HOW TO CHOOSE A FRACTIONAL CFO.
Ask six things before you sign: have they worked inside construction books, what is included, what it costs in writing, how long onboarding takes, what decision comes out of each meeting, and what results they can show with numbers. A firm that cannot answer all six in writing leaves the scope open, and an open scope is where the problems appear.
Most owners compare fractional CFOs on price and credentials. Construction experience and scope decide the result, because the work is job costing, WIP, retainage and pay apps, and a CFO who has not built those cannot fix them. Ask to see a sample WIP schedule and a sample 13 week forecast before the first call ends.
WHAT IT MEANS.
A fractional CFO for a subcontractor is an outside finance leader who builds the job costing, the WIP schedule and the cash forecast, and meets with the owner every month to turn them into decisions, at a fixed fee instead of a full time salary.
The six questions below are the ones SPM expects to be asked, and they apply to any firm you are considering.
ASK THESE BEFORE YOU SIGN.
1. Have they worked inside construction books?
Look for direct experience with WIP schedules, pay app billing, retainage and job costing, and a track record with subcontractors in your revenue range. A CPA background alone does not show job costing skill, and a CCIFP certification is one signal of construction depth.
2. What is included?
Ask who does the bookkeeping, who builds the 13 week forecast, who updates the WIP and who owns each report. Every task left to you is yours to cover, so get the split in writing. Confirm whether payroll is included, because many firms leave it out.
3. What does it cost, in writing?
A flat monthly fee by revenue band is easier to budget than hourly billing. Ask for the onboarding fee, what is billed once, and what changes the fee. SPM publishes its fee by revenue band on the pricing page.
4. How long is onboarding?
A defined onboarding has a start and an end. SPM onboards in 60 days, migrates the books back to the start of the last taxable year, and delivers the first cost to complete report inside that window.
5. What decision comes out of each meeting?
A meeting that ends in a report changes nothing. The test is a monthly meeting that ends in decisions and a to do list with owners and dates on it.
6. What can they show with numbers?
Ask for results with dollar figures and the situation behind them. For example, a $6.7M civil contractor had $309K in the bank within 30 days from collections alone. Vague testimonials without numbers are a warning.
WHAT TO DO NEXT.
A firm that builds them regularly can show real ones with the client's identity removed. A firm that cannot is learning on you.
One page lists every report, who produces it, and the date it is due. Anything not on the page is yours.
The first deliverable is a cost to complete report or a 13 week forecast inside 60 days. A date and a defined output make the engagement checkable.
FLAT MONTHLY FEE. NO SURPRISES.
Three tiers, priced by your trailing twelve month revenue. Which one you're in depends on how much of the work you want off your desk. No hourly billing. No payroll. The one-time onboarding fee is right here in the table.
| Last 12 months revenue | Monthly fee | One-time onboarding |
|---|---|---|
| Up to $1M | $1,900 to $2,900 | $1,000 |
| $1M to $3.5M | $2,600 to $3,900 | $1,500 |
| $3.5M to $6.5M | $3,800 to $5,700 | $3,000 |
| $6.5M to $9.5M | $5,100 to $7,100 | $4,500 |
| $9.5M to $12.5M | $6,100 to $8,500 | $6,000 |
| $12.5M to $15.5M | $7,400 to $11,000 | $7,500 |
| $15.5M to $18.5M | $9,400 to $13,500 | $9,000 |
| $18.5M+ | Quoted individually | Quoted individually |
The onboarding fee covers migrating your books back to the start of your last taxable year and getting you fully operational in 60 days. It's billed once, with your first invoice. It's the same for all three tiers. Your first month is prorated, and your monthly engagement starts on the first of the first full month.
Range reflects the three tiers below. Which one you're in depends on how much of the work you want off your desk. No payroll. No hidden line items. The onboarding fee is right here in the table.
You stop guessing.
You get the CFO work. Job costing built against the way you estimate, a 13 week cash forecast, monthly WIP, and a meeting every month that ends in decisions and never in a report.
Your bookkeeper still does the books.
You stop touching the books.
Everything in Core, and we do the bookkeeping and the controllership as well. Your office stops answering coding questions and stops fixing a reconciliation that will not balance on the last day of the month.
We do the books. No payroll.
Every job shows its margin while it is still open.
Everything in Executive, plus the job costing and WIP platform set up, loaded with your cost codes, and managed for you every month. You never have to learn it.
We do the books, the job costing, and the software. No payroll.
FREQUENTLY ASKED.
