What a part-time Finance Director can do for a growing SME

As a business grows, its finances become more demanding. Cash flow tightens. Decisions carry more weight. Reporting expectations rise. At the same time, hiring a full-time Finance Director is more commitment than many SMEs can justify. For these reasons, a part-time Finance Director – sometimes called a fractional or outsourced Finance Director – offers a practical middle ground. They bring senior financial leadership, but on a flexible basis that matches your stage of growth.

This guide explains how SMEs can benefit from part-time FD support, how the role works in practice, and how outsourced financial leadership can strengthen stability and growth.

1. What is a part-time Finance Director?

A part-time Finance Director is an experienced financial leader who works with your business on a flexible schedule. They may be a specialist FD or an accountant who offers their expertise in this way. They offer you strategic financial support without the cost or commitment of a full-time role.

A part-time FD commonly helps businesses that are:

• growing quickly;

• experiencing new financial pressures; or

• preparing for investment or expansion.

Their goal is simple: to give you clarity, control and confidence over your financial direction.

Once you’re clear on what a part-time Finance Director is, the next question is when your business might actually need one.

2. When a growing SME starts to need FD-level support

As financial demands increase, many SME owners reach a point where complexity grows faster than internal capacity. Common signs include:

• Cash flow becoming harder to predict

• Profitability not increasing in line with growth

• Rising payroll and operational costs

• More complex reporting needs

• Increased pressure from lenders or investors

• The company owner(s) spending too much time on finance

When these signs start to appear, bringing in a part-time FD can make a real difference – so what do they actually do in practice?

3. What a Part-Time FD Actually Does

A strong part-time or fractional FD focuses on the strategic financial leadership your business needs to grow sustainably. Their work usually includes:

Financial strategy and planning

• Setting clear commercial objectives

• Guiding long-term planning

• Supporting major decisions and growth opportunities

Cash flow management

• Creating rolling financial forecasts

• Highlighting risks early

• Helping the business maintain healthy working capital

Management reporting

• Preparing monthly management accounts

• Providing clear commentary and insights

• Helping directors understand the story behind the numbers

Financial controls and governance

• Improving processes and internal controls

• Supporting better risk management

• Ensuring the business remains audit-ready

Budgeting and scenario planning

• Preparing practical, realistic budgets

• Modelling “what if?” scenarios

• Helping to plan for investment or expansion

Support with lenders and investors

• Strengthening financial presentations

• Ensuring assumptions stand up to scrutiny

• Enhancing business credibility

A fractional FD becomes a trusted partner, helping leadership teams make confident, informed decisions.

4. Part-time vs full-time Finance Director – what’s the difference?

A part-time FD offers most of the benefits of a full-time FD, but with far more flexibility. This means SMEs can access senior-level support without taking on a permanent leadership salary. Below is a table showing the difference between the two kinds of finance director.

5. What are the benefits of using a part-time or outsourced Finance Director?

Many SMEs report that working with a part-time FD delivers immediate improvements. The most common benefits include:

• More predictable cash flow

• Clearer monthly reporting

• Better financial discipline across the business

• Stronger confidence in decision-making

• Improved planning for growth

• A calmer, more structured financial environment

With the right person in place, business owners often feel they have more time to focus on customers, operations and strategy.

6. Do you need a Finance Director or a Financial Controller?

A Finance Director is not the same as a Financial Controller, but it’s easy to confuse the two. Many growing businesses are unsure which role they really need.

• A Financial Controller focuses on accurate numbers, systems and month-end processes.

• A Finance Director focuses on strategy, leadership, forecasting and guiding financial decisions.

For SMEs, a part-time FD often provides the best of both worlds. It can also be highly beneficial if your fractional FD is also your accountant, providing integrated insight from someone deeply familiar with your books.

7. How to choose the right part-time FD

Selecting the right FD is important. In our experience of providing fractional Finance Director services, SMEs should look for someone who:

• Understands their sector

• Explains financial concepts clearly

• Has experience working with SMEs and dealing with HMRC

• Can support funding, planning and strategy

• Fits well with your culture and leadership style

• Adds challenge and insight, not just commentary

The right FD will help you think more clearly and plan more confidently.

8. THP’s Outsourced Finance Director Service

At THP, we support SMEs that want FD-level expertise without the cost of a full-time hire. Our Outsourced Finance Director service is designed for ambitious businesses that want clearer financial direction, stronger reporting and better decision-making.

We help by providing:

• Strategic financial guidance tailored to your growth

• Board-level reporting and performance insights

• Rolling cash flow forecasts and scenario planning

• Clear, structured management accounts

• Advice on improved financial controls and governance

• A financial sounding board for important decisions

Our service is flexible and built around your needs, whether you want support each month or occasional input at board level.

9. Next Steps

If your business is growing and you feel you’ve reached the stage where financial decisions carry more weight, a part-time or outsourced Finance Director could be the support you need. With the right guidance, you can grow with confidence, make better decisions, and bring more structure and control to your finances. Get in touch today to learn more.