What good looks like
When a finance director may help
A finance director is one way to get senior finance help, not the only one. For some businesses, better monthly figures from their accountant, or a management accountant, will do the job.
The short answer
We have not found any legal requirement or official standard that says when a business should involve a finance director. Signs that one may help include planning to borrow or raise money, fast growth with tight cash, big decisions made without a clear view of the numbers, or plans to buy or sell a business. If the problem is that figures are missing, late or unclear, better reporting or a management accountant may be enough.
Match the sign to the help
The table pairs situations with the lighter option that may be enough, and the point at which a finance director may add something more. It is our judgement, for our reviewer to check.
| What is happening | What may be enough | When a finance director may help |
|---|---|---|
| You get no figures between annual accounts | Monthly or quarterly management accounts from your accountant or a bookkeeper | Rarely the first step for this alone |
| Figures arrive, but you are not sure what they mean | A short commentary with the figures, or a regular call with your accountant | If you also need help deciding what to do about them |
| Cash is regularly tight | A cash flow forecast, updated regularly | If the business is growing fast or needs new borrowing to cope |
| A lender wants regular figures | Management accounts on time, in the form the lender asks for | If the lender also wants forecasts, covenant reporting or a funding case |
| You are deciding whether you can afford new staff or equipment | A forecast run with and without the cost, from your accountant or a management accountant | If decisions like this come up often, or are large compared with the business |
| You are planning to raise investment, buy a business or sell | Your accountant, plus specialist advisers for the transaction | Worth considering, to prepare the figures and lead the finance side |
| Nobody owns the finance function day to day | A financial controller or an outsourced finance team | If the owner also wants someone senior to plan with |
Signs a business may benefit from finance director support
- It is borrowing, or raising money from investors, and needs forecasts and a clear funding case.
- It is growing quickly and the owner cannot see far enough ahead on cash.
- The owner makes big decisions, such as hiring or large purchases, without a forecast to test them.
- It has outgrown yearly accounts alone but is too small for a full-time finance director.
- It is preparing to buy another business, or to be sold.
None of these on its own means a business must have a finance director. A part-time finance director, working a set number of days a month, is one option. See Part-time finance director.
When better reporting may be enough
Some of the problems that lead owners to think about a finance director come from missing or late figures. The ICAEW says "annual accounts are not enough to control a business" and that businesses need to "plan ahead and compare forecast figures with actual results".1 Regular management accounts, a cash forecast and a short commentary can cover a lot of that. Your current accountant may already offer them. See Management accounts: what good looks like and Cash flow forecasts.
What it costs
We have not found a reliable published source for what finance directors, part-time or full-time, charge in the UK, so we do not give a figure. Cost depends on the number of days and how complex the business is. Ask for a day rate and an estimate of days before agreeing anything.
Questions to ask before deciding
- Could our accountant provide the figures and forecasts we are missing?
- What would a finance director do in the first three months that we cannot do now?
- How many days a month would they need, and why?
- How would they work with our accountant?
About this standard
This page describes signs, not rules. It is drafted from published guidance and our own judgement, and a paid practising accountant will review it before release. How our standards work.
Sources
- ICAEW, "Managing your business" (Find a Chartered Accountant, help with your business). icaew.com. Checked 12 October 2026.