Hiring guide
How to compare fractional CFO proposals without comparing the wrong fees
By CFO Index · Published
Two CFO proposals with the same monthly fee can buy very different work. Compare the complete delivery arrangement, not the headline price. This guide provides an editorial comparison method for founders who already have proposals; it does not estimate market rates or rank providers.
Give every provider the same decision brief
Describe the decision, current finance team, source systems and deadline in one page. For example: can we afford three hires next quarter, and who will maintain the forecast afterwards? Include the state of the books. Ask each provider to identify assumptions behind their quote. A proposal built around clean monthly accounts cannot be compared fairly with one that includes repairing six months of records. Send anonymised information during initial discussions.
Turn promises into comparable rows
Create rows for initial diagnosis, data preparation, forecast construction, monthly updates, management meetings and handover. Against each proposal, write included, excluded or unclear. Add the named delivery role and frequency. Replace 'strategic support' with a specific output or question for the provider. Keep bookkeeping and tax work separate so an apparently comprehensive CFO package does not receive credit for services you already buy elsewhere.
Calculate the complete first-period cost
Hypothetical illustration, not a rate benchmark: proposal A charges €2,000 a month plus €1,500 setup; proposal B charges €2,400 monthly with setup included. Over three months, A totals €7,500 and B €7,200 before tax and any extras. That does not make B better: check whether the same outputs and people are included. List software, travel, cleanup and internal preparation time separately rather than hiding them inside one comparison number.
Use a scorecard that permits an unknown answer
Score evidence for relevant work, delivery capacity, clarity of outputs and knowledge transfer. Use an explicitly chosen scale such as 0 for missing, 1 for a claim and 2 for an example you can discuss. These are your evaluation rules, not an industry standard. Keep unresolved questions visible; do not convert missing evidence into an average score. Set essential requirements before seeing the totals.
Resolve the two biggest uncertainties before signing
Meet the person doing the work and walk through one proposed output. Ask what happens if your data arrives late or the lead CFO is unavailable. Request a revised written scope where answers change the proposal. ICAEW's practice guidance emphasises clear engagement terms and fee bases for its firms; this scorecard is our separate buying framework, not a statement that every fractional CFO is governed by ICAEW.
When a diagnostic is the better purchase
If neither side can estimate the cleanup needed, agree a bounded diagnostic with a findings document and a separate decision on ongoing work. Specify what information the diagnostic will inspect and what it will not verify. Avoid treating a paid discovery project as a promise of a particular funding outcome or a guaranteed profit improvement. Its value is reducing uncertainty before a larger commitment.