Engagement notice

Last updated: 2021-06-21

A statement of commitment is a statement from your bank that gives an account of your company’s total commitment to the bank on a certain date. It shows the company’s total assets and liabilities with the bank for that date.

When we request the statement of commitment, it is to obtain proof of the total commitment that your company has with the bank. Although we can see your bank statement, there may be several accounts with the bank. The engagement statement provides a total and overall picture of all the company’s assets and liabilities.

Commitment notice is required for the financial statements

In order to ensure that everything is correct when we prepare your financial statements, we ask for a commitment statement per your financial statement date. We want everything to be correct and it is important that we have not missed any account or debt that is not visible on your account statement. If you have several banks, you need to ask for commitment notices from all banks.

A commitment notice can cost money depending on which bank you have. Some banks offer the commitment notice and others charge a fee. However, we know that this fee can often be negotiated away if you as a customer stand your ground as the bank would like to maintain a good relationship with you as a customer. We recommend that you contact your banker to see if they will remove the charge to receive the commitment notice free of charge.