Engagement Letters That Save You
Engagement letters aren't just paperwork, they're your best defense against scope creep. In this episode, Sarah and Lynda dig into what makes a strong engagement letter for legal bookkeepers and accountants working with law firms.
They cover why signature authority matters (and what happens when it's ignored), how to define the entity and responsible party up front, and why listing out bank accounts, IOLTA accounts, and loans by name protects you when a client suddenly opens ten more accounts.
They also talk through start dates versus signing dates, weekly versus monthly billing, cancellation and termination clauses, and what happens to records when an engagement ends.
Along the way, they share real stories, including one that almost ended in a client asking for a full refund after work was already completed, plus practical advice on client responsibilities and deadlines, trust account language, software access and confidentiality, and why tools like Ignition can save you from chasing down expired credit cards.
Whether you're just starting to work with law firms or you've been at it for years, this episode is full of the practical, hard won lessons every legal bookkeeper needs in their contract.
00:25 Introduction and Engagement Letters Overview
03:26 The Importance of Engagement Letters
06:23 Defining Scope and Responsibilities
09:33 Handling Changes and Cancellations
12:22 Client Responsibilities and Deadlines
15:21 Software and Technology in Engagements
18:28 Trust Accounts and Compliance
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Accountants Law Pod is hosted by Lynda Artesani, Sarah Prevost, and Steve Libhart and directed, produced, and edited by Teaira Burge and The Proper Trust. Music by ComaStudio from Pixabay
Disclaimer: The content presented in this podcast is for informational purposes only and should not be considered as legal, financial, or professional advice.
The stories we share from the field are meant to educate, never to shame. We have deep respect for attorneys and the complexity of running a firm, and we recognize that many of the mistakes we discuss happen simply because no one ever explained the rules.