Fractional CFO CostExtras that hide in a fractional CFO quote
You're looking for the extras that can hide in a fractional CFO quote, because you'd like to know what you could end up paying on top. Tax CFO Steven Palmieri leads this practice, and Steven and his team start from a simple rule. Anything outside the monthly number is named as an extra, with a price, before the work is done.
Find the extras in my quote
Bookkeeping that isn't included
Many fractional CFO quotes assume someone else keeps the books. That's fair when it's true. But if you don't have a bookkeeper, the quote has a gap. A CFO reading books nobody keeps has nothing to read, and the cost of getting them kept lands on you. Ask who keeps the books, and what it costs if the answer is the CFO.
Cleanup or catch-up billed later
If your books are behind, the quote may say nothing, and the first bill after you sign may include a large cleanup line. A fair quote asks to look at the books first and names catch-up as its own job. If it turns out larger than expected, a fair CFO stops and names a new price before continuing.
The tax return outside the fee
Some fees cover the CFO work and leave the return for someone else, or for a separate charge. That can be reasonable, but it means two people learn your business and two bills arrive. Ask whether the return is inside the fee. If it isn't, ask the price now.
Software subscriptions
Bookkeeping software, receipt tools, a payroll subscription and reporting apps often carry their own monthly charges, and they're usually billed by the provider rather than the CFO. They should still be listed so you know the total cost of the arrangement.
Onboarding or setup charges
A one-time fee at the start is common and not wrong. It should appear on the quote with an amount and with a description of what it covers. Surprise onboarding charges are the kind that make owners feel tricked.
The one question that finds all of them
Ask the person quoting you, "What would make this number change?" Then listen. A thorough answer will include late statements, growth in volume, a new entity, catch-up work, a return, an extra meeting and anything else outside the original scope. A vague answer tells you the quote has not been thought through, or that the surprises are meant to come later.
Write down the answers, and ask for them in the quote. If a person won't put an answer on paper, treat it as no answer. You are free to ask for the same question to be answered by more than one firm and compare what each one says.
Why extras aren't wrong
Some costs really are separate. A one-time cleanup is a project. A return is its own task. Nobody should hide those inside a monthly figure, because a figure that tries to absorb everything either gets padded or runs out. The trouble comes only when the extra is a surprise. Named in advance, with a price, an extra is just part of the plan.
How we handle extras
Anything outside the monthly work is named before we do it. If a letter or a lender package would be extra, we say so first. Questions during the month aren't extras. The things we don't price at all are listed on the line page, and the in-scope list is on what a fee should include.
Inside the fee. For this page's subject, a fair fee comes with a short list of what's outside it, each item with a price, so that nothing arrives as a surprise on an invoice.
What could land on top of your quote?
You will be talking to the Steven Palmieri practice.