SME Finance Director

FD Capital is a specialist recruiter for Finance Directors in small and medium-sized businesses across the UK. We work with owner-managers, CEOs and MDs at businesses with revenues from £1m to £30m — the stage at which a growing SME most commonly needs its first or next senior finance leader. Most shortlists are delivered within three to seven working days.

The decision to hire a Finance Director is one of the most consequential a growing SME can make. Get it right and the FD transforms the business — building the financial infrastructure for growth, taking the financial burden off the CEO’s desk, and improving the quality of decision-making at board level. Get it wrong and you have an expensive hire who does not fit the culture or the complexity of the business. Finding the right match requires a recruiter who understands what SMEs actually need from a Finance Director, not just how to screen CVs.

FD Capital has been placing Finance Directors with UK SMEs since 2018. Call 020 3287 9501 to discuss what you need — we will give you honest advice on the right profile and the right engagement type for your business.

There is no precise revenue threshold at which a Finance Director becomes essential — but there are clear trigger points that consistently indicate the business is ready for one. If more than one of the following applies, it is almost certainly time to consider an FD appointment:

 

• The CEO is spending significant time on finance: If the MD or CEO is managing bank relationships, reviewing management accounts, or leading conversations with investors or lenders, they are doing a job that should belong to someone else. The opportunity cost — time not spent on customers, strategy, or operations — is usually larger than the cost of the FD.
• The business has outgrown its bookkeeper or accountant: External accountants and internal bookkeepers are essential at early stage, but they typically cannot provide the forward-looking financial analysis, cash flow forecasting, or strategic input that a growing business requires. The gap between what the accountant provides and what the business needs is often where an FD first adds value.
• The business is preparing for investment or a fundraise: Investors — whether angel investors, VCs, or PE funds — expect institutional-quality financial reporting. An FD who understands the fundraising process, can prepare investor-ready management accounts, and can lead the finance workstream in due diligence is essential at this stage.
• Revenue is growing faster than the finance function can handle: Rapid growth typically outpaces financial systems and processes. Management reporting becomes unreliable, cash flow management deteriorates, and financial controls weaken. An FD’s first job in a fast-growing SME is often to stabilise and rebuild the finance function so it can support the business at its next stage.
• The business is acquiring, being acquired, or refinancing: Transactions of any kind require senior finance leadership with transaction experience. An FD who has been through deals understands what acquirers or lenders need, can prepare the business for due diligence, and can manage the finance workstream without disrupting day-to-day operations.
• The current FD is leaving: Succession planning for a Finance Director role is often neglected until the incumbent hands in their notice. Whether the replacement is permanent, interim, or fractional, FD Capital can move quickly to minimise the gap.

The right engagement type depends on the size of the business, the nature of the requirement, and the budget available. For most SMEs, the choice is between fractional, part-time, interim, or permanent — and the differences matter.

 

Fractional Finance Director

A fractional Finance Director works with multiple clients simultaneously, dedicating one to three days per week to each. This is typically the most cost-effective way for an SME to access board-level financial leadership. Fractional FDs suit businesses with revenues of £1m–£15m that need strategic finance input and improved reporting without the cost of a full-time appointment.

A fractional FD is not a junior or temporary solution — they are typically senior Finance Directors who have chosen a portfolio career rather than single-employer employment. The quality of candidate available on a fractional basis is often higher than what the same budget would secure in a permanent part-time hire.

Part-Time Finance Director

A part-time Finance Director holds a fixed, contracted number of days per week — usually two to three. Unlike fractional arrangements, part-time roles are often structured as employment contracts rather than consultancy agreements. This suits businesses that want the FD embedded in the organisation on a consistent basis but cannot yet justify a full-time appointment.

Interim Finance Director

An interim Finance Director is brought in for a defined period — typically three to twelve months — to cover a vacancy, lead a specific project, or provide urgent support during a period of change. For SMEs, interims are most commonly used to bridge the gap between a departing FD and a permanent replacement, or to provide specialist capacity during a fundraise, acquisition, or restructuring.

Permanent Finance Director

A permanent Finance Director recruitment process is typically appropriate for SMEs with revenues above £10m where there is sufficient finance function complexity to justify a full-time board-level appointment. FD Capital runs executive search processes for permanent FD appointments, typically delivering shortlists within two to three weeks.

 

Engagement Type	Best Suited To	Typical Cost
Fractional FD	£1m–£15m revenue, first FD hire, ongoing basis	£800–£1,500/day, pro-rated
Part-Time FD	£5m–£20m revenue, consistent embedded support	£60k–£100k pro-rata
Interim FD	Gap cover, transaction support, urgent need	£600–£1,200/day
Permanent FD	£10m+ revenue, full-time board-level role	£90k–£140k base salary

The role of a Finance Director in an SME covers a broader range of responsibilities than its equivalent in a large business, where different functions typically handle tax, treasury, FP&A, and reporting separately. In an SME, the FD often owns all of these — and more. The most important areas are:

 

• Management accounts and board reporting: Producing monthly or quarterly management accounts that give the CEO and board a clear, timely picture of financial performance. In many SMEs, this reporting is either absent or produced weeks after month-end by the external accountant. One of the first changes a new FD makes is to bring reporting in-house, on-time, and in a format that actually drives decision-making.
• Cash flow forecasting and management: Cash flow is the most common cause of SME failure. An FD builds rolling cash flow forecasts, identifies funding gaps before they become crises, and manages working capital — receivables, payables, and stock — to ensure the business remains solvent as it grows.
• Budgeting and financial planning: An FD translates the CEO’s growth ambitions into a financial model — budgets, three-year plans, and scenario analysis. This provides a financial framework for decision-making and a baseline against which actual performance is measured.
• Bank and lender relationships: Managing relationships with the business bank, any invoice finance providers, and other lenders. This includes covenant monitoring, reporting obligations, and refinancing discussions when required. The financial controller recruitment page covers the distinction between FC-level and FD-level finance responsibilities if you are unsure which appointment is right.
• Tax compliance and planning: Working with the external accountant or tax adviser on corporation tax, VAT, R&D tax credits, and payroll taxes — ensuring the business is compliant and takes advantage of available reliefs. The HMRC guidance on small business taxes sets out the core obligations; the FD ensures the business meets them.
• Fundraising and investor relations: For businesses seeking equity investment or debt finance, the FD leads the finance workstream — preparing investor packs, financial models, and due diligence materials, and managing relationships with existing and prospective investors.
• Finance team management: In businesses with an existing finance team, the FD manages and develops the team — typically a mix of bookkeepers, management accountants, and credit controllers. In early-stage SMEs, the FD sometimes operates alongside a single part-time bookkeeper.
• Financial controls and systems: Reviewing and strengthening financial controls, upgrading accounting systems where necessary, and ensuring the business has appropriate processes for authorisations, expenses, and treasury management. This is particularly important in fast-growing businesses where controls often lag the pace of growth.

Hiring a Finance Director for the first time is a different process from replacing one. The business is often adding a function that has not previously existed at board level, and the new FD will need to build as well as manage. There are several things worth knowing before starting the process:

 

• Define the problem first, not the job title: The most common mistake in a first FD hire is writing a job description before understanding the actual problem. Is the business struggling with unreliable reporting? Cash flow surprises? Fundraising? The answer shapes the profile — a commercially-oriented FD with fundraising experience is a different hire from an operationally-focused FD with systems and process expertise.
• Consider fractional before permanent: Many first-time FD hires benefit from starting fractional and moving to permanent once the business understands what it actually needs. A two-day-per-week fractional FD can often achieve 80% of the outcome of a full-time hire at 40% of the cost, while giving the CEO time to assess whether the chemistry works before committing to a permanent employment contract.
• Expect a stabilisation phase: A new FD joining an SME without a strong finance function will typically spend the first two to three months stabilising — establishing reliable reporting, reviewing the chart of accounts, improving month-end processes, and assessing the team. This is normal and necessary, but it means the strategic impact is sometimes not felt until month four or five.
• Qualification matters but is not everything: Most FD Capital candidates are ACA, ACCA, or CIMA qualified — see the ICAEW chartered accountant qualification overview for background on the ACA. But qualification alone does not predict performance. SME-specific commercial experience, the ability to work without a large team behind them, and a pragmatic approach to problem-solving are often more important determinants of success than the letters after the name.
• IR35 considerations: Fractional and interim FDs are typically engaged through a limited company on a consultancy basis. The IR35 rules determine whether this engagement should be treated as employment for tax purposes. FD Capital can advise on status determination — see our IR35 status guidance for detail.

FD Capital was founded to bring Finance Director-level expertise to growing businesses that could not justify a full-time hire at standard market rates. Since 2018, we have placed fractional, part-time, interim, and permanent FDs across the UK, with a particular concentration in SMEs at the critical £2m–£20m revenue stage.

 

Our approach to SME FD searches:

 

• We take a detailed brief — covering the business’s stage, sector, revenue, the existing finance function, and the specific challenges the FD needs to address. The brief shapes the candidate search, not just the job spec.
• We match against our active candidate network rather than advertising openly. Most of our best SME FD candidates are not actively job-hunting — they are in portfolio careers or between assignments. Accessing them requires relationships, not job boards. For businesses that have private equity backing or are seeking investment, we identify candidates with relevant transaction and investor reporting experience.
• We present a shortlist of typically three to five candidates within three to seven working days. Each note summarises the candidate’s SME-specific experience, current availability, and rate or salary expectation.
• Where the requirement is for a turnaround Finance Director — a business in distress or undergoing significant restructuring — we have a dedicated panel of turnaround-experienced FDs available at short notice.
• We offer an outsourced Finance Director service for SMEs that want the full function provided on a managed basis, rather than a standalone FD hire. This includes management of the wider finance team and can include virtual or remote-first arrangements.

Begin the recruitment process by contacting our specialist FD recruitment team at recruitment@fdcapital.co.uk or by calling us at 020 3287 9501 for a no-obligation consultation.

Have one of our specialists call you back to discuss your hiring needs.