TL;DR — Quick Answer
Most small to mid-size Iowa contractors need all three — but not all at once, and not all at full-time. A bookkeeper handles day-to-day financial recording. A CPA handles tax strategy, compliance, and financial planning. A CFO provides high-level strategic financial guidance. Many contractors benefit from a single outsourced accounting firm that delivers all three roles at the appropriate level for their current stage.
Why Does This Question Matter for Contractors?
Contractors who are trying to clean up their finances or scale their business hit a wall at some point where they're not sure who they need. They might have a bookkeeper but no CPA. Or a tax preparer who files their return once a year but doesn't do anything proactive. Or they're doing everything themselves and burning out.
Getting the right financial support structure in place is one of the most impactful things a contracting business can do. We are Performance Financial CPA, Accounting & Tax — a Des Moines CPA firm that specializes in construction contractors — and this question comes up constantly with new clients. Here's how to think through it clearly.
What Does a Bookkeeper Do?
The Day-to-Day Financial Record Keeper
A bookkeeper's primary job is to accurately record and categorize every financial transaction in your business. This includes:
- Recording income from invoices and payments received
- Categorizing expenses (materials, labor, equipment, overhead)
- Reconciling bank accounts and credit cards monthly
- Managing accounts payable and accounts receivable
- Processing payroll
- Generating basic financial reports (P&L, balance sheet)
For construction businesses specifically, a good bookkeeper also handles job costing — tracking costs to individual projects — and manages subcontractor documentation and 1099 compliance. These are construction-specific skills that most generalist bookkeepers don't have. See our full explanation of what construction bookkeeping actually involves.
What a Bookkeeper Does NOT Do
A bookkeeper is not a tax strategist. They don't file business tax returns (that's the CPA's job). They don't provide advice on entity structure, retirement planning, or tax reduction strategies. And they don't give you high-level financial guidance on pricing, growth decisions, or business valuation.
What Does a Bookkeeper Cost?
Outsourced construction bookkeeping typically runs $400–$1,500 per month for Iowa contractors depending on transaction volume and scope. See our detailed guide on how much a bookkeeper costs for a small business in Iowa.
What Does a CPA Do?
The Tax Strategist and Compliance Expert
A Certified Public Accountant (CPA) is a licensed professional who has passed the CPA exam and met state-specific experience and education requirements. For a small business contractor, the CPA's role typically includes:
- Filing your business tax return (Form 1120S for S-Corps, Schedule C for sole props, Form 1065 for partnerships)
- Filing your personal income tax return (Form 1040)
- Proactive tax reduction planning throughout the year
- S-Corp setup and ongoing compliance
- Retirement plan strategy
- Entity structure advice
- Representation in IRS audits or inquiries
- Financial statement review or compilation if required by a bank or bonding company
The Difference Between a Tax Preparer and a CPA
Many small businesses use a tax preparer who is not a CPA — an enrolled agent, a franchise tax service, or a general accountant. These professionals can legally prepare tax returns, but they typically don't provide the depth of proactive planning that a construction-specialized CPA provides. The difference in annual tax savings between a reactive tax preparer and a proactive construction CPA can easily be $10,000–$25,000 per year.
What Does a CPA Cost for a Contractor?
For a small to mid-size contractor, annual CPA fees typically run $2,500–$6,000 for tax preparation and quarterly planning. More comprehensive year-round engagements that include close coordination with your bookkeeping cost more but deliver substantially more value. See our pricing page for specifics.
What Does a CFO Do?
The High-Level Financial Strategist
A Chief Financial Officer (CFO) is the senior financial executive of a business — responsible not just for accurate record-keeping or tax compliance, but for the strategic financial direction of the company. For a contracting business, CFO-level services typically include:
- Monthly financial performance reviews and KPI analysis
- Cash flow forecasting and management (13-week cash flow models)
- Pricing strategy and margin analysis
- Overhead allocation and cost structure optimization
- Capital investment decisions (buy vs. lease equipment, when to expand)
- Bonding capacity analysis and bank relationship management
- Business valuation and exit planning
- Budgeting and financial forecasting for the year ahead
Do Small Contractors Need a CFO?
Full-time CFOs are typically only feasible at $10M+ in revenue — a full-time CFO in Iowa earns $100,000–$180,000 per year. But fractional CFO services, where a CPA firm provides CFO-level guidance on a part-time or monthly basis, make this accessible to contractors doing $1M–$5M in revenue for a fraction of that cost.
The contractors who grow fastest are almost always the ones getting regular financial reviews with someone who is looking at their numbers strategically, not just compliantly. Read our overview of KPI tracking for general contractors to see what this looks like in practice.
Which Do You Need Right Now? A Framework by Revenue Stage
Under $250K Revenue (Early Stage)
At this stage, you need a bookkeeper who can keep clean records and a CPA who files your return and gives you basic tax guidance. You don't need a full CFO engagement yet. The priority is getting your books clean, your entity structure right (S-Corp evaluation), and your tax deductions captured.
$250K–$1M Revenue (Growth Stage)
Now you need a construction-specialized bookkeeper doing job costing, a CPA doing quarterly tax reviews, and the beginning of CFO-level thinking around cash flow and margins. Many firms at this stage get all three from a single outsourced accounting partner who provides bookkeeping + CPA services as an integrated package.
$1M–$3M Revenue (Scaling Stage)
At this stage, you need full-service outsourced accounting — professional bookkeeping with job costing, proactive CPA oversight, and regular fractional CFO reviews. The difference between contractors who successfully scale through this range and those who plateau often comes down to financial visibility and the quality of their accounting support.
$3M+ Revenue (Mature Stage)
Contractors at this level typically benefit from dedicated fractional CFO services, monthly financial reviews, and deeper strategic planning. Some will start to bring part of the accounting function in-house while keeping CPA and CFO advisory outsourced.
Can One Firm Provide All Three?
Yes — and for most small to mid-size contractors, this is the ideal arrangement. Getting your bookkeeping, CPA services, and CFO advisory from the same firm means all three functions are integrated and coordinated. Your bookkeeper's work directly informs your CPA's tax planning. Your CPA's tax plan informs your CFO-level strategy. You're not managing three separate relationships or dealing with information gaps between providers.
This is exactly the model we use at Performance Financial. Our construction clients get construction-specialized bookkeeping, proactive CPA-level tax planning, and CFO-level financial reviews — all integrated under one roof.
Performance Financial — Bookkeeping, CPA & CFO Services for Iowa Contractors
We are Performance Financial CPA, Accounting & Tax — a Des Moines firm that delivers bookkeeping, tax strategy, and CFO-level guidance for Iowa and Midwest contractors.
We work with contractors across Des Moines, Ankeny, West Des Moines, Grimes, Johnston, Cedar Rapids, and throughout Iowa.
Book a Tax & Accounting Analysis today. We'll assess exactly where you are, what you need, and how we can help — at a price that makes sense for your revenue stage.
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