Outsourced FD

Outsourced Finance Director vs Other Engagement Models

 

Model	Key Characteristic	Best Suited To
Outsourced FD	FD Capital manages the engagement; single contract with FDC	Businesses wanting reduced admin and a managed arrangement
Fractional FD	Direct engagement with the FD’s limited company	Businesses comfortable managing the FD directly
Part-Time FD	Employment contract; fixed days per week	Businesses wanting the FD fully integrated as an employee
Virtual FD	Primarily remote; attends in person for key meetings only	Remote-first businesses, distributed teams
Interim FD	Fixed-term, often full-time; designed for gap cover	Urgent vacancy, transaction support, specific projects

 

If you are unsure which model is right for your business, call us on 020 3287 9501. We will talk through the options honestly — including cases where we think a financial controller might be the right level of appointment rather than an FD.

 

Outsourced FD Engagement Structures and Costs

FD Capital can structure outsourced Finance Director engagements in several ways, depending on what works best for the business. All arrangements are flexible and can be adjusted as the business grows. For detailed salary benchmarking across all engagement types, see our Finance Director salary guide.

 

Day-Rate Retainer

The most common structure for outsourced FDs. The FD works a fixed number of days per week or month, typically one to three days, and is invoiced at an agreed day rate. This provides flexibility to scale up or down as the business’s needs change. Day rates for outsourced FDs typically range from £600 to £1,200 per day depending on sector, seniority, and location.

Monthly Retainer

For businesses that want cost predictability, a fixed monthly retainer covering a defined scope of services is often preferable. The retainer is agreed upfront — covering, for example, management accounts production, a monthly board meeting, and an agreed number of advisory hours — and invoiced at the start of each month.

Project-Based Engagement

For businesses that need an outsourced FD for a specific project — a fundraise, a refinancing, an acquisition, or a period of rapid growth — a project-based engagement defines the scope, deliverables, and timeline upfront. This is particularly common for businesses preparing for investment, where the FD is engaged to lead the finance workstream. See our fundraising and transaction support page for detail on this type of engagement.

Payroll Options

FD Capital can accommodate several payroll structures for outsourced engagements. The FD can operate through their own personal service company, through an umbrella payroll service, or on FD Capital’s payroll — in which case we invoice you directly and manage all employer-side obligations. We advise on the IR35 implications of each arrangement and ensure your business is correctly structured from a tax compliance perspective.

 

Engagement / Revenue Band	Indicative Cost
1 day/week outsourced FD — £1m–£5m	£2,400–£4,800 per month
2 days/week outsourced FD — £5m–£15m	£4,800–£9,600 per month
3 days/week outsourced FD — £10m–£25m	£7,200–£14,400 per month
Project-based — fundraise or transaction	Day rate £700–£1,200; typically 30–60 days

How FD Capital Sources Outsourced Finance Directors

FD Capital recruits exclusively at Finance Director and CFO level. Our entire candidate network is built around senior finance professionals — Finance Directors, CFOs, and Heads of Finance — who are available for outsourced, fractional, or part-time arrangements. We do not run a general finance recruitment desk, which means our knowledge of the outsourced FD market is deeper and more current than a generalist competitor.

 

Our process for outsourced FD assignments:

 

• We take a detailed brief covering the business’s stage, sector, revenue, existing finance team, and the specific challenges the outsourced FD needs to address. We also establish the preferred engagement structure — days per week, in-person versus remote, and payroll arrangement.
• We match against our active network of FDs who are available for outsourced engagements. Most of the best candidates are not actively job-hunting — they are in portfolio arrangements or between assignments. Accessing them requires relationships built over time, not job board postings.
• We present a shortlist of typically three to five candidates within three to seven working days. Each candidate note summarises sector experience, current availability, preferred working model, and day rate or retainer expectation.
• We remain involved after placement. For outsourced engagements where FD Capital is managing the payroll, we conduct regular check-ins with both the client and the FD to ensure the arrangement is delivering as expected. If it is not, we can make adjustments — including, if necessary, introducing a replacement — without requiring the business to run a new recruitment process.

 

Qualifications and Experience of FD Capital Outsourced FDs

All FD Capital outsourced Finance Directors are qualified accountants — the majority are ACA or ACCA, with a significant proportion also holding CIMA. The ICAEW ACA qualification is the most common background for FDs who have come through practice and into industry; CIMA is more common for FDs who have built their careers in commercial finance roles. Both are entirely appropriate for outsourced FD engagements depending on the nature of the business.

Beyond qualification, the characteristics that distinguish effective outsourced FDs are practical rather than academic. They are self-managing — comfortable working independently without a team around them. They are commercially oriented — focused on the business’s performance, not just its compliance. And they have built careers in companies of a comparable size and complexity to the businesses they are now serving, which means they understand the real constraints an SME or growth-stage business operates under.

 

Frequently Asked Questions

What is the difference between an outsourced FD and a fractional FD?

In practical terms, the roles are very similar — both involve a senior Finance Director working part of the week for your business. The distinction is primarily administrative: an outsourced FD is typically engaged through FD Capital under a service agreement, while a fractional Finance Director is usually engaged directly by you through their limited company. The outsourced model suits businesses that want a more managed, lower-administration arrangement.

How many days per week does an outsourced FD typically work?

Most outsourced FD engagements start at one to two days per week and increase as the business grows. For a business with revenues below £5m, one day per week is often sufficient to cover management accounts, cash flow, and board reporting. As revenues approach £10m and the finance team expands, two to three days per week becomes more typical. We size the engagement based on the actual scope of work rather than a standard package.

Can an outsourced FD work remotely?

Yes. Many outsourced FD engagements are hybrid or remote-first — the FD handles routine work remotely and attends in person for board meetings and key management sessions. For businesses that want a fully remote arrangement, see our virtual Finance Director page, which covers remote-first FD engagements in more detail.

What sectors do your outsourced FDs cover?

FD Capital outsourced FDs cover all major UK business sectors — technology and SaaS, professional services, manufacturing, construction, retail and e-commerce, healthcare, hospitality, and financial services. We aim to match candidates with sector-specific experience where the brief requires it, and will advise on candidate availability before committing to a search.

Can an outsourced FD manage our existing finance team?

Yes. Managing an existing finance team — typically bookkeepers, management accountants, and credit controllers — is a core part of the outsourced FD role. The FD reviews the team’s work, sets priorities, provides direction, and develops team members over time. This is particularly valuable for businesses that have a capable but unsupervised finance team that would benefit from experienced senior oversight.

What happens if the outsourced FD does not work out?

For engagements where FD Capital is managing the relationship under a service agreement, we take responsibility for making it work. If the FD is not delivering, we will address it — whether through adjusting the scope, having a direct conversation with the FD, or introducing a replacement. You are not left to manage a difficult conversation with an individual contractor; we handle it. This is one of the practical advantages of the outsourced model over a direct fractional engagement.

Adrian Lawrence FCA, founder of FD Capital, provides outsourced Finance Director services for businesses that require the strategic and operational financial leadership of a senior FD without the overhead of a permanent appointment. As a Fellow of the ICAEW, Adrian understands that the outsourced FD model is most effective when it delivers genuine CFO-level strategic engagement rather than simply outsourcing accounting tasks, and the professionals placed through FD Capital’s outsourced FD service are senior finance leaders with board-level experience who provide substantive financial strategy alongside operational delivery. The outsourced FD service is particularly well-suited to businesses growing through the £5 million to £25 million turnover range, where the demands of financial management have outgrown part-time advisory support but full-time FD employment is not yet justified. Contact FD Capital to discuss an outsourced Finance Director arrangement for your business. About Our Founder FD Capital was founded by Adrian Lawrence FCA, a Chartered Accountant with over two decades of experience in finance leadership and executive search. Adrian holds a BSc from Queen Mary College, University of London and is a Fellow of the ICAEW. Before founding FD Capital he worked across private, listed, owner-managed and PE-backed organisations, giving him direct experience of the finance challenges and hiring decisions that CFOs are appointed to solve. He personally leads our most senior CFO searches and conducts candidate interviews himself — which is why our assessment process goes substantially deeper than a standard recruiter screen. Every brief Adrian takes is informed by having sat on both sides of the table. FD Capital operates in accordance with recognised executive search standards and professional recruitment best practices. We support the principles outlined in the UK government’s executive search code of conduct.

Call 020 3287 9501 or email recruitment@fdcapital.co.uk to discuss your outsourced Finance Director requirement. We will advise on the right engagement model, suitable candidates, and expected timelines — with no obligation.