Understanding and Addressing Finances

• Author: Sharon Meit Abrahams
• Pages: 17-19

17

V. POINTERS FOR UNDERSTANDING

AND ADDRESSING FINANCES

Pointer # 62

Correlating Client Satisfaction

 e lifeblood of a law  rm is the client

that pays the bills. Be conscious that

the client’s satisfaction correlates with

the speed at which those bills will be

paid.  e timeliness and quality of

your work contribute directly to client

satisfaction, and thus, to the bottom

line.

Pointer # 63

Learning about Client Billing

Unless you are a solo practitioner, you

will likely have little to discuss in the

way of  nances with clients until you

are a more senior attorney. But as you

progress in the  rm, become prepared

and learn how the  rm handles its

monetary issues.  ere may be online

or written materials in the  rm on this

subject that you can assess.

Pointer # 64

Reviewing Engagement Letters

Many  rms have, and some

jurisdictions require, a document

called an engagement letter that

outlines the scope of the work to

be performed, the fees that will be

charged for a particular case or matter,

and reimbursable costs. Until you

are originating clients, you may not

be dra ing these letters, but it would

be bene cial for you to review the

engagement letters of all cases or

matters on which you work.

Pointer # 65

Familiarizing Yourself with Fee

Agreements

As noted, most engagement letters

include a section on fees. If one is

not incorporated, your  r m probably

maintains a separate written fee

agreement, designed to alleviate

confusion should the bill exceed a

client’s expectations.  is document

can outline the rates each attorney

and non-attorney charge per hour,

or describe a pertinent alternate

fee arrangement, such as a  at fe e,

premium, or value billing structure.

Become familiar with the fee

agreement, and how budgets or billing

a ects your role in each instance.