What is a Finance Director?

A Finance Director (FD) is the most senior finance professional in most mid-market UK businesses. The FD is a board-level executive who provides strategic financial leadership, manages the investor and banking relationships, leads the finance function and acts as the CEO’s main commercial and financial partner. The FD is distinct from the Financial Controller, who is the most senior operational finance professional, and from the Chief Financial Officer, a title that usually describes the same kind of role at a larger, investor-backed or listed business.

This guide explains what a Finance Director does day to day, how the role compares with a CFO and a Financial Controller, the legal duties that come with a seat on the board, the qualifications and experience boards expect, what FDs typically earn across the UK, and the signs that a business is ready for its first FD. It also covers the part-time options: the interim FD and the fractional FD.

A note on who does what within our group. Finance Director searches are run by our sister firm FD Capital, which specialises in FD, CFO, interim FD and fractional FD appointments. Accountancy Capital recruits the qualified finance team beneath the FD: Financial Controllers, Finance Managers, FP&A professionals and financial and management accountants. Both firms belong to FD Capital Group, so a business that needs an FD and the team around them can brief once. Our Finance Director recruitment page explains how the joint search works.

What Does a Finance Director Do?

The Finance Director’s responsibilities span five main areas. Each is distinct from the operational finance work that sits with the Financial Controller or Finance Manager below them, and together they explain why the FD sits on the board rather than reporting into it. For a template of how these areas translate into a written role profile, see our Finance Director job description.

Strategic financial planning

The FD owns the long-range financial model: the three to five year plan that turns the business’s commercial strategy into a financial picture the board and investors can evaluate. The FD leads the annual budget and maintains the rolling forecast, giving the business the financial framework within which it makes decisions about resources, investment and growth.

Investor and banking relationships

The FD is the main financial contact for the business’s capital providers: the private equity fund, institutional investors, the bank or the shareholders. The FD prepares and presents the investor reporting pack, manages the bank relationship including covenant monitoring and compliance, and leads the financial side of fundraisings, refinancings and exit preparation. Lenders and investors judge the business partly by the quality of its FD, so this relationship often affects the cost and availability of capital.

Commercial financial challenge

The FD grounds commercial decisions in financial reality. That means setting out the financial consequences of major decisions before they are made (the margin impact of a pricing change, the cash flow implications of a significant investment, the model behind an acquisition) and being willing to challenge decisions where the analysis does not support them. This challenge function is the part of the role that most clearly separates the FD from the Financial Controller.

Finance function leadership

The FD builds, develops and leads the finance function. In most mid-market businesses the FD’s direct reports include a Financial Controller or Group Financial Controller, and may include an FP&A Manager, a Head of Tax or Finance Business Partners. The FD recruits this team, develops it and holds it accountable, and is responsible for making sure the function performs at the standard the business needs. Our guide on how to structure a finance team shows how that team typically grows with the business.

Financial governance

The FD owns the financial governance framework: the external audit relationship, the statutory accounts and Companies House filings, the internal control environment and any regulatory financial reporting that applies to the business. Where the business has an audit committee, the FD manages that relationship and attends its meetings.

Finance Director vs Financial Controller: The Key Differences

A useful one-line test: a Financial Controller makes sure the numbers are right, while a Finance Director decides what the numbers mean for the business and acts on them. Our explainer on what a Financial Controller is covers the FC role in full.

See From Financial Controller to Finance Director for the career path from FC to FD, and FC vs Finance Director: when to hire which for the hiring decision.

Finance Director vs CFO: When Each Title Is Right

The difference between a Finance Director and a Chief Financial Officer is mainly one of seniority, scale and ownership rather than a fundamental difference in what the job involves. As a general rule:

• Finance Director is the more common title at owner-managed and mid-market businesses of roughly £10m–£100m revenue, where the most senior finance professional reports directly to the CEO of the operating business.
• CFO is the more common title at PE-backed and listed businesses, and above about £50m revenue, where the finance leader also answers to an institutional investor or an audit committee.

At smaller owner-managed businesses the FD title is almost always the right one. In PE-backed businesses the CFO title is increasingly expected at any size, because the fund wants a finance leader who will own the equity story as well as the numbers. Between those positions, either title can work, depending on the governance structure, the board and the market the business competes in for finance talent. Our explainer on what a Chief Financial Officer does covers the CFO role, and Finance Director vs CFO: what’s the difference? sets out the full decision framework.

The Finance Director’s Statutory Duties

A Finance Director who is appointed to the board and registered at Companies House is a statutory director, with the same legal duties as every other director. Some businesses use the FD title for a senior finance manager who is not formally on the board; that person carries the job title but not the statutory duties, although they may still be treated as a de facto or shadow director if they act as one. Anyone accepting an FD role should establish which position they are in.

The general duties of directors are set out in sections 171 to 177 of the Companies Act 2006. In summary, a director must:

• s171 act in accordance with the company’s constitution and use powers only for their proper purpose;
• s172 act in the way they consider, in good faith, most likely to promote the success of the company for the benefit of its members as a whole, having regard to employees, suppliers, customers, the community and the long term;
• s173 exercise independent judgement;
• s174 exercise reasonable care, skill and diligence;
• s175 avoid conflicts of interest;
• s176 not accept benefits from third parties because of being a director; and
• s177 declare any interest in a proposed transaction or arrangement with the company.

Two of these weigh especially heavily on a Finance Director. The section 172 duty requires the board to show how it considered wider stakeholders, and the FD usually prepares the financial analysis that evidences those decisions. The section 174 standard of care is judged both objectively and against the director’s own knowledge and experience, so a qualified accountant sitting as FD is held to a higher standard on financial matters than a non-financial director.

Beyond the general duties, the FD typically leads the board’s compliance with the requirement to keep adequate accounting records under section 386, to prepare and file annual accounts on time, and to monitor solvency. If a company is approaching insolvency, directors’ duties shift towards creditors, and directors can be personally liable for wrongful trading under section 214 of the Insolvency Act 1986 if they continue trading when they knew, or ought to have concluded, that insolvent liquidation could not be avoided. The FD is usually the first director to see that risk. The government’s guidance on being a company director is a useful plain-English starting point.

What Qualifications Does a Finance Director Need?

Finance Directors are typically ACA, ACCA or CIMA qualified. ACA (from the ICAEW) is the most common qualification at PE-backed and listed businesses; ACCA is widely held across industry; and CIMA is well represented at owner-managed commercial businesses, where its management accounting focus suits the commercial side of the role.

There is no legal requirement for an FD in an unregulated business to hold a professional qualification. The expectation comes from the market rather than the law. But the technical depth the role needs (oversight of the statutory accounts, external audit management, accounting judgements) is most reliably built through a professional qualification, and a board that appoints an unqualified FD is taking a risk that other experience rarely justifies. In FCA-regulated firms the position is different again: a CFO or FD may hold a senior manager function and must be assessed as fit and proper. Our comparison of ACA vs ACCA vs CIMA explains how the three qualifications differ, and our guide to what boards look for in a Finance Director covers the selection criteria beyond qualification.

Finance Director Salary: What FDs Earn

Typical base salary ranges for permanent UK FD roles by business context and region, with typical interim day rates and fractional retainers.

PE-backed FD packages typically include target bonuses of around 20–35% of base salary and, at some funds, co-investment or management equity. Ranges vary with sector, complexity and bonus structure, so treat them as a starting point. The all-in cost of a permanent FD is well above base once employer National Insurance (15% from April 2025), pension and benefits are added; a London FD on a typical package often costs £120,000–£200,000 all-in. For a fuller breakdown see our Finance Director salary guide, and for multi-entity roles our Group Finance Director recruitment page.

When Does a Business Need a Finance Director?

The triggers that most consistently show a business needs a Finance Director, either by creating the role for the first time above an existing FC or by replacing a departing FD, are:

• PE investment or institutional fundraising. The investor expects FD-level leadership and investor reporting as a condition of investing.
• Scale. At around £15m–£25m revenue, financial management complexity typically exceeds what an FC can handle alongside investor and banking relationships.
• A bank refinancing or significant debt facility. The lender expects an FD-level professional as its main financial contact.
• A planned acquisition or exit. Transaction support is FD work, not FC work.
• A change in board composition. A new non-executive director expects a finance peer at FD level on the management team.

A common and costly mistake is hiring an FD when the real gap is operational, so the FD spends the week doing a Financial Controller’s job. If the numbers are unreliable, hire an FC first; if they are sound but you need board-level input part-time, consider a fractional FD; if investors, lenders or transactions need weekly FD attention, hire a full-time FD. Our step-by-step guide on how to hire a Finance Director takes this decision further.

Part-Time and Fractional Finance Directors

Not every business that needs Finance Director-level leadership needs a full-time FD. A fractional Finance Director provides board-level leadership (strategic planning, investor relationships, commercial challenge) on a one to two day per week retainer, typically costing £28k–£99k a year depending on days committed and region. The model suits businesses of roughly £8m–£30m revenue that have sound numbers and a capable FC, smaller PE-backed businesses, and founder-led businesses approaching their first institutional investment that need FD credibility without the full-time cost.

An interim Finance Director fills a different gap: a sudden departure, a PE acquisition, a turnaround or a fundraising that needs leadership immediately. Interim FD candidates can usually be put forward within days, at typical London day rates of £600–£1,100. Interim and fractional engagements are typically run through FD Capital, which specialises in interim and fractional FD placements. See interim vs fractional finance for how to choose between the two.

How to Find and Appoint a Finance Director

Finance Director appointments are rarely filled from job boards; the strongest candidates respond to specific, credible approaches. Within FD Capital Group, FD searches are run jointly with FD Capital, and Accountancy Capital recruits the finance team the new FD will rely on. For a permanent FD, a shortlist typically follows within one to two weeks of an agreed brief, and the overall timeline from brief to offer is typically eight to twelve weeks. Start dates are often several months away because FD notice periods are commonly two to three months, so an interim FD can provide continuity while the permanent search runs. For London roles, see London Finance Director recruitment; for PE-backed roles, our guide to what PE investors expect from a Finance Director.

The most useful thing a board can do is write a specific brief: what the FD owns on day one, the relationship that matters most and what success looks like at twelve months. Once appointed, the Finance Director’s first 100 days set the tone with the CEO and board.

The Finance Director’s Career Path

The typical FD career starts with ACA or ACCA qualification, often through a Big Four, Top 10 or regional practice training contract. After qualifying, most future FDs spend several years in Financial Accountant and Financial Controller roles in industry, building operational experience in month-end close, team leadership and audit management. The step from FC to FD means developing board-facing, investor-facing and strategic planning capabilities that the FC role does not always provide.

The time it takes varies. Qualified accountants who move into PE-backed businesses early, gain investor reporting exposure and take on transaction work can reach FD level within eight to twelve years of qualifying. Those who progress through owner-managed or public sector environments typically take longer, often twelve to sixteen years. Beyond FD, many move to CFO roles at larger or investor-backed businesses; our guide to the route to CFO covers that step.

Frequently Asked Questions

Is a Finance Director a legal director of the company?

Only if formally appointed to the board and registered at Companies House. A statutory FD takes on the duties in sections 171 to 177 of the Companies Act 2006. A senior finance employee with the FD title but no board appointment does not, unless they act as a director in practice.

How much does a Finance Director earn in the UK?

Typically £73,000–£130,000 base for a first FD above an FC at a £10m–£25m business depending on region, rising to £145,000–£205,000 for a London Group FD. PE-backed roles usually pay a premium at the same scale, plus bonus and sometimes equity.

How quickly can we appoint an FD?

A permanent shortlist typically follows within one to two weeks of an agreed brief, with eight to twelve weeks from brief to offer. Interim or fractional FD candidates can usually be put forward within days. Fees depend on whether the role is permanent, interim or fractional and are agreed in writing before a search starts.