If there’s no signed engagement letter, you shouldn’t be touching the work.
This may sound too serious, however in this work this should be your daily work mantra.
It doesn’t matter if it’s your cousin, or the client you’ve served for ten years, if you don’t have a written agreement in place, you’re operating unprotected.
A contract isn’t just paperwork.
It’s your legal backbone.
It defines scope. It sets expectations. It limits liability. It aligns with your state board’s rules. And when something goes wrong, your contract becomes your shield.
Here’s where too many CPAs fall short:
- They assume trust replaces process.
- They jump into “just helping out” without establishing terms.
- They say, “We’ll formalize it later.”
Then the client forgets what was agreed on. Or they expect more than you promised. Or they disappear when the invoice hits. And suddenly, you’re trying to enforce terms that were never written down.
I am sharing this with you from experience. Over and over this has been happening until I learned my serious lesson. Don’t put yourself in that position.
The moment someone asks for services, your response should be a formal engagement agreement. Not a handshake. Not a quick email. A signed, dated document that spells out:
- What you’re doing
- What you’re not doing
- Fees, timelines, responsibilities
- What happens if they don’t hold up their end
And yes, it must comply with your state board’s requirements. Some boards mandate very specific language. If you’re not aligning with that, you’re already exposed before the work begins.
Contracts aren’t cold. They’re clear. They protect you and your client. They eliminate assumptions, anchor the relationship in professionalism, and give you solid footing when expectations shift.
🧠 Apply This Now:
Pull out your last three client engagements. Did each one begin with a signed contract? If not, stop everything and fix it. Draft a compliant engagement letter. Get it signed. Get it stored. If you need a template, search your state board template or your malpractice insurance provider. They often have vetted language ready.
Lesson 6 continues tomorrow. Don’t miss it.
Book your free 15 minutes clarity session today: 757-977-8911 or email [email protected]
If we haven’t met,
I am Dr. Lilly Mbinglo, CPA,
❤️Daddy YONGKA’s Nyomshiliv,
💃🏾Abakwa’s FINEST and SMARTEST CPA,
💸Tax Strategist and Tax Alchemist Extraordinaire,
👩🏽💼Regent University MBA Professor,
I serve through The Ark NPS, a full-service Accounting Firm, where we provide Accounting services, Bookkeeping, Payroll, Tax Preparation, Planning, Resolution and Consulting, as well as Startup services to Individuals, Businesses and Nonprofits.
Let’s Connect!
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