Hiring a fractional CFO is a bigger commitment than adding new accounting software, and a few pointed questions up front can prevent months of mismatched expectations. Lang Tax Solutions in Sioux Falls encourages business owners to ask every candidate the questions below, Lang included.
A fractional CFO (chief financial officer) is a senior finance professional who works with your business part time, usually on a monthly arrangement, handling forecasting, budgeting and financial strategy.
What should you ask a fractional CFO before hiring one?
1. Are you a licensed CPA?
Not every fractional CFO is a CPA, and the CFO title itself carries no licensing requirement. A CPA (certified public accountant) has passed the Uniform CPA Examination and meets state licensing rules. In South Dakota, you can confirm active status through the Board of Accountancy.
2. How is the engagement priced?
Most fractional CFOs charge a monthly retainer, an hourly rate or a project fee. Ask what the base fee covers and what triggers extra charges, such as preparing a loan package.
3. How many hours a month will I get?
Fractional can mean a few hours a month or several days. Get the expected hours in writing, along with how quickly they respond between scheduled meetings.
4. What will I receive each month?
A solid answer names deliverables: monthly financial statements, a cash flow forecast, a budget-versus-actual report or a short KPI dashboard. Vague promises of strategic guidance make value hard to measure.
5. Do you work with businesses like mine?
Industry experience shortens the learning curve. A construction company needs job costing and work-in-progress reporting, while a professional services firm watches billable utilization more closely.
6. Who keeps the books?
A forecast is only as reliable as the bookkeeping underneath it. Find out whether the CFO’s firm handles bookkeeping or expects your current bookkeeper to deliver closed books each month.
7. Will you coordinate with my tax preparer?
Decisions about owner compensation and equipment purchases show up on your tax return. If the CFO and tax preparer work separately, ask how often they will compare notes.
8. What accounting software do you use?
Many small businesses run on QuickBooks Online. Confirm the CFO can work in your current system, or understand the cost and time involved in switching.
9. How will you protect my financial data?
You will be sharing bank statements and payroll records. Ask whether documents move through a secure client portal instead of email attachments.
10. What do the first 90 days look like?
A clear onboarding plan shows how the CFO thinks. Expect a review of the past 12 months of financials and a first forecast within that window. Ask how either side can end the engagement.
Which Sioux Falls firms can you ask these questions?
The following Sioux Falls accounting practices appear on the South Dakota Board of Accountancy’s register of firms. Their services vary, so confirm with each one whether it offers fractional CFO work.
- Lang Tax Solutions
- Auten Accounting Solutions LLC
- Dakota CPA, PLLC
- McGinnis and Company, PC
- Solution CPA PLLC
1. Lang Tax Solutions
Lang Accounting and Tax Solutions is led by Jeff Lang, CPA, and has worked with Sioux Falls businesses for more than a decade. Its fractional CFO service covers forecasting, cash flow management and financial analysis for owners who need senior financial guidance without a full-time hire. Because the firm also provides bookkeeping, QuickBooks support, payroll management and small business tax preparation, questions six and seven are answered in-house. Clients share documents through a secure client portal, and the firm serves businesses in Sioux Falls and Omaha.
2. Auten Accounting Solutions LLC
Auten Accounting Solutions is an accounting firm on East Silver Maple Circle in Sioux Falls. Contact the firm to learn which services it currently provides.
3. Dakota CPA, PLLC
Dakota CPA is a Sioux Falls accounting practice on South Southeastern Avenue. Reach out directly for details on its services.
4. McGinnis and Company, PC
McGinnis and Company is an accounting firm with an office on East 14th Street in Sioux Falls. The firm can explain what types of engagements it accepts.
5. Solution CPA PLLC
Solution CPA is a Sioux Falls accounting firm on East Rosa Parks Place. Ask the firm about its current service offerings.
How should you compare your options?
The right fractional CFO for your business is the one whose answers are specific, written down and easy to hold them to. Bring these questions to two or three consultations and take notes on each answer. Before you sign anything, compare the written proposals side by side, paying close attention to deliverables and exit terms.
