WHY A FRACTIONAL FINANCE DIRECTOR CAREER ISN’T FOR EVERYONE

The role of a portfolio finance director (FD) or fractional chief financial officer (CFO) is growing in popularity, especially as ambitious SMEs and scale-ups seek high-level expertise without the full-time cost.

But let’s be clear: this isn’t a role for every accountant, particularly those without significant commercial and strategic experience working in-house.

If your background is solely in practice—focusing on compliance, audit, and year-end reporting—you might find the leap into a fractional FD career a daunting one. Here’s why:

It’s Not About the Numbers Alone

In practice, the focus is often on precision and compliance. While these are, of course, critical skills, being a fractional FD is far more about what lies beyond the numbers. You’re not just preparing accounts or advising from a distance; you’re rolling up your sleeves and stepping into the heart of a business.

You need to:

• Understand the story behind the numbers: Why are profits stagnating despite growing revenues? What’s driving unexpected cash flow fluctuations?
• Communicate complex financial information simply: Business owners want actionable insights, not jargon. Your ability to distil financial data into strategic decisions is invaluable.

Strategy First, Spreadsheets Second

Fractional FDs must think like business leaders, not accountants. Whether it’s helping a founder secure funding, scaling operations, or planning an exit, the role demands commercial acumen.

This often means navigating uncharted waters:

• Partnering with CEOs to shape long-term strategy.
• Leading commercial negotiations and investment discussions.
• Anticipating market trends and building resilience into business plans.

These are not skills you can acquire overnight, especially if your career has been focused on producing accounts rather than driving decisions.

Practical Business Experience is Crucial

In-house finance roles prepare you to deal with the messy, fast-paced realities of running a business. They teach you to:

• Balance competing priorities under tight deadlines.
• Adapt quickly when the unexpected happens (because it always does).
• Work cross-functionally, collaborating with sales, marketing, and operations teams to align financial goals with business objectives.

If your experience is limited to practice, you might lack exposure to the day-to-day challenges businesses face, making it harder to deliver the pragmatic advice that clients need.

Leadership is Non-Negotiable

As a fractional FD, you’re not just a finance expert—you’re a trusted partner, a leader, and often a change agent. This requires a combination of confidence, tact, and the ability to influence others.

• Confidence to challenge: Business owners value FDs who can ask the hard questions and push back when necessary.
• Empathy and communication: You’re working with people who may not ‘speak finance’, so translating your advice into something tangible is key.
• Adaptability: No two clients are the same, and you’ll need to tailor your approach to suit different industries, company sizes, and leadership styles.

Is It Worth the Challenge?

Absolutely. For those with the right blend of experience, a fractional FD career offers incredible variety, the chance to make a real impact, and the freedom to design a work-life balance that suits you.

But it’s not for everyone—and that’s okay. If you’re considering making the leap, take stock of your skills and experience. Have you spent time working in-house? Do you understand the complexities of running a business? Are you ready to step up as a strategic leader, not just a technical expert?

If you can answer ‘yes’ to these questions, a portfolio career could be the perfect next step. If not, it might be worth gaining that all-important in-house experience first.

The role of a fractional FD is as exciting as it is demanding, but it’s not something you can excel at without the right foundations. For practice accountants who’ve spent their careers focused on compliance and reporting, transitioning to this kind of strategic, commercially-driven role isn’t just a career move—it’s a full blown career reinvention. And just as a Fractional CFO couldn’t become an accounting firm partner overnight, anyone who’s spent most of their career in practice is likely have to address some skill and experience gaps to make a move to being a commercial and strategic Portfolio FD.

If you’re considering making the leap into a fractional FD career but want to understand what’s truly involved (and whether it’s right for you). As someone who’s been there, I know the opportunities and challenges firsthand. Let’s get your journey started.