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Managing Engagements in TaxFolder

Updated: 2021-03-17

Engagements in TaxFolder track interactions with your clients. A client must have an active engagement for you to request signatures and approval from your client, or ask your client upload documents.

Engagements Properties

The relationship between clients and engagements is one-to-many. Each client can have more than one engagement, but each engagement is only ever associated with one client.

When it comes to documents, each engagement can hold many documents and signature/approvals requests. For example, when you print from TaxCycle, you can select an existing engagement to add the documents. You can use a single engagement as a container to collect and hold all the documents related to a specific client engagement for the year.

Each engagement has associated properties:

  • Return Type—The type of tax return the client is engaging you to prepare. For example, T1 is for personal tax returns and T2 for corporate tax returns. When TaxCycle creates an engagement through its print process, it automatically sets this property to the same as the file from which the form was printed. If you create the engagement through the TaxFolder Client Dashboard, you can choose other options, including "Legal," "Other" and "Forms" that you can't print from TaxCycle.
  • Tax Year—The tax year or tax year end to which the engagement applies. For example, 2020 for a T1 or 2020/12/31 for a T2 tax year end. When TaxCycle creates an engagement through its print process, it automatically sets this property to the same year or year end as in the TaxCycle file from which the form was printed.
  • Engagement Label—The label can be any text you wish. When TaxCycle creates an engagement through its print process, it automatically enters the client’s name as the label. However, you can enter other text in the field if you wish. Or you can select an existing label from the list. In the TaxFolder Client Dashboard, you can enter any text you want for a label when creating the engagement.

Add an Engagement on the Client Dashboard

When you add a new client—whether through adding the client through the Client Dashboard or requesting a signature from TaxCycle—TaxFolder creates an engagement. 

To add an engagement for an existing client in TaxFolder:

  1. Go to the Client List tab in the Client Dashboard.
  2. Find the client in the list and click the Add Engagement button.
    Screen Capture: Add Engagement from the Client Dashboard
  3. TaxFolder displays the client’s name, email address and phone number (if available). (If the phone number does not appear here, you can add edit it in the client record. See the Managing Clients in TaxFolder help topic.)
  4. Select the Return Type. The type of tax return the client is engaging you to prepare. For example, T1 is for personal tax returns and T2 for corporate tax returns. When TaxCycle creates an engagement through its print process, it automatically sets this property to the same as the file from which the form was printed. When you create the engagement through the Client Dashboard, you can choose other options, including "Legal," "Other" and "Forms" that you can't print from TaxCycle.
  5. Select the Tax Year. The tax year or tax year end to which the engagement applies. For example, 2000 for a T1 or 2020/12/31 for a T2 tax year end. When TaxCycle creates an engagement through its print process, it automatically sets this property to the same year or year end as in the TaxCycle file from which the form was printed. When adding an engagement through the TaxFolder dashboard, you can only select from a list of years.
  6. Enter an Engagement Label. The label can be any text you wish. When TaxCycle creates an engagement through its print process, it automatically enters the client’s name as the label. However, you can enter other text in the field if you wish, or you can select an existing label from the list. In the TaxFolder Client Dashboard, you can enter any text you want for a label when creating the engagement.
  7. Click the Add button.
    Screen Capture: Add New Engagement
  8. At this point the client shows on the Pending tab in the Client Dashboard. You must now assign the engagement to a preparer before you can request signatures from TaxFolder.

Assign an Engagement to a Preparer

It is important to assign an engagement to a preparer before you start working on it in TaxFolder. (This automatically occurs when you create the engagement from TaxCycle.) You cannot send a request for signatures from TaxFolder unless the engagement is assigned to a preparer (even if you are the only preparer with access to the TaxFolder account).

  1. Go to the Pending tab.
    Screen Capture: Pending Tab
  2. In the Preparer column, choose a preparer from the links.
  3. Click Save to assign the engagement.
    Screen Capture: Save Assignment
  4. TaxFolder sends an email to the preparer informing them they have a new engagement.
  5. The preparer can now use the engagement to send documents for approval or signature. The engagement now appears on the In Progress tab in the Client Dashboard.

Add an Engagement from the Client Record

  1. On the Client Dashboard, click on the client’s name to open their record.
    Screen Capture: Select Client
  2. At the top of the client record, click the Add Engagement button.
    Screen Capture: Add Engagement Button
  3. TaxFolder displays the client’s name, email address and phone number (if available). (If the phone number does not appear here, you can add edit it in the client record. See the Edit Client Info in TaxFolder help topic.)
  4. Select the Return Type. The type of tax return the client is engaging you to prepare. For example, T1 is for personal tax returns and T2 for corporate tax returns. When TaxCycle creates an engagement through its print process, it automatically sets this property to the same as the file from which the form was printed. When you create the engagement through the Client Dashboard, you can choose other options, including "Legal," "Other" and "Forms" that you can't print from TaxCycle.
  5. Select the Tax Year. The tax year or tax year end to which the engagement applies. For example, 2000 for a T1 or 2020/12/31 for a T2 tax year end. When TaxCycle creates an engagement through its print process, it automatically sets this property to the same year or year end as in the TaxCycle file from which the form was printed. When adding an engagement through the TaxFolder dashboard, you can only select from a list of years.
  6. Enter an Engagement Label. The label can be any text you wish. When TaxCycle creates an engagement through its print process, it automatically enters the client’s name as the label. However, you can enter other text in the field if you wish, or you can select an existing label from the list. In the TaxFolder Client Dashboard, you can enter any text you want for a label when creating the engagement.
  7. Click the Add button.
    Screen Capture: Add New Engagement
  8. At this point, the client record displays the new engagement with a warning that you must still assign the engagement to a preparer before you can request signatures from TaxFolder. Click the Assign now link to go to the Pending tab in the Client Dashboard to complete this step.
    Screen Capture: New Unassigned Engagement

Switch Between Engagements on the Client Record

When you click on a name in the Client Dashboard, it takes you to the client record. This is the same page where you edit details of an engagement. 

  1. The first box on the page contains details about the client. The rest of the page shows details of the engagement selected in this box.
  2. If the client has multiple engagements, the drop-down menu allows you to switch between engagements without leaving the page.
  3. This menu shows all engagements associated with the client, including pending and completed engagements from all years. If the client has multiple engagements from the same year and return type, TaxFolder adds a number to the end of the item to help you tell the engagements apart.
    Screen Capture: Switch Engagements

Modify or Delete an Engagement

To modify the properties of an existing engagement:

  1. On the Client Dashboard, click on the client’s name to open their record.
    Screen Capture: Select Client
  2. Scroll to the Engagement Settings box at the bottom of the page.
  3. Click the Change Tax Year button to move the engagement to a different year. In the pop-up that appears, select the new year and click the Change Tax Year button to save your changes.
  4. Click the Change Label button to change the text for a label. In the pop-up that appears, type your changes and click the Change Label button to save your changes.
  5. Click the Change Status button to move the engagement between the Pending, In Progress and Completed states. In the pop-up that appears, select the new state and click the Change Status button to save your changes. Note that you cannot send a request for e-signatures unless the engagement is In Progress.
  6. Click the Delete button to remove the engagement permanently. This does not delete the client record, just the engagement. In the pop-up that appears, click the Delete button to confirm.
    Screen Capture: Engagement Settings

Complete an Engagement

To complete an engagement:

  1. On the Client Dashboard, click on the client’s name to open their record.
    Screen Capture: Select Client
  2. Click the Complete Engagement button.
    Screen Capture: Complete Engagement Button
  3. TaxFolder moves the client to the Completed tab on the Client Dashboard.
    Screen Capture: Completed Tab in Dashboard
  4. You can no longer request e-signatures from this client. If you would like to perform additional actions, use the engagement settings to change the status back to In Progress (see above).

Add Preparer Notes to an Engagement

TaxFolder includes an area where you can add notes to the engagement. This is a plain-text box visible only to the preparers

  1. On the Client Dashboard, click on the client’s name to open their record.
    Screen Capture: Select Client
  2. Scroll to the Preparer Notes section.
  3. Type a note. Be aware that TaxFolder does not track who created the note or the date. We suggest creating a convention in your firm to enter the name and date in this field. Please note that only preparers with Admin access or those assigned to the engagement can modify existing notes.
  4. Click Save Notes.
    Screen Capture: Preparer Notes

Print Preparer Notes

At the top of the client record, click the Print button. This prints only the client details and preparer notes.

Screen Capture: Print Button

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