Contingency vs. Hourly Consultants: Which Financial Recovery Model Actually Works

You've decided to look for money your business might be leaving on the table. The next question is who should look for it — and how you should pay them.

Three real options exist. Each has a different incentive structure, and incentives drive outcomes more than expertise does.

Option 1: Hourly consultants ($150–$450/hour)

Big-four firms and boutique shops bill by the hour for financial reviews. Typical engagement: $8,000–$25,000 for a 2–4 week analysis.

Upsides - Deep expertise, credentialed professionals - Useful for complex cases: M&A, restructuring, litigation

Downsides - You pay regardless of what they find - Incentive is to bill hours, not to maximize recovery - Small findings ($5K–$20K) don't justify the fee

Best fit: businesses with known complex issues and budgets over $100M.

Option 2: In-house hire ($85K–$140K/year + benefits)

Hire a controller or FP&A analyst to find leaks internally.

Upsides - Continuous coverage, deep business context - Builds institutional knowledge

Downsides - 12-month payback minimum before ROI shows - Same person runs ops — rarely has time to actually hunt for leaks - Tax credits, grants, and cross-jurisdictional work need specialists the hire won't have

Best fit: businesses with >$10M revenue and recurring complex work.

Option 3: Contingency recovery (a percentage of what's found)

You pay nothing upfront. The recovery firm runs a diagnostic, identifies leaks, executes recovery work, and takes a percentage of the actual money recovered.

Upsides - Zero risk. If nothing is found, you pay nothing. - Incentive is perfectly aligned: the firm earns only by finding real money - Specialists per category — SR&ED, vendor negotiation, payroll optimization — rather than one generalist

Downsides - Percentage fee can feel high on large recoveries - Only works for categories where recovery is measurable (tax credits, refunds, negotiated savings — not strategic advisory)

Best fit: most SMBs with $500K–$50M in revenue who suspect they're leaving money on the table but can't justify a consultant retainer.

The honest math

If a consultant finds $30,000 in recoverable leaks: - Hourly ($12,000 engagement): net = $18,000. Your risk: the entire $12,000 if they find nothing. - Contingency: a percentage of recovered amount. Your risk: zero.

Contingency wins on expected value in most cases — your downside is capped at zero, and the firm's upside is capped by the dollar amount they actually find.

Fruxal runs on this model because the incentives are honest. The diagnostic is free; pricing for the recovery program is discussed on a free call after you've seen your full leak report. Start your free scan