"Preparing correspondences" could be a grammatically correct
phrase, but it would be fairly unusual. This phrase would be
appropriate only if the entity modified by the phrase is actually
engaged in two or more different correspondences at the same time.
For example, "Those four clerks are engaged in preparing
correspondences with all of our ambassadors." For a single person
to be preparing "correspondences", she would have to be writing or
typing at least two different messages over the same time period,
and this is not the way most people work. Under most circumstances,
the singular "correspondence" is considered a collective noun that
can include more than one individual message.