Many owners reach a point where the numbers feel bigger than the person keeping them. The books are up to date, yet big calls on hiring, pricing and borrowing still rest on gut feel. Firms such as Finnovis in Stockport step in at exactly this point, giving owners senior finance support without a full-time salary. So what does a virtual finance director do for a business, and when does it make sense to hire one?
This guide covers the role, the main service models, the monthly process and the costs. We keep it plain and practical, so you can decide whether it fits your business.
The role: finance leadership without the full-time hire
Most growing firms hit a gap between the bookkeeper and the boardroom. Your bookkeeper records what happened. Your accountant files accounts and tax returns. Nobody is looking ahead and telling you whether you can afford the next hire.
That forward-looking job belongs to a virtual finance director, often called a virtual FD. Know what a virtual finance director does for a business and the gap becomes clear. They build budgets and rolling forecasts, track cash, review monthly management accounts, and advise on pricing, funding and risk. In the UK the title matches the role of a chief financial officer in companies in many other countries.
Why not just hire one full time? Cost is the obvious answer. The Department for Business and Trade (2024) reports that small businesses make up over 99 per cent of UK private sector firms, and most cannot carry a finance director salary that often sits well above £90,000 before bonus and pension. A virtual FD gives you the same senior thinking for a fraction of that spend.
Virtual, fractional, part-time and outsourced models
The labels overlap, and providers use them in different ways. In practice, the difference comes down to how much time you buy and where the work happens.
A virtual FD works mostly remotely through video calls and shared accounting software, with a fixed monthly rhythm. A fractional finance director option usually means set days each week, sometimes on site. A part-time FD works fixed hours, much like an employee. An outsourced FD often covers the whole finance function, including your team and processes.
Each model has trade-offs. Remote setups cut travel and cost, but you lose some face-to-face time. On-site days build trust quickly, but they raise the price. Pick the model that matches your size, your complexity and how often you need a senior voice in the room.
| Model | Typical monthly cost (UK) | Time commitment | Best for | Main drawback |
| Virtual FD | £1,000–£3,500 | Fixed hours, remote | Small firms needing steady guidance | Less on-site presence |
| Fractional FD | £2,000–£5,000 | 1–3 days a week | Firms in growth or change | Higher cost |
| Part-time FD | £2,500–£6,000 | Set days or hours | Firms wanting an embedded lead | Less flexible |
| Outsourced FD | £1,500–£4,000 | Covers the function | Firms with no finance team | Needs clear scope |
| Full-time FD | £8,000+ employer cost | Full time | Larger, complex firms | Fixed cost |
Costs are typical market ranges and vary by provider and scope.
What happens each month, step by step
Curious how the work runs day to day? Here is what a virtual finance director does for a business across a normal month.
- They start with a review call to learn your goals, your numbers and your pain points.
- They connect to your accounting software, such as Xero, QuickBooks or Sage.
- They build a budget and a rolling cash flow forecast, often over 13 weeks.
- They review your management accounts and flag what has moved and why.
- They update your key figures, such as margin, debtor days and cash runway.
- They meet you to agree actions on pricing, costs, funding or hiring.
How the monthly process works at Finnovis follows a similar pattern, so you can see what a typical engagement looks like before you commit.
Take a realistic case. A Stockport trade supplier turns over £2.5 million and shows a profit, yet sits in its overdraft every month. The virtual FD finds that customers pay in 62 days while suppliers want payment in 30. A tighter credit policy and a 13-week forecast close most of the gap within a quarter.
A chartered accountant in Greater Manchester says the first month is mostly tidying data. Forecasts built on messy books mislead, so a good FD fixes the foundations before offering advice.
What it costs and what drives the price
Price depends on four things: your turnover, your complexity, the hours you need and how often you want reports. A single-site service firm with simple VAT costs far less to support than a manufacturer with stock, several entities and export sales. Projects such as a funding round or a sale add to the bill.
For most small and mid-sized firms, a virtual FD costs a few thousand pounds a month at most. A full-time FD costs several times that once you add employer’s National Insurance, pension and benefits. Ask for a fixed monthly fee with a clear scope, so there are no surprises.
Rules shape the work too. HMRC (2023) set the main corporation tax rate at 25 per cent for profits over £250,000, with a 19 per cent small profits rate below £50,000 and marginal relief between the two. Private limited companies must also file accounts at Companies House within nine months of their year end. A good FD plans for both well before the deadline.
A virtual finance director supports your accountant but does not replace statutory accounts or tax filing. That distinction affects the price, so ask each provider to state what is in and out of scope. Once you see that split, it is easier to judge what a virtual finance director does for a business and what that fee returns.
How to choose a finance partner in Stockport and beyond
Picking a provider feels hard when every website promises growth. Start with a handful of checks:
- Membership of ICAEW, ACCA or CIMA
- Experience in your sector
- Comfort with your accounting software
- Rolling monthly terms, not a long lock-in
- Professional indemnity insurance
- Two client references you can call
Then look at how focused the firm is. A provider that works only on finance director support for growing UK businesses, like Finnovis, repeats the same forecasting, reporting and funding work every week. A general accountancy practice often centres on year-end compliance. A freelance contractor may have limited cover during holidays, and larger firms can pass daily work to junior staff at higher fees.
Local knowledge adds value as well. Businesses in Stockport and across Greater Manchester, from manufacturing and logistics to professional services, share common cost and cash pressures. A provider that knows the area can often spot those patterns early.
Conclusion
So, what does a virtual finance director do for a business? They turn past figures into a forward plan, so you can hire, price and borrow with confidence. Start by writing down your biggest money question, then talk to a provider who can answer it. You can speak to Finnovis about a free consultation, or send a message through the contact us page. A short conversation costs nothing and shows whether this support fits your business.
Frequently asked questions
What does a virtual finance director do for a business?
A virtual FD gives you senior finance leadership on a part-time, remote basis. They build budgets and forecasts, review management accounts, track cash, advise on pricing and funding, and help you act on the numbers. You get a clear plan without a full-time salary.
How much does a virtual finance director cost in the UK?
Most firms pay between £1,000 and £3,500 a month, depending on turnover, complexity and hours. Fractional and part-time models cost more because they involve set days. Ask for a fixed fee and a written scope before you sign anything.
Is a virtual finance director cheaper than a full-time hire?
Yes, in most cases. A full-time FD often costs £90,000 or more in salary, plus National Insurance, pension and benefits. A virtual FD charges only for the hours you need, so smaller firms avoid a large fixed cost while still getting senior input.
What is the difference between a virtual FD and a virtual CFO?
They do much the same job. Finance director is the common UK title, and chief financial officer is the more common US one. Check the scope of work, not the job title, because duties vary by provider.
Do I need a virtual finance director if I already have an accountant?
Often yes. Accountants focus on past figures, such as year-end accounts and tax returns. A virtual FD looks forward with forecasts, cash planning and decision support. The two roles work well side by side.