When does your business need a finance director?
You probably need FD support when big decisions are being made on gut feel: hiring, pricing, borrowing, buying a business or planning an exit. Most businesses turning over £1m to £20m don't need a full-time FD, but they do benefit from an outsourced FD for a few days a month.
Ten signs you've outgrown your current set-up
- You get your numbers weeks after the month ends, if at all.
- Cash surprises you, good or bad.
- You don't know which products, customers or sites actually make money.
- Your bank or investors want forecasts you can't produce.
- You're about to hire, expand, borrow or buy.
- Prices haven't been reviewed against real margins.
- Your accountant only talks to you once a year.
- Board meetings have no proper pack.
- Your finance person has left or is overloaded.
- You want to sell the business in the next few years.
What does an outsourced FD actually do?
- Monthly management accounts and KPIs you can act on
- A rolling 13-week cash flow and 12 to 36 month forecast
- Pricing, margin and cost reviews
- Board packs and lender or investor reporting
- Funding: preparing the case and dealing with the bank
- Coaching your bookkeeper or finance team
Outsourced, interim or full-time?
| Option | Best for |
|---|---|
| Outsourced (part-time) FD | Growing businesses that need senior finance input a few days a month |
| Interim FD | Covering a departure, a sale, a refinance or a turnaround |
| Full-time FD | Larger businesses with complex groups, many sites or investors on the board |
Frequently asked questions
How much does an outsourced FD cost?
It depends on days and scope. Many businesses start with one or two days a month on a fixed monthly fee, far less than a full-time salary.
What turnover do you need before hiring an FD?
There's no fixed figure, but businesses from around £1m upwards often benefit from part-time FD support.
Can an outsourced FD work with my existing accountant?
Yes. Many work alongside the year-end accountant and your bookkeeper.
How quickly can an interim FD start?
Often within days, especially when cover is urgent.
This guide is general information for UK taxpayers and was correct when last reviewed. Tax rules change, so check your own position with a qualified adviser.
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