Frank, Frank, Goldstein & Nager, P.C.

1. IMPROVING
REALIZATION RATES
Frank, Frank, Goldstein & Nager, P.C.
1430 Broadway Suite 1615
New York, NY 10018
Tel: (212) 686-0100 www.ffgnesqs.com

2. Realization Rates
Realization rates should be
approximately 90 to 95 percent.
90 %
95 %

3. Issues to Consider
Policyholders
Not all time on engagements billed
Late billing by firm
Liability carrier exclusion for fee disputes
Strict adherence to liability policies may
prevent cancellation or suspension of policy
and benefits
Economic reality of lawsuits
Accounting Malpractice
Statute of Limitations

4. Objective: Increase realization rates
Overview:
 Tighten risk management and assessment policies.
 Secure engagement letters which include policies
regarding payment of fees and fee disputes.
 Record all time spent on client engagement.
 Act diligently to collect current and aged receivables.
 Evaluate work papers and files for possible error's
(anticipated counterclaims and suit.)
 Consult with your liability carrier prior to referring the
claim for collection.
 Use collection counsel with experience handling
accounting fee disputes.

5. Risk Management and Assessment Policies
1. Due diligence on Prospective Client
Internet search
Check public records for lawsuits,
judgments, liens, and pending litigation.
Check public records for assets.

6. Risk Management and Assessment Policies
2. Identify High Risk Clients
Clients with cash flow issues and/or poor internal controls
Clients with lack of stability
Clients who require expertise not possessed by the firm
Clients who negotiate initial retainer
Clients that are unable or unwilling to pay fair fees
Clients who have repeatedly changed accounting firms
Clients with multiple judgments and lawsuits
Client engagements that "feel wrong"

7. Risk Management and Assessment Policies
3. Engagement letters
 Standard clauses
 Fees
 Specific work being performed
 Limitations
 Dispute resolution clause(s)
 Reservation of right to withdraw or terminate
engagement
 Specific clauses which will protect the
practitioner
 Rates subject to change

8. Risk Management and Assessment Policies
3a. Engagement letters
Do not proceed without the signed
engagement and initial fee retainer.

9. Risk Management and Assessment Policies
4. Addendums to Engagement Letter.
Change in scope or additional work to be
performed
Change in fees or rates
Client must sign off on addendum before
performing additional work

10. Billing Practice
1. Record and account for all time on
engagement.
Bottom line effect
Staffing issues
Profitability

11. Billing Practice
2. Active collection efforts on current and
aged receivables.
Bill timely
Contact client for payment in a phone
and email
Establish a collection policy

12. Fee Disputes and Non-Payment:
Always Anticipate a Dispute
Fee Dispute Provisions
Mediation
Arbitration
Litigation
Include a provision limiting your firm’s
liability

13. Other Considerations
Cost and Benefits
Professional Liability Carrier
Coverage
Deduction
Terms of policy
Approved

14. Call us at (212) 686- 0100 or email us directly
at Jnager@ffgnesqs.com for further information
and/or to help you get paid now.