Fractional Head of Finance

Fractional Head of Finance

FD Capital places fractional Heads of Finance for UK businesses that need experienced senior finance leadership above Financial Controller level — but where the business is not yet at the scale or stage that justifies a full CFO appointment. The Head of Finance title is used most commonly in businesses in the £5m to £50m revenue range: a senior finance professional who owns the management accounts, manages the finance team, leads the budget and forecast process, provides commercial analysis to the MD or CEO, and handles the banking and audit relationships — all on a part-time basis. Adrian Lawrence FCA, founder of FD Capital and a Fellow of the ICAEW, leads FD Capital’s fractional executive practice. We have placed fractional Heads of Finance, fractional Finance Directors and fractional CFOs into growing businesses since 2018.

Call 020 3287 9501 or email recruitment@fdcapital.co.uk. Introductions typically within one to two weeks of brief.

Head of Finance vs CFO vs Financial Controller

Understanding which level of fractional finance leadership a business needs avoids overpaying for a CFO skill set when a Head of Finance is the right profile — and equally avoids under-investing in a Financial Controller when the business actually needs strategic finance leadership.

The fractional Financial Controller is the right appointment when a business primarily needs its accounting function managed properly — month-end close, balance sheet reconciliations, statutory accounts, audit management, VAT and compliance. The FC is focused on financial stewardship and control. See our Fractional Financial Controller page.

The fractional Head of Finance — this page — is the right appointment when a business needs all of the above plus commercial finance leadership: budgeting and forecasting, management reporting with meaningful commentary, banking relationship management, financial input into operational decisions, and a trusted senior finance presence that can represent the business externally. The Head of Finance manages the FC or accounting team beneath them and is the primary finance interface with the CEO or MD.

The fractional CFO is the right appointment when the business needs Board-level strategic finance leadership — investor relations, capital raising, M&A, covenant management in a leveraged structure, or CFO-level engagement with a PE sponsor or institutional shareholders. See our Fractional CFO and Outsourced CFO pages.

Many businesses start with a fractional Head of Finance and progress to a fractional CFO as they scale — the natural transition point is typically when the business is raising external capital, taking on PE backing, or approaching a sale process.

What a Fractional Head of Finance Does

Management accounts and financial reporting

The fractional Head of Finance owns the monthly management accounts — not just overseeing their production but ensuring they are delivered on time, accurately reflect the business’s financial position, and are presented with commercial commentary that enables the MD and operational leaders to make informed decisions. In many businesses, the appointment of a fractional Head of Finance transforms the quality and timeliness of management reporting from the first month.

Budgeting, forecasting and financial planning

The fractional Head of Finance leads the annual budget process — working with department heads to build realistic cost budgets, challenging assumptions, consolidating the group plan and presenting it to the MD and board. Rolling forecasts — updated monthly or quarterly to reflect current trading — provide the business with a forward-looking financial view that the management accounts alone cannot give. The Head of Finance also builds the financial models the business needs for specific decisions: pricing analysis, investment appraisals, scenario modelling for strategic options.

Finance team management

The fractional Head of Finance manages the finance team within their contracted days — setting priorities, reviewing work quality, developing staff and ensuring the month-end calendar is met. In businesses without a dedicated Finance Director or CFO, the Head of Finance is the most senior person in the finance function and carries responsibility for hiring, developing and managing the team.

Banking and external relationships

The fractional Head of Finance manages the business’s primary banking relationship — providing the bank with management accounts, monitoring compliance with any financial covenants, and representing the business professionally in banking conversations. They also manage the audit relationship, liaising with the external auditors at year end and ensuring the year-end close is completed to a standard that supports a clean and efficient audit. In businesses with invoice financing, asset finance or other lending arrangements, the Head of Finance manages the lender relationship and the associated reporting obligations.

Commercial finance support

The fractional Head of Finance provides the commercial finance analysis that helps the MD and operational leadership make better decisions — margin analysis by product, customer or channel; pricing support; cost reduction identification; capex appraisal; and the financial modelling that supports significant business decisions. This commercial dimension is what distinguishes a Head of Finance from a Financial Controller and is the primary reason many businesses need to go above FC level in their fractional finance appointment.

Cash flow management

The fractional Head of Finance maintains a rolling cash flow forecast, monitors working capital — debtor days, creditor days, stock levels — and ensures the business always has sufficient liquidity to operate and invest. For growing businesses, cash flow management is often the most pressing day-to-day financial responsibility: revenue growth does not automatically translate to positive cash flow, and the Head of Finance ensures the business understands and manages the cash implications of its growth decisions.

Businesses That Benefit Most from a Fractional Head of Finance

Owner-managed businesses scaling beyond founder control

Owner-managed businesses in the £5m to £25m revenue range — particularly those that have grown rapidly from a standing start — frequently reach a point where the founder or MD is no longer able to provide adequate financial oversight alongside running the business. A bookkeeper or accounts assistant has been managing the finances, but the business needs proper management accounts, a budget, cash flow visibility and someone who can challenge the numbers with commercial intelligence. A fractional Head of Finance working two to three days per week provides this for a fraction of the cost of a full-time hire.

Businesses in a growth or transition phase

Businesses going through a significant growth phase — entering new markets, adding headcount rapidly, acquiring customers at pace — need more financial oversight than their existing finance function provides but may not yet justify a permanent, full-time senior finance appointment. A fractional Head of Finance scales with the business: the engagement can increase from two to three days per week as the financial complexity grows, and converts to a permanent appointment when the business reaches the scale where that is the right decision.

Businesses preparing for external investment or sale

A business approaching a fundraising round, a PE investment process or a trade sale needs its financial house in order before it goes to market. Management accounts that are produced late, budgets that have not been formally approved, and banking relationships that are not being professionally managed all create friction in investment and sale processes. A fractional Head of Finance brought in twelve to eighteen months before a planned transaction can transform the quality of the business’s financial infrastructure and present a significantly stronger financial picture to potential investors or acquirers. FD Capital’s PE executive search practice regularly introduces fractional finance leaders to businesses preparing for a first institutional investment.

Businesses between permanent finance appointments

When a Finance Manager or Financial Controller leaves — particularly at short notice — a fractional Head of Finance can bridge the gap while a permanent replacement is recruited, ensuring no loss of financial oversight, reporting continuity or external relationship management during the transition.

Fractional Head of Finance Costs UK 2026

A full-time Head of Finance in a mid-market business typically costs £70,000–£95,000 per annum in base salary. The fractional model at two days per week typically costs 20–35% of that — the economic logic is clear for businesses where the finance leadership workload does not justify a full-time appointment. For comparison see our Fractional CFO Pricing Guide and Financial Controller Salary Guide.

Related Fractional Finance Services

Businesses considering a fractional Head of Finance may also be interested in: Fractional CFO | Outsourced CFO | Fractional Financial Controller | Fractional Finance Director | Part-Time CFO | Interim CFO | Fractional CFO Pricing | Financial Controller Recruitment | Management Accountant Recruitment | FC Salary Guide