Build and Send Your First Karbon Engagement

Setting up and sending your first client engagement in Karbon can feel like a big step, but this comprehensive guide and checklist will walk you through every stage. From defining your services to linking work and tracking invoices, you’ll gain the confidence to formalize your client agreements and streamline your practice.

Ensure the following foundational elements are in place for a smooth engagement setup:

Step 1: Set Up Service Types

Step 2: Build Your Service Library

Step 3: Create a New Engagement

Step 4: Add Work to the Client Record

Step 5: Link Work to the Engagement

Step 6: Find Your Engagement Invoices

Service Types organize your services into high-level categories (e.g., Tax, Advisory) for better organization and reporting.

What to Do:

☐ Go to Settings > Workflow > Service Types.

☐ Click Add Service Type.

☐ Name each type clearly (e.g., “Tax Services,” “Bookkeeping,” “Client Advisory Services”).

☐ Map existing Work Types to each Service Type.

☐ Click Save.

Tip: You don’t need to map internal Work Types (like admin tasks or team meetings). Leaving them unmapped ensures cleaner reporting.

You’re ready to move on when:

✔️ You've created at least 2–3 Service Types that reflect your firm’s offerings.

✔️ All customer-facing Work Types are mapped to a Service Type.

Your Service Library defines what services your firm offers, how each is delivered, and its billing structure.

What to Do:

☐ Go to Settings > Service Library.

☐ Click Add Service.

☐ Fill in service details:

☐ Add Work Templates that reflect the actual work required to deliver this service.

☐ For each Work Template, set its Work Frequency (e.g., Monthly) and assign Fees (if using Fixed Fee).

☐ Ensure the sum of the Work Item fees equals the total service fee if using Fixed Fee.

Tip: Use clear, client-friendly names and descriptions, as these will appear in the engagement document.

You’re ready to move on when:

✔️ You’ve created at least one complete service in your Service Library.

✔️ Work Templates are linked to the service and reflect accurate timing/fees.

✔️ The service fee total matches the sum of included work item fees (for Fixed Fee).

✔️ You’ve reviewed your setup for clarity and accuracy.

Engagements formalize your agreement with a client, defining the scope, billing, and service delivery terms.

What to Do:

☐ Go to Engagements (left-hand menu) > New Engagement.

☐ Add an internal Engagement Name (e.g., “2025 Tax - Smith & Co.”).

☐ Select the Client (the billing entity).

☐ Set the Engagement Period (Start Date and Renewal Date).

☐ Add an Introduction (a welcome note, team information, or onboarding links).

☐ Add one or more Services from your Service Library.

☐ Review and adjust the Billing Defaults (frequency, fees) pulled from your services.

☐ Add your Agreement Text (terms & conditions, scope, disclaimers).

☐ Choose the Acceptance Method:

☐ Add one or more Signatories required to approve the engagement.

Tip: Your most recently used agreement terms will auto-fill; tailor them as needed for the current engagement.

You’re ready to move on when:

✔️ The engagement is fully built and saved (or sent if ready).

✔️ Services are selected and billing details reviewed.

✔️ An acceptance method is chosen.

✔️ All client signatories are added.

This crucial step ensures the Work Item is created under the correct client Contact Record before it's linked to the engagement.

What to Do:

☐ Navigate to the client’s Contact Record (the client for whom the work will be performed).

☐ Click Add Work.

☐ Choose the correct Work Template (this must match the template linked in your service).

☐ Set the Start Date and Frequency (this must match your service frequency).

☐ Set the Fee Type (Fixed or Time & Materials) to match the service.

☐ Ensure the work is set to Repeat Forever.

☐ Save the Work Item.

Reminder: The work must live within the same Contact selected in the engagement (the client for whom the work is being performed). Otherwise, it won’t be available to link.

You’re ready to move on when:

✔️ You’ve created at least one Work Item for each service within the client’s Contact Record.

✔️ The Work Template, frequency, and fee settings of the Work Item match those of the service.

✔️ The Work Item is set to Repeat Forever.

Linking work ensures that time tracking, WIP (Work-in-Progress), and invoicing align precisely with your services defined in the engagement.

What to Do:

☐ Go to the Work tab inside the Engagement.

☐ Select the Work Items that correspond to the services in your engagement.

☐ Confirm that the Work Template of the Work Item exactly matches the Service.

☐ Click Activate Engagement.

Tip: Linking often fails due to mismatches in Work Template, frequency, or fee settings between the Work Item and the service. Double-check these details before attempting to link.

You’re ready to move on when:

✔️ One or more Work Items are successfully linked to the engagement.

✔️ All linking rules (repeat settings, matching templates, frequencies) are met.

✔️ You’ve activated the Engagement.

Invoices tied to an engagement will be generated automatically through recurring billing once the engagement is active.

What to Do:

☐ Go to Billing > Billing Runs.

☐ Use the billing date to find invoices within Auto Approved Billing Runs.

☐ Click into a billing run to:

Tip: The invoice date and frequency are set during engagement setup. If you don’t see an expected invoice, double-check the engagement’s billing start date and recurring plan settings.

You’re ready to graduate when:

✔️ You’ve located an invoice created from your engagement.

✔️ You understand how invoice timing aligns with the recurring billing schedule.

✔️ You’re comfortable tracking invoice history and upcoming charges from Billing > Billing Runs.

Once your engagement is sent or activated, continue to manage it effectively:

You’ve successfully navigated the entire process of setting up your first engagement, from defining services to linking work and tracking invoices.

Need a hand or want to review your work?