An outsourced (part-time) Finance Director gives a UK SME senior financial leadership, including management accounts review, cash flow forecasting, board reporting and funding support, for a set number of days a month. An in-house FD makes sense once the business needs daily finance leadership, manages a sizeable finance team or has complex group reporting.
Many UK businesses reach a stage where their bookkeeper or external accountant can't give them the forward-looking financial leadership they need. The answer is often a Finance Director, but not necessarily a full-time one.
What an outsourced FD does
- Reviews monthly management accounts and explains what they mean
- Builds and maintains cash flow forecasts and annual budgets
- Prepares board packs and attends board meetings
- Leads conversations with banks, lenders and investors
- Improves finance processes, systems and controls
- Supports pricing, hiring and investment decisions
Outsourced FD vs in-house FD
| Outsourced / part-time FD | In-house FD | |
|---|---|---|
| Commitment | Agreed days per month | Full-time employee |
| Cost | Monthly fee | Salary, bonus, pension, NI and benefits |
| Flexibility | Scale up or down | Fixed |
| Experience | Draws on many businesses | Deep knowledge of one business |
| Best for | Growing SMEs, owner-managed businesses | Larger or more complex organisations |
Signs you're ready for an FD
- You're raising finance, from a bank loan to equity investment
- You don't trust your cash flow beyond the next few weeks
- The board or shareholders want better reporting
- You're planning an acquisition, exit or international expansion
- Growth is outpacing your finance processes
How Avore Solutions can help
Our outsourced finance director and virtual CFO services support UK SMEs with management accounts, forecasting, board reporting and funding readiness. Book a free consultation to discuss the right level of support.
Frequently asked questions
What is the difference between a Finance Director and a CFO?
In the UK the title Finance Director (FD) is traditionally used for the senior finance role in SMEs, while CFO is more common in larger groups and in the US. The responsibilities are broadly similar: strategy, reporting, cash and funding.
How many days a month does a part-time FD work?
It varies with your needs. Many SMEs start with a couple of days a month and add more around year end, budgeting season or a funding round.
Can an outsourced FD attend board meetings?
Yes. Preparing board packs, presenting results and advising the board is a core part of the role.