“Using engagement letters is like getting exercise and eating healthy. You know you ought to be doing it, but you mostly don’t follow through. And like exercise, there are the excuses. Well, not excuses so much as reasons not to,” writes Jonathan S. Ziss, a partner in Goldberg Segalla’s Professional Liability Practice Group.
In this article published by the Pennsylvania Institute of CPAs Jonathan notes the most common excuses people utilize when reasoning their argument against the use of engagement letters. These range from not wanting to employ someone and incur the cost of drafting an engagement letter to the argument that their client relationship is too informal for such a document.
Jonathan explains the misguided nature in each of these common excuses and states that “If your practice ‘style’ doesn’t include issuing engagement letters, you would do well to change your style.”