalized proposals and engagement letters that help set you apart, set expectations from the start and create a great first impression.

Proposals and ELs showcase your brand in the best possible light. Potential clients will be able to see exactly who you are, what you offer and how much it will cost. They’ll also see the steps they need to take to move forward. Everything is designed to be as customizable, simple and clear as possible — on desktop or mobile. 

2. Get paid faster

Getting paid should be easy, but with nine out of ten accountants claiming that they still have to chase clients for late payment, it’s clear that legacy processes aren’t working. Traditionally, accountants bill clients after the work has been completed. This leads to all kinds of problems, from wasted time and effort to strained relationships and inefficient cash flow. 

With Proposals and ELs, you can avoid these issues altogether by: 

• Taking payment upfront upon the client e-signing the proposal
• Requiring clients to provide payment details in order to sign
• Setting up automated payment collection for recurring invoices

This unleashes several benefits for your firm, allowing you to save the time and money wasted on chasing clients for outstanding payments, improve your sales efficiency, drive revenue and streamline business operations. 

3. Replace yet another app

As a complete practice management platform, TaxDome allows your firm to replace multiple apps and build a unified tech stack. Now, with Proposals and ELs, you can consolidate your tech stack even further. 

Instead of jumping between TaxDome and your standalone proposal software, you can manage everything in one place: workflow, clients, reporting, tasks, communications — and now proposals.

This makes your life much easier — your team only has to learn how to use one piece of software, not multiple programs. And by eliminating yet another software license, you’ll save money too. Proposals and ELs are available to all TaxDome customers at no additional cost. 

And with all your data in one place, you’ll enjoy seamless workflows, simpler processes and more effective reporting. 

4. Customize everything

We’ve made Proposals and ELs highly flexible, allowing you to adapt them to meet the unique needs of your firm and clients. Everything is customizable, from what your clients see to how they pay. 

You can customize the structure of your proposal to include or exclude key elements. If your focus is on marketing your firm to potential clients, you can include an introduction and a list of your services and costs. Your client will have all the information they need to assess whether they want to work with you, but they won’t be asked to sign the document (you decide what you want to call it) or provide payment details.

If you want to take a more formal approach, you can send just an engagement letter and invoice. The client will be asked to review the document, e-sign it and provide payment details (if you include an invoice). Alternatively, you can send the client a proposal and an engagement letter together — the choice is yours.

You can use rich multimedia elements to enhance your proposals and promote your brand, including your firm’s logo and embedded YouTube videos. The editor allows you to choose from different font sizes and other styling options. 

You also have complete control over how and when your clients pay for your services. For example, you can: 

• Add one-time or recurring invoices, or both
• Set up automatic payments
• Choose your preferred payment method
• Ask for a deposit

Alternatively, you can choose to add itemized services without creating invoices. This way, clients can see what you offer and how much you charge without having to commit to paying an invoice. You can create invoices later on with a single click.

How Proposals and ELs work for your clients

We’ve explored some of the features, benefits and customization options from your firm’s side. Now, let’s look at how this process works for your clients. 

First of all, Proposals and ELs deliver on your clients’ expectations of a seamless digital experience. And with the TaxDome client mobile app (available on iOS and Android), they can review, sign and set up payment for proposals anywhere, anytime.

Once you’ve sent a proposal, the client receives an email and a notification in TaxDome. By clicking on the email link or notification, they can review the proposal and complete the following steps: 

• If they agree to the terms, they can proceed to make a secure payment
• Next, they e-sign the proposal
• After signing, they receive a confirmation notification 

The result is a seamless digital experience that guides clients through every step of the process — from reviewing the proposal to e-signing. And with expectations and terms set out from the start, you have the foundations in place for successful client relationships.

What’s next for Proposals and ELs?

We plan to add some exciting new functionality to Proposals and ELs in the near future, namely service “packages”. 

Essentially, this update will allow you to combine services in bundles and let clients choose which package they want. You can expect this release sometime during Q1 2024. Stay tuned for more information!

If you have any suggestions for improving Proposals and ELs, let us know on the Feature Request Board! We’re always interested to hear from you