Question 1

When should a small business owner hire an accountant?

Accepted Answer

You should hire an accountant when your books take more than a few hours per month, when you have employees or payroll, when you're dealing with multi-state taxes, when you're considering an S-Corp election, or when your annual revenue exceeds $100,000. Most business owners wait too long — an accountant's fee is almost always recovered through tax savings and audit protection in the first year.

Question 2

What's the difference between a CPA and a bookkeeper?

Accepted Answer

A bookkeeper records and categorizes financial transactions, reconciles accounts, and maintains your general ledger. A CPA (Certified Public Accountant) is a licensed professional who prepares tax returns, files financial statements, represents you in audits, and provides strategic tax advice. Most growing businesses need both: a bookkeeper for ongoing transaction management and a CPA for annual tax filing and tax planning.

Question 3

How much does a small business CPA typically cost?

Accepted Answer

Small business CPA fees vary significantly by scope and location. Basic annual tax preparation (Schedule C) runs $500–$1,500. An S-Corp or partnership return typically costs $1,500–$3,500/year. Full-service accounting with quarterly tax estimates, payroll review, and monthly calls often runs $500–$2,500/month. Use the Coyote Wealth CPA Fee Benchmarker to compare rates for your specific business type.

Question 4

What's the difference between a fee-only and fee-based financial advisor?

Accepted Answer

A fee-only financial advisor is compensated exclusively by client fees — they receive no commissions, referral fees, or payments from product companies. This eliminates most conflicts of interest. A fee-based advisor charges client fees but also receives commissions from selling certain products (annuities, insurance, mutual funds). Fee-only advisors are typically fiduciaries; fee-based advisors may only be held to a suitability standard on commission products.

Question 5

How much money do I need to hire a financial advisor?

Accepted Answer

Traditional wealth managers often require $500,000–$1M in investable assets as a minimum. But independent RIAs and fee-only planners increasingly work with clients at any asset level on an hourly or flat-fee basis. If you're a high-income earner or small business owner, a financial advisor can be valuable even before you've accumulated significant assets — particularly for tax planning, insurance optimization, and retirement account strategy.

Question 6

What does a fiduciary financial advisor do?

Accepted Answer

A fiduciary financial advisor is legally required to act in your best interest at all times — not just recommend "suitable" products. Fiduciary advisors disclose all conflicts of interest, recommend lower-cost investment options when available, and cannot receive undisclosed compensation for product recommendations. All Registered Investment Advisers (RIAs) are fiduciaries. When searching for a financial advisor, always ask whether they are a fiduciary 100% of the time.

Question 7

When should a startup hire a fractional CFO?

Accepted Answer

Most startups should consider a fractional CFO when: annual revenue reaches $1–2M and financial complexity is growing; you're preparing for a fundraising round and need investor-ready financial models; your CEO is spending more than 20% of their time on finance; you're burning cash and need runway optimization; or you're planning a significant hire or expansion that requires financial modeling. A fractional CFO costs $3,000–$10,000/month versus $200,000+ for a full-time hire.

Question 8

What's the difference between a bookkeeper, controller, and CFO?

Accepted Answer

A bookkeeper records transactions and maintains your general ledger (operational, backward-looking). A controller manages the accounting team, closes the books monthly, prepares financial statements, and ensures accounting accuracy (tactical, backward-looking). A CFO provides financial strategy, cash flow forecasting, board reporting, fundraising support, and long-term financial planning (strategic, forward-looking). Many growing companies layer these in sequence as complexity increases.

Question 9

How much does a fractional CFO cost?

Accepted Answer

Fractional CFO pricing typically runs $3,000–$12,000/month depending on scope, company complexity, and hours required. Startup-focused fractional CFOs often offer packages: 10 hours/month for basic financial oversight at the low end, up to 40+ hours/month for companies actively fundraising or undergoing audits. This compares to $180,000–$300,000/year for a full-time VP Finance or CFO.

Question 10

Do I need both an accountant and a financial advisor?

Accepted Answer

Yes, for most high-income individuals and business owners, you need both — they serve different functions. Your CPA/accountant handles tax compliance (filing returns, IRS representation) and tax planning (minimizing what you owe). Your financial advisor handles investment management, retirement planning, insurance, and long-term wealth strategy. Many advisors have CPA backgrounds, but the two roles are distinct and most clients benefit from having dedicated professionals for each.

Question 11

What questions should I ask before hiring a financial professional?

Accepted Answer

Before hiring any financial professional, ask: (1) Are you a fiduciary, and are you always a fiduciary? (2) How are you compensated — fees, commissions, or both? (3) What is your specific experience with clients like me (my industry, income level, entity type)? (4) How often will we meet and communicate? (5) What credentials do you hold and how are they maintained? (6) Can you provide references from current clients? A professional who hesitates on any of these deserves more scrutiny.

Question 12

How do I know if my financial advisor is acting in my best interest?

Accepted Answer

The clearest signals: your advisor is a registered RIA (not just a broker-dealer representative), they are fee-only with no commissions, they proactively disclose conflicts of interest in writing, they recommend low-cost index funds when appropriate rather than high-fee products, and they can clearly explain why each recommendation is right for your specific situation. You can verify an advisor's registration, credentials, and disciplinary history at FINRA BrokerCheck and the SEC's Investment Adviser Public Disclosure database.

Common Questions About Hiring Financial Professionals

Accounting & Tax

Financial Planning

Fractional CFO

Working with Financial Professionals

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