A founder friendly guide for growing SMEs
Growing a business is exciting, but there comes a moment where the numbers feel different. They get bigger. Faster. Harder to keep on top of. This is usually when founders begin wondering how to stay on top of it all. They start thinking about whether it might be time to hire a Finance Director or bring in a Fractional FD.
Do you recognise any of our five signs that you need a finance director?
- You are starting to question the accuracy of your numbers
You get management accounts, but something feels off.
Figures change. Mistakes creep in. Reports do not give you what you need.
It is no one person’s fault. It is simply a sign that your business has outgrown its current setup.
A Finance Director, whether full time or fractional, can bring structure, control and clarity. They make sure the numbers are reliable so you can make decisions with confidence.
- Cash flow feels unpredictable even when sales are strong
This is one of the most common tipping points.
Money is flowing in to your business. Equally, cash is flowing out and you can’t quite see ahead clearly.
A Finance Director can help you understand what is driving the swings, improve how cash moves through the business and give you real visibility for the months ahead.
This is often the first and most noticeable improvement when senior finance support arrives. As the founder, you’ll suddenly feel like you are able to see your next steps more clearly.
- Your bookkeeper or finance manager is doing their best but is stretched
Most growing SMEs have a brilliant bookkeeper or a hard-working finance manager who is juggling more and more each month. They keep things moving but won’t have the time or skills to:
- Design reporting
- Build forecasts
- Create controls
- Challenge the numbers
- Lead financial strategy
When your finance person starts feeling overwhelmed, it is a clear signal your business needs someone senior with the necessary skills and experience to support them.
It doesn’t have to be a full time support. A Part-Time or Fractional FD can step in part-time, steady the ship, and train or recruit the finance manager or financial controller your business will eventually rely on.
- You are making bigger decisions without clear financial insight
Recruitment. Pricing. Taking on debt. Opening a second site. Launching a new product.
These decisions become riskier when you cannot see the financial impact clearly.
A Finance Director brings proper forecasting, scenario planning and financial insight into the conversation so you are not relying solely on instinct. It makes growth feel far less like guesswork and much less risky.
- You are preparing for a significant step in the business
These are the classic points where founders reach out for help:
- A funding round
- A new product launch
- A big contract win
- A new site
- Rapid growth
- Early thinking about exit
These situations need more than tidy accounts. They need someone who can prepare the numbers, tell the story behind them and guide you through the decisions that follow.
In other words, they are signs that your business now needs Finance Director level support.
Whether that is a full time FD or a Fractional FD depends on the pace and complexity of what is happening next, which we cover below.
So what is the difference between a full time Finance Director and a Fractional FD?
The truth is there is very little difference in the work they do.
- Both bring senior financial leadership.
- Both improve the quality of your numbers.
- Both help you make better decisions.
- Both strengthen your finance function from the inside.
The real difference is in capacity, complexity and how fast your business is changing.
A Fractional FD is ideal when the business is growing steadily and needs senior guidance, but not daily intervention. They work part-time, provide expertise, support your bookkeeper or finance manager and help build the internal finance team you’ll need as you grow.
A full time Finance Director is usually needed when the business is moving quickly.
Bigger contracts, fast growth and daily decisions all bring level of complexity where things shift too fast to wait for someone who is only in the business a few days a month.
Fractional FDs can flex up when needed.
If you have a short period of intense pressure, a Fractional FD can temporarily work three to five days a week to get you through it.
But it isn’t cost effective to use a Fractional FD at that level for long. If you consistently need three or more days a week, it is usually a sign your business now needs a full time FD or an interim FD on a fixed term contract. It matches the pace of the business more sensibly and keeps the cost under control.
So the question is not “Which one is better”
Instead, the question should be “What level of senior support genuinely matches the pace and complexity of our business right now”
A Fractional FD usually makes sense when:
- Growth is steady and manageable.
- You want clearer reporting or forecasting.
- Your bookkeeper or finance manager needs structure and oversight.
- You want senior input without the cost of a full time FD.
- Change is happening, but not at a pace that needs daily involvement.
- You want to build or develop an internal finance team.
- You are preparing for funding, expansion or a new project.
Most scaling SMEs fit this category.
A full-time Finance Director makes sense when:
- Growth is fast and decisions are made daily.
- You are winning larger or more complex contracts.
- Investors or lenders expect regular senior engagement.
- Your finance team is established and needs daily leadership.
- You run multiple entities or a more complex structure.
- Cash flow or margins move quickly and need close monitoring.
- Your business feels like it is changing every week rather than every quarter.
This is usually the natural next stage once your business has outgrown part-time support.
Next steps
If you are starting to recognise some of these signs that you might need a finance director, getting support might be the next step for your business. It does not mean you must hire a full time FD today. For many SMEs a Fractional FD is the ideal bridge.
If you would like a clearer view of what your business needs now, our Financial Health Check or free Finance Diagnostic Session can help.
We’re always happy to have a chat if you want to explore further.
Photo by Claudio Schwarz on Unsplash