Most owner-managed businesses hit the same wall. Sales are up, the accounts are filed on time, and yet nobody can say how much cash you will have in three months. Finance firms such as Finnovis fill that gap with senior finance leadership on a part-time basis. You get a finance director’s judgement without a full-time salary.
So, what does an outsourced finance director actually do? In short, they own your financial planning: cash flow forecasts, budgets, management reporting, funding conversations, and board support. This guide covers the day-to-day duties, how the role differs from an accountant or outsourced CFO, UK costs, and how to choose a provider.
The Department for Business and Trade counts about 5.7 million private sector businesses in the UK, up 3.5% on the year, according to its Business population estimates for the UK 2025. Almost all are SMEs, and few can justify a full-time FD. That gap explains the rise of part-time senior finance support.
Why growing UK businesses outsource senior finance
Accountants look backwards. They file accounts, calculate tax, and keep you compliant with Companies House and HMRC. A finance director looks forward. Where will cash sit in 90 days, which customers drive profit, and can you afford the next hire?
Bookkeepers and accountants rarely cover that ground, so owners fall into the gap. They make big calls from bank balances and gut feel. An outsourced model fills it for a fraction of a full-time salary.
Why outsource rather than hire? Three triggers come up often: fast growth, a funding round or sale, and a finance team that needs leadership. The 15% employer National Insurance rate in force since April 2025 also pushes the cost of a permanent hire higher.
Core duties, from cash flow forecasting to board packs
Titles vary, but the work follows a pattern. Most owners who ask what does an outsourced finance director actually do want a clear list, so here is one:
- Cash flow forecasting, often on a 13-week rolling basis
- Budgets and annual plans tied to your sales targets
- Management accounts review and KPI dashboards
- Pricing, margin, and cost analysis
- Funding, bank, and investor conversations
- Board packs and meeting support
Beyond the numbers, a good FD mentors your finance team, tightens controls, and joins due diligence when you buy or sell. The FD works alongside your accountant and bookkeeper, not instead of them. Statutory deadlines still sit with your accountant, such as filing private company accounts at Companies House within nine months of the year end. Directors’ legal duties under the Companies Act 2006 also stay with your board.
Terms overlap, which confuses buyers. A part-time finance director and a fractional finance director both describe senior time shared across clients. An outsourced CFO usually covers the whole finance function and costs more.
| Option | Typical UK cost | Focus | Best for |
| Accountant | Fixed fee by scope | Accounts, tax, compliance | Meeting filing deadlines |
| Outsourced finance director | £1,500 to £4,000 a month | Forecasts, reporting, planning | SMEs without a full-time FD |
| Outsourced CFO | £2,500 to £8,000 a month | Whole finance function, fundraising | Investor-backed scale-ups |
| Interim FD | £650 to £950 a day | Full-time cover for a set period | Gap cover, turnaround |
| Full-time FD | £90,000 to £140,000 a year | Daily finance leadership | Larger firms with a full workload |
How an engagement works step by step
A good engagement follows a clear order. Here is what happens once you sign:
- Scoping call and finance health check
- Review of your accounts, systems, and cash position
- Agreed scope, days per month, and fee
- A monthly reporting rhythm with KPI dashboards
- Budget and rolling cash flow forecast
- Regular board or owner meetings, with quarterly reviews
If you need investor-ready reporting or fundraising help, fractional CFO support for growing firms can sit alongside the FD role. Many businesses start with one or two days a month and scale up as needs grow.
Take a 12-person marketing agency in Manchester turning over £2.5 million. The owner’s first search was what does an outsourced finance director actually do, after a big client paid 90 days late. Within a month the FD built a 13-week cash forecast, flagged that one client made up 40% of income, and reset payment terms on new contracts.
What it costs in the UK
What will it cost? Many growing businesses spend £1,500 to £4,000 a month on an outsourced FD, according to Julian Hobbs (2026). Day rates usually run £600 to £1,100. A retainer for one day a week averages about £2,000 to £3,200, and two days a week runs £3,500 to £6,000.
Compare that with a permanent hire. Full-time FD salaries start at £90,000 to £140,000, and recruitment fees add 15% to 25% on top. The real first-year cost can pass £145,000. For agencies under £3 million in revenue, one UK adviser puts an outsourced FD at 20% to 40% of the all-in cost.
Several things move the price. Days per month, sector complexity, and location matter, with London and investor-backed work at the top end. Fundraising or M&A experience pushes day rates to £900 to £1,300. Clean data keeps the bill down, because a daily-rate FD wastes hours fixing messy ledgers, so tidy management accounts and reporting packs save money. Ask how a provider handles IR35 if your FD works as a contractor.
How to choose the right provider
Price is only half the decision. Use this checklist before you sign:
- A chartered qualification, such as ICAEW, ACCA, or CIMA
- Experience in your sector and revenue band
- A written scope with days, deliverables, and fee
- A named FD, not a rotating junior team
- Clear notice terms and exit rights
- References from UK businesses of a similar size
A specialist provider like Finnovis typically works to a defined scope and monthly fee. A general accountancy practice may not offer senior finance leadership as a standalone service. That difference shows up in how fast you get forecasts and how often the FD joins your meetings.
When owners ask what does an outsourced finance director actually do, a chartered accountant working as an FD in London gives one tip: judge the role by the decisions it improves, not the reports it produces. Reports without decisions are just paperwork.
Conclusion
What does an outsourced finance director actually do? They turn raw numbers into forecasts, budgets, and decisions you can act on, without the cost of a full-time hire. Start by listing the questions you cannot answer today, such as cash in 90 days or margin by customer. Then match them to a part-time FD with the right sector experience. When you are ready to talk, reach out to Finnovis through the contact us page and ask for a scoped proposal. A clear scope keeps the fee predictable.
Frequently asked questions
What does an outsourced finance director actually do?
They lead your financial planning part-time. That means cash flow forecasts, budgets, KPI dashboards, management accounts review, funding support, and board reporting. They also mentor your finance team and tighten controls, working alongside your accountant rather than replacing them.
How much does an outsourced finance director cost in the UK?
Most growing businesses pay £1,500 to £4,000 a month, or £600 to £1,100 a day. A retainer for one day a week averages about £2,000 to £3,200. Fundraising or M&A specialists charge more. Always agree days, deliverables, and fees in writing.
Is an outsourced finance director the same as a fractional FD or outsourced CFO?
An outsourced FD and a fractional FD are close, since both share senior finance time across clients. An outsourced CFO usually covers the whole finance function and costs about £2,500 to £8,000 a month. Choose based on scope, not the label.
How many days a month does a business need, and for how long?
Most start with one to four days a month and scale up with growth. Many engagements run six to twelve months or longer on a rolling basis. Interim roles are shorter and cover a defined project or gap.
When should a business hire a part-time finance director?
Consider one when you plan to raise funds, sell the business, or grow fast. Another sign is that you cannot answer basic questions about cash, margin, or profit by customer. If your accountant files accounts but nobody plans ahead, a part-time FD fits.