Fractional CFO Scope of Work: Clauses and Deliverables

Use this outline as the skeleton of the agreement:

1. Purpose: two sentences on the outcomes you want, such as reliable monthly reporting and a financing plan.
2. Deliverables: a list of recurring and one-time outputs, each with a due date.
3. Responsibilities: what the CFO owns, what your team provides and which systems the CFO can access.
4. Time commitment: included hours or meetings per month, and response times.
5. Fees: retainer or hourly terms, expenses, and how overages are approved.
6. Exclusions: work outside scope, such as bookkeeping, tax preparation and audits.
7. Change process: how new work is proposed, priced and approved in writing.
8. Confidentiality, data and ownership of models and reports.
9. Term and termination: length, notice period and transition help.

Pricing structures are covered in the fractional CFO cost guide.

A deliverable is checkable when it has a format, a due date and an acceptance test. Compare these versions:

• Vague: "Provide cash forecasting."
• Checkable: "Deliver a 13-week cash forecast by the fifth business day of each month, reconciled to the bank balance, with a written explanation of any variance to the prior forecast."

Typical recurring items include a monthly management report with a variance commentary, a review of the close and key reconciliations, a rolling forecast, a KPI dashboard, an accounts receivable and payables review and a monthly meeting with an agenda. One-time items might be a fundraising model, a budget for the next year or a lender package.

Attach dependencies. If the report needs the books closed by the third business day, say so and note that late inputs move the due date. That prevents disputes about missed deadlines that were not the CFO's to control.

Hours are the most common source of friction, so be explicit. State the included hours per month and how they are counted, such as billed in fifteen-minute increments. State the standing meetings, such as one weekly check-in and one monthly review, and how quickly the CFO will respond to urgent questions during business days.

Decide what happens when you need more. A sensible clause says overages must be approved in advance in writing, with a rate stated, and that unused hours do or do not roll forward. If your work is seasonal, such as a year-end close or a raise, you can schedule higher-hour months in advance.

Include a right to reduce scope. If the books become more reliable and you need less review, a reduction clause lets you lower the retainer without renegotiating everything, which favors both sides when the engagement is working.

Exclusions protect both parties. List them plainly:

• Bookkeeping and transaction entry, unless you are paying for it separately.
• Tax return preparation and tax advice beyond planning conversations, which belongs to a CPA. The bookkeeper, controller and CFO guide shows where each role stops.
• Audits, reviews and attestation, which require an independent firm.
• Legal advice, including the drafting of financing agreements.
• HR administration and payroll processing.
• Software implementation projects, unless scoped and priced separately.

Also state how the CFO works with your outside accountants and lawyers. The CFO can direct questions and review their work but is not responsible for the accuracy of transactions they did not record.

Three clauses tend to matter most when relationships change:

• Change orders: any new work is described, priced and approved in writing before it starts.
• Ownership: state that models, templates and reports built for you are yours to keep and use, and that the CFO may reuse general methods but not your confidential data. Ask the CFO to keep models in your accounts, not on a personal drive.
• Termination: set a notice period and require a transition, including handover of files, passwords and a summary of open items. Ask the CFO to leave a handover summary of open items, model logic and calendar dates.

Review the scope quarterly. Deliverables that no longer help you should be removed and new ones added as your needs change. If you are still choosing between candidates, use the interview questions. For reporting tools, see the planning software comparison.