Maybe its just me but I don't have contracts with any of my current clients. It is mostly based on trust since they were all referred to me by my other clients. My wife keeps pushing me to get something in writing but if I am not having any problems in terms of getting paid, scope of my work etc then why bother?

Don't try to cheat someone else and no one will try to cheat you.

I use engagement letters with all clients. Engagement letters are binding contracts between a service provider and a client.

A different letter is used based on the type of service: on-going bookkeeping, research project, tax return, representation at an IRS or State audit.

I purchase the letters from a publishing company that serves the accounting industry.

A good engagement letter outlines the costs, when you should be paid, when the work is considered complete, what is expected of each party, how either party can end the engagement, and the cost to either party to end the engagement early.

A great engagement letter:

-Can limit your liability
-Can limit your costs in a dispute, for example by requiring mediation rather than a lawsuit
-Helps you sleep at night

I don’t advise that an engagement letter be a place to do-it-yourself, or to skimp on costs. Even if you put it together yourself, get it reviewed by an attorney. Some simple clauses that belong in the contract may not seem like a big deal but really matter. For example, your engagement letter should specify in what jurisdiction a lawsuit needs to be filed (uh, your town) and under which state’s laws the contract should be consider (again, you state).

In my case, I spend a few hundred dollars each year to but the update letters that are specific to my State. [Hey, H&R Block is using engagement letters with once-a-year tax return engagements]

I have one because: 1) it's a good idea to layout each sides' expectations; and 2) our state bar requires that we have if we anticipate services to be at least $1,000, we must have one.

As a slightly experienced legal secretary, its what I did during college, I find engagement letters to be the least level of a contract that I will work under. An absolute necessity.

Yes, I do as well. The first reason for me is that it adds a touch of professionalism that often increases your credibility, leading to more respect from your customers and clients. Secondly, it eliminates misunderstandings about what is expected. Thirdly, it opens the door to capture additional revenue when indecisive customers decide to flagrantly exceed the project scope. A good contract provides protection, peace of mind and preset boundaries for both parties.

I developed the contract myself after doing some research and comparisons to online samples. Be clear on your industry standards and regulations.

I have had no problems with my contract thus far.

It has saved me bacon because clients come to me and discuss additional costs before randomly exceeding project parameters.

Before implementing a contract, make sure you are prepared to fulfill your part of the deal so it won't backfire.

Hopefully this helps!

I require contracts not only for my clients but also for the companies I subcontract with. I also include confidentiality agreements in the client and subcontracting packets, as well. I just want to be as covered as possible.

I don't routinely use contracts or letters. If someone wants a schedule with costings and timings then I will do one myself. I'm in a small community so trust is a big thing, many of my clients arrive by word of mouth.

In my experience, living in an area with a higher than average population on low income (longterm situation for many as factories and mills have closed, farmers not farming any more, young people moving to the cities looking for work etc) There is also higher than average adult illiteracy so I am just a bit sensitive to their views and fears on letters and contracts. Anything like that would have them walking out the door. All trust lost. No new clients from them.

I have never had a problem with lower income clients paying, (they will ask to pay over a period of time if they can't afford it all in one go (I keep the items until full payment has been made) in fact they are the ones who offer generous tips.

The problems I have had are with those people who can well afford my services but seem to have a mental blockage when payment is due.

I don't hang around now. I write requesting full payment and storage fees within two weeks and then ask a local solicitor to send a letter demanding payment - the client pays any legal fees incurred for this not me.

I understand people can have finacial difficulties and that 3 months ago when they ordered their curtains they had the means to pay for it, but since then, have lost their job. If they talk to me, I can help them. If they ignore my requests for payment, then they deal with a solicitor.