How To Edit Engagement Letters in Drake Software

Drake tax software offers several features to manage e-filing and tax preparation. One such useful feature is “Engagement Letters.”

Editing engagement letters in Drake Software is a quick process, but it’s important to get it right. These letters set the tone for your relationship with clients, so making them clear and personalized can go a long way. Whether you’re adjusting the wording for specific clients or updating details for a new service, it’s something every tax professional should know.

In this blog, we’ll walk you through the steps to modify engagement letters in Drake. You’ll be able to tweak, save, and use them with ease, ensuring your communication is to the point every time.

Before moving forward, let’s first understand what engagement letters are in Drake Software.

What are Engagement Letters in Drake Tax Software?

Engagement letters are formal documents outlining the scope of work between you and your client. With the help of these letters, you can efficiently convey what services you will provide to your client and on what terms.

These documents help set clear expectations and avoid misunderstandings. In Drake, you can customize these letters to fit your tax practice requirements.

Let’s see how you can customize engagement letters in Drake tax software without further ado.

Generating an Engagement Letter for a Single Client

• Open the client’s tax return in View Mode.
• From the data entry screen, go to the MISC tab.
• Open the LTR Letter Customization screen.
• In the Engagement Letter dropdown, select Yes.

Customizing Engagement Letters Globally for All Clients

• From Drake’s home screen, go to Setup > Options.
• Click on the Client Communications tab (or Optional Documents tab in Drake18 and earlier).
• Check the box to Include an engagement letter with returns.

Batch Generate Engagement Letters for Multiple Clients

• From the Drake home screen, select Tools > Client Communications > Letters.
• (For Drake21 and earlier: go to Tools > Letters > Letters.)
• Select Engagement, then click Next.
• Add client ID(s) to generate for specific clients.
  • If you want to create engagement letters for multiple clients, enter each ID.
  • To create letters for all clients, leave the Add Client field blank, then click Next.
• Apply any filters or sorting options as needed, then generate the letters.

Setting Up Electronic Signatures for Engagement Letters

• Go to Setup > Communications Editor.
• Select Setup > Page Layout.
• At the bottom left, check the box for Use E-sign on Engagement Letters.

Adjusting Signature Position

• Select the package type (e.g., 1040, 1120) from the dropdown.
• Adjust the Top and Left values to position the signature correctly.
  • Signature 1 adjusts the taxpayer’s signature.
  • Signature 2 adjusts the spouse’s signature (if applicable).
• After adjusting, click Update to save.
• Repeat this for any other package types as needed.

How to Electronically Sign Engagement Letters in Drake

• You can sign in the office using a signature pad or use e-Sign Online via Drake Portals.
• If you’re using Drake Portals, make sure to add the engagement letter to the EF signature set.

Simplify Engagement Letter Editing with Drake Hosting

Editing engagement letters in Drake Software becomes easier with Drake Hosting. You can access your software from anywhere, letting you make changes on the go.

Whether you need to update terms, adjust formatting, or customize templates, hosting makes the process faster and more efficient. You don’t have to worry about system slowdowns or software compatibility issues.

Conclusion

Editing engagement letters in Drake Software doesn’t have to be complicated. With the steps outlined, you can customize your letters quickly and accurately, ensuring they match your firm’s needs. A well-crafted engagement letter sets clear expectations and builds trust with your clients.

If you’re using Drake Software, why not take your efficiency to the next level with Drake hosting? By hosting Drake in the cloud, you can enhance software accessibility and scalability, enabling seamless performance and growth.

At Ace Cloud Hosting, we offer secure infrastructure and a shared workspace for Drake software to simplify your tax workflow, work from any device, and improve your client interactions. Start a 7-day free trial of hosted Drake software.

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