Why Your SME Doesn’t Need a Full-Time Finance Director (Yet)
The challenges evolve as your business grows. You go beyond the bootstrapping days and start to think about scaling. At this stage, you might wonder, “Do I need a full-time Finance Director?”
For the majority of growing SMEs, the answer is not yet.
In fact, hiring a full-time FD too early drains resources and restricts flexibility when what you really need is strategic financial support that scales with you. That is where a fractional finance director really makes a difference.
The temptation to hire too soon
With increased turnover comes increased complexity. Suddenly, you’re managing multiple revenue streams, juggling cash flow ups and downs, and fielding questions from your accountant that you don’t have time to answer. It’s natural to think the next step is to bring in a full-time finance leader.
But before you sign that contract, pause.
A full-time Finance Director is a significant expense, and for many SMEs, that’s a big commitment – particularly when margins are tight or growth is still unpredictable.
You may not need that level of resource as yet. What you do want instead is access to the same level of expertise, but flexibly, in a way that fits your current stage of growth.
Why a full-time FD might not be the right move (yet)
Here are five of the most common reasons you may regret hiring a full-time Finance Director too early:
Cost outweighs value
A full-time FD salary can quickly consume profits. In many growing SMEs, the workload doesn’t yet justify a five-day-a-week strategic finance leader. You end up paying for capacity you don’t use.
You don’t need “corporate” finance yet
Many full-time FDs have come from large corporate backgrounds where the finance functions are mature and resourced. Within an SME, you often need a different mindset: pragmatic, hands-on, and commercially focused. A fractional FD is likely to be more experienced in working with leaner structures and able to adapt to your business realities.
You need flexibility, not formality
Your finance needs will vary. Sometimes you’ll need deep strategic planning; sometimes you’ll just need routine reporting. A part-time FD gives you precisely the level of input required when it’s required, without long-term cost or headcount commitment.
Your team isn’t ready yet
If either your internal processes, systems, or team are not fully established, a full-time FD will struggle to deliver immediate value. Often, it’s better to bring in a strategic partner who can build the foundations first – financial systems, forecasting tools, and reporting structures-so that you’re ready for a full-time FD later.
You risk losing agility
SMEs thrive on flexibility. Committing to a full-time senior role too soon can slow decision-making and increase fixed costs. A fractional FD offers the same strategic insight without sacrificing agility.
What your SME really needs instead: strategic finance
Before you consider a permanent FD, ask yourself whether what you actually need is strategic finance – the bridge between book-keeping and board-level strategy.
Strategic finance focuses on:
Forecasting and scenario planning
Cash flow and funding management
Aligning finance with your growth goals
Turning financial data into action
Helping you make confident investment and hiring decisions
This is delivered by a fractional or part-time Finance Director but flexibly, working with your leadership team to strengthen financial strategy without the overhead of a full-time salary.
The benefits of a fractional Finance Director
Increasingly, more and more SMEs are discovering the power of fractional finance director support. Here’s what makes it such an effective alternative:
Expertise on demand
This provides access to senior-level financial expertise, often gained in the role of Finance Directors in far larger businesses. They take that knowledge into your SME environment, scaled appropriately for your size and ambition.
Scalable support
As your business grows, so can your Fractional FD’s involvement-from a few days a month to several days a week. You scale your financial leadership as you scale your business.
Strategic insight, not just compliance
While accountants deal with statutory filings and tax, a fractional FD focuses on financial strategy: how to grow profitably, enhance margins, manage cash, and prepare for investment or expansion.
Regional understanding
We work across Yorkshire and the North East, so we have a deep understanding of local business challenges. We know the funding landscape, cost pressures, and opportunities in the regional market.
A partner for growth
Instead of operating at arm’s length, a good fractional FD becomes part of your leadership team – attending board meetings, challenging assumptions, and helping you shape your next stage of growth.
When is the right time to hire a full-time FD?
Eventually, many SMEs do reach the stage when a full-time FD makes sense. But that usually happens when:
Turnover tops £10–15 million.
You have several departments or subsidiaries.
The volume of strategic finance work warrants a dedicated senior role.
Until then, a fractional finance director provides everything you need, but at a fraction of the cost.
How to tell if a fractional FD is right for your business
If you find yourself asking questions like these, now is the time to begin considering fractional finance support:
“I want to step back from day-to-day financial firefighting.
“I need forecasts to plan hiring, investment, or funding.
“I feel in control of cash today but not confident about six months from now.”
“Our accountant is great, but we need more strategic input.”
If that sounds familiar, a fractional FD can help bridge the gap, turning your numbers into a clear growth roadmap.
Getting Started
If you’re considering your next move, here’s a practical way to do so:
Assess your needs: Are your challenges operational (bookkeeping) or strategic (growth, forecasting, funding)?
If fractional support feels right, explore options: Seek out seasoned experts who have successfully supported growing SMEs.
Measure the impact: Track how forecasting, strategy and confidence improve after 3–6 months.
Grow smart, not heavy
Your SME might not need a full-time Finance Director yet, but it does need strategic financial support that grows with you, not ahead of you.
With a fractional finance director, you get clarity, control, and confidence without the corporate price tag. It’s the smarter way to scale – access to top-tier financial insight, flexibility to match your pace, and tailored guidance from someone who understands what it’s like to grow a business.
When the time is right, you’ll know, because your strategy, systems, and success will make the case for a full-time FD. Until then, think fractional, and let strategic finance become your growth engine.
Schedule a free consultation and discover how strategic finance can transform your business.