Request for Proposal (RFP) for Fractional CFO Services
Our firm is seeking the services of a qualified Fractional CFO to provide financial leadership and strategic guidance. The Fractional CFO will be responsible for delivering solutions for all complex accounting needs, presenting discerning financial analysis, guiding the full-time accounting resources, and supporting the Executive Committee with key financial insights.
Scope of Work
The Fractional CFO will be responsible for the following tasks:
- Budgets and Projections. Current year fiscal projections. Estimated combined partners’ earnings schedule. Annual budget with commentary. Specific sub-budget on information technology. Annual fee targets.
- Partners’ Compensation. Assembly of historical productivity and earnings data for use by Compensation Committee. Preparation of partners’ compensation schedule and memo. Partners’ equity points schedule.
- Reconciliations of Partners’ Earnings, Capital and Draws. Partners’ earnings, capital and draws reconciliation, on a forecasted and then final basis. Partners’ parental leave earnings adjustment (if applicable).
- Partners’ Draw Schedules. Standard draw schedules, on an annual, bi-weekly and year-over-year comparative basis. Holdback draw payout schedule. Any other special draw schedules and memos.
- Performance Analysis. Analysis of quarterly fees billed. Gross profit margin. Overhead. Comparison of partners’ average billings, earnings and overhead (individual productivity).
- Annual Partners’ Retreat Materials. Lead on assembly on all financial materials for the annual partners’ retreat. Presentation of same at the meeting.
- Capital. Schedule set-up for new or departing partners. Partner mid-year departure or leave reconciliations. Updates to capital reconciliation. Respond to partner or external auditor queries on same. Capital loans schedule. Multi-year schedule of capital repayments to departing partners.
- Fixed Assets. Continuity schedules, journal entry creation.
- Class Actions: Template creation. Primary on calculation preparation with support from accounting manager.
- New Arrangements or Standards (e.g., non-equity partners or counsel arrangements, tenants, end of WIP adjustment). Accounting research, working paper creation with narratives, journal entries. Review of same with external auditors.
- Ad hoc Analysis. Creation of virtually all new reports in response to ad hoc requests from partners.
- Banking. Primary contact with relationship manager. Annual review process, agreement negotiations. New platform/tool assessments and implementation oversight. Special draw calculations, scheduling for cash management with accounting manager.
- Taxes. External auditor prepares partner income tax estimates. CFO prepares income tax instalment schedules. Accounting manager remits tax instalments. CFO or accounting manager sends year-end reminders. Accounting manager collects signatures for partnership tax returns and files taxes. Accounting manager does all other firm tax and source deduction remittances and reconciliations. CFO is escalation point if there are any concerns.
- Payroll. CFO is escalation point if there are any concerns. Provides consultation on new or unusual arrangements.
- Accounting system (Acumin). Selection and implementation project team. Periodic vendor meetings regarding updates.
- Year-end. External auditor interviews regarding state of business, control environment, risks. External auditor interviews and feedback regarding all complex accounting reconciliations prepared. Includes error reporting and resolution if applicable.
Submission Requirements
Interested candidates should submit the following documents:
- Cover letter outlining relevant qualifications and experience
- Detailed resume
- Proposed approach to fulfilling the duties listed in the Scope of Work and associated costing/rates
- References from previous clients
Deadline
All proposals must be submitted by April 16, 2025. Late submissions will not be considered. Early responses are encouraged.
Contact Information
Please provide your proposal and address any inquiries, to:
Philip Abbink
Co-Managing Partner
Cavalluzzo LLP
pabbink@cavalluzzo.com
416-694-5547