Part-time FD, full-time FD or your accountant:
which does a £1–5m business need?
Most owner-managed companies between £1m and £5m turnover already have an accountant. The question is usually whether they also need a finance director, and if so, how much of one. Your accountant, a part-time FD and a full-time FD do three different jobs, and few businesses at this size need all three at once.
Three different jobs
Your accountant looks back. Year-end accounts, the Corporation Tax return, VAT and payroll filings, and the directors' personal tax. The work is about getting last year right and on time, and you may only speak a few times a year.
A part-time finance director looks forward. Monthly management accounts and KPIs, cash forecasts, budgets, board and lender reporting, and a second opinion on pricing, hiring and investment. Time is agreed up front, typically from a day a month to a day a week.
A full-time finance director does the forward-looking work every day and also runs a finance team. They sit on the leadership team, own the systems and controls, and are on hand for decisions that come up daily.
Decision points: when each one fits
Use these as a checklist. The more that apply, the further down the list you are.
Your accountant on its own is usually enough when:
- the business is stable and simple, with few staff and predictable cash
- you can see where you stand from the bank balance and your software
- nobody outside the business (a bank, investor or board) is asking for regular reporting
A part-time FD starts to make sense when:
- you find out how the year went when the year-end accounts arrive
- cash keeps surprising you, even in months that look profitable
- a lender, investor or co-shareholder wants monthly numbers, forecasts or covenant reporting
- you are planning to borrow, raise money, buy a business or prepare for a sale
- you want a monthly board pack but nobody has time to build it
- the owner is still the person reconciling the bank or chasing debtors
A full-time FD is worth considering when:
- you have a finance team of several people who need day-to-day management
- there are several companies, currencies or sites to consolidate
- decisions on cash, pricing or funding come up every week, not every month
- a funder or acquirer expects a full-time finance lead in the management team
What a part-time FD does that an accountant usually doesn't
The difference is direction of travel. An accountant tells you what happened last year and what tax is due. A part-time FD builds the monthly picture of where you are now, where cash is heading over the next quarter, and what happens if a big customer pays late or a new hire starts early. Many accountants offer some advisory work too, but the monthly rhythm of forecasting, reporting and challenge is a different service.
Common mistakes
- Hiring full-time too early. A senior hire with too little to do becomes an expensive bookkeeper.
- Hiring too late. If the bank is already asking difficult questions, the forecasting and reporting needed to answer them takes time to build.
- Expecting the accountant to fill the gap. Most accountants are set up for compliance deadlines, not monthly board meetings.
- Treating it as either/or. Your accountant keeps doing the compliance; a part-time FD sits alongside them.
How the three work together
At this size, the most common set-up is a bookkeeper or finance assistant for the day-to-day, an accountant for year-end and tax, and a part-time FD for the monthly reporting, forecasting and decisions. As the business grows, the FD days can increase, and if a full-time hire becomes the right answer, the reporting, forecasts and processes already in place make the role easier to define. For a closer look at who does what as turnover grows, read what a finance function looks like at £1m, £3m and £5m.
We cover what a fractional finance director does day to day, and how the cost compares with a full-time hire, on our fractional finance director page.
Talk it through
If you are not sure which of the three you need, we will tell you, including when the answer is “not yet”. Fintone works with owner-managed and investor-backed companies across Worksop, Sheffield, Rotherham and South Yorkshire. See how we work with companies or request a free call.
Last reviewed October 2026
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Fintone Ltd provides part-time finance director and finance support to growing companies, from a CIMA-regulated practice in Worksop.
Contact us
Telephone: 07595 534657
E-mail: hello@fintone.co.uk