10 Questions to Ask When Meeting Your Potential First Attorney Client
Jan 03, 2023
When I got my first attorney-client, I was excited and overwhelmed all at the same time. A local attorney just setting up his solo practice found me through the Find-A-ProAdvisor search engine. It was an incredible opportunity for me, being new to working with attorneys, to gain some experience and get a feel of working in this interesting sector. It also meant that I had to adapt quickly and become familiar with the law firm lingo, trust accounting, bar association rules, and other requirements
The first meeting with a lawyer can be nerve-wracking - especially if you don't know what to ask. You probably have at least a basic understanding of how lawyers work and bill their clients, but the profession involves many more complexities. Here are ten fundamental questions to consider when talking to your first attorney-client:
1. What Is Your Practice Area?
It is always a good idea to research the attorney and scope out their website to know a few details upfront about the firm before the first meeting. You can look at the "about us" page to see if you are speaking with the owner of the firm itself or if you are speaking with the legal administrator or bookkeeper. Look at the practice areas listed on their website. There may be one or multiple. Knowing this answer will help you determine what other questions you should ask. Understanding the kind of law firm you're dealing with is essential.
2. What entity type is your firm? Is it a partnership, S-Corp?
Is it a sole proprietorship or partnership? Are they an S-Corp? These details are essential to understand the law firm's structure and will have an impact on the payroll for the firm.
3. What accounting software are you using? Is it QuickBooks, Xero, or a spreadsheet?
Inquire about the software used to manage the firm's financial accounting. Knowing the accounting software is necessary to ensure that your payments are tracked and accounted for. It will give you a better idea of how the attorney handles their billing, accounts payable, and payroll.
4. Do you have trust accounting?
It is vital to ensure that the attorney you choose utilizes trust accounting. Trust accounting refers to the management of money held in escrow on behalf of a client by their attorney. During this process, all payments received from a client are deposited into the lawyer's trust account rather than directly into the lawyer's regular business account. Ask your prospective attorney if they have implemented trust accounting within their practice and what processes they use to protect and safeguard your funds during the client-attorney relationship.
5. Is the Trust account balanced? When was the last time it was balanced?
Attorneys will often call you because they know their records–especially the trust account– are not balanced. They may answer you with, "I am not sure when it was last balanced," or "I know the balance was off on xx date.
6. Do you have an outside spreadsheet where you track the trust accounting?
Asking about a spreadsheet may seem like an odd question, but most attorneys (especially if they are a solo practice) keep their trust records in a side spreadsheet. We ALWAYS ask this question. 75% do keep that outside spreadsheet as a safety net, as they know the importance of a balanced trust account.
7. Do you have any payroll or use a payroll provider?
It is good to find out in the initial scope if they have employees or contracted workers (even if they are a partnership–they may still have payroll.)
8. Do you have outstanding Accounts Receivable?
Accounts receivable might sound like confusing financial jargon to some, but it's essential to understand this concept as a business owner. You can ask the possible attorney-client about their accounts receivable and how much of it is outstanding. Do they need assistance in collecting? This commitment to helping your client can create a strong relationship that will last for years.
9. How do you pay for the client's expenses (advanced client costs)?
Another important question. Some attorneys pay their payables on a credit card only; some pay filing fees and other fees with a bill and bill payment. Determining if they pay expenses on a cash basis or accrual will help you determine the payables workflow.
10. What is NOT working at your firm? What keeps you up at night?
Asking what is NOT working may seem like a general question, but it is great to ask and listen. Take notes. Let the potential client tell you their story.
We hope you enjoyed our list of 10 questions to ask when meeting your first lawyer-client. We are happy to provide a resource to help you feel more prepared and confident when you meet with your first attorney-client.
If you want to learn more about how to work with attorneys, we have a course called Fast Track Legal Accounting. And if you have one or many lawyer clients, join us at the Accountant's Law Lab. The Law Lab is our mastermind group full of bookkeepers and accountants that meet every Friday to learn how to work with bookkeeping for the legal industry. This week's topic is cleaning up a messy law firm data file, what to expect, and how to clean up an unbalanced trust account. We hope you join us!
Do you want to join our private group? We have a large collection of videos that you can learn from, and we hold weekly meetings every Friday at 9 am PT/12 pm ET.
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