Fractional CFO CostComparing two fractional CFO quotes, line by line
You're looking for a way of comparing two fractional CFO quotes that were built in completely different ways. Tax CFO Steven Palmieri leads this practice, and Steven and his team use one worksheet for it, below. Put both quotes into the same rows, mark what each one says, and the gaps appear on their own.
Send both quotes
The worksheet
Write quote A and quote B across the top. For each row, mark one of three words for each quote. The words are included, extra or not mentioned.
| Row to fill in | Quote A | Quote B |
|---|---|---|
| Month closed and tied to the bank | included, extra or not mentioned | included, extra or not mentioned |
| Statements prepared from the closed month | included, extra or not mentioned | included, extra or not mentioned |
| The monthly read with you | included, extra or not mentioned | included, extra or not mentioned |
| A cash view and a plan | included, extra or not mentioned | included, extra or not mentioned |
| Tax planning during the year | included, extra or not mentioned | included, extra or not mentioned |
| The tax return | included, extra or not mentioned | included, extra or not mentioned |
| Questions during the month | included, extra or not mentioned | included, extra or not mentioned |
| Catch-up of months behind | included, extra or not mentioned | included, extra or not mentioned |
| Setup work | included, extra or not mentioned | included, extra or not mentioned |
Every not mentioned is a question. Ask it before you decide. Each row is explained on the page about what a fee should include.
Turn each quote into a full monthly cost
Quotes that come in different shapes need to be reduced to the same shape. For a monthly retainer, the monthly number is already there, plus anything marked extra. For an hourly quote, multiply the rate by the estimated hours and add the extras. For a project fee, spread it across the months the project takes. Then add the same standard extras to both, so you're comparing like with like. Fractional CFO rates walks through the hourly case.
Whose hands do the work
Quotes tend to blur this, so ask. Is it a named person, a team, or a junior person with someone senior looking over their shoulder? None of these is wrong. They're different, and the price should match. A quote that says "our team" with no names is a quote with a question in it.
What each says about books that are behind
If your books are behind, one quote might assume they're fine, another might add a large cleanup, and another might refuse to start. Read what each one says. Whichever you pick, you want the cleanup named, sized and dated before the work starts.
What each says about taxes
Look for who plans, who prepares and when. A quote that covers the planning but not the return means a second person and a second bill. A quote that covers neither means the CFO is reading numbers that someone else will use for taxes later. Both can be fine. They just need to be visible.
No names, no market numbers
This page doesn't compare companies by name, and it doesn't quote a market average. The worksheet works on any quotes, from anyone, because it asks about what is inside and not about what is charged.
Inside the fee. For this page's subject, a fair quote fills in every row with a clear included or extra, and the fee we put in writing is built to leave no row marked not mentioned.
Have two quotes you can't line up?
You will be talking to the Steven Palmieri practice.