Insights

For many SME owners, financial complexity can increase faster than internal capability. As a result, the person who knows the business best often carries responsibility for financial decisions they were never meant to own alone. Many SME owners report rising costs and tighter margins, while lenders, investors and advisors often ask for clearer, faster financial answers. Advisory bodies and industry research often highlight financial visibility and cash control as persistent pressure points for growing SMEs. At the same time, hiring a full-time Finance Director often feels premature or unjustifiable.

That tension explains why more SMEs now choose a part time finance director. They do so to improve decision-making and support sustainable growth, rather than as a stopgap or only a reaction to crisis.

The real question is when this shift makes sense for a business, and which problem it is meant to address.

What gap are SMEs trying to close with a part-time finance director?

Many SMEs do not struggle because their accounts are inaccurate. The frustration comes from knowing the numbers are technically right but still feeling unsure when decisions need to be made. The information they receive does not always support the choices they need to make.

Common situations include financial reports that arrive weeks after month‑end, alongside numbers that explain what happened rather than what happens next. This often leaves owners making commercial decisions without clear cash or margin visibility, while growth plans rely on assumptions that have not been tested financially.

Bookkeepers and accountants play a critical role, but they do not typically provide senior-level judgement. The gap SMEs are trying to close is not administrative. It is strategic.

A part time finance director fills that gap without the commitment of a full-time hire. When delivered as embedded, senior leadership rather than remote advice, this support becomes part of the decision-making fabric of the business.

What is the real cost of not having senior financial oversight?

Many SMEs delay senior financial input because the cost feels avoidable, particularly when nothing seems to be going wrong on the surface. In practice, the cost of not having that oversight can be higher.

Without experienced financial leadership, businesses often encounter cash flow surprises instead of forecasts, alongside margin erosion that goes unnoticed until year end. Growth can begin to strain working capital, financial narratives weaken when dealing with banks or investors, and risks linked to exits or succession surface later than they should.

These issues do not usually appear overnight. They can remain unnoticed until a business begins planning for exit plans or longer-term ownership change. They build gradually, which is why they are easy to underestimate. A part time finance director can reduce this risk by introducing forward-looking control rather than retrospective explanation.

Want to sense-check your position before issues become harder to unwind?

A short conversation with an experienced Finance Director can help you step back, pressure-test your assumptions and decide whether part-time financial leadership is the right next move.

Why are SMEs choosing a part-time finance director now?

Practical considerations, rather than short-term trends, help explain the rise in part-time financial leadership. Owners are looking for clarity and support without committing to a permanent senior hire too early.

SMEs are choosing a part time finance director because it provides senior experience without full‑time overhead and flexibility to scale support as the business changes. It can deliver impact faster than developing internal capability from scratch, while bringing an external perspective that is less influenced by internal politics.

For many businesses, this model provides the right level of input at the right stage, particularly during periods of growth or heightened scrutiny linked to a wider business growth strategy. It allows owners to access experienced financial leadership in a way that feels practical and proportionate.

What a part-time finance director brings that cannot be replicated internally

A part time finance director adds value through context and perspective rather than day-to-day execution. That perspective comes from working across multiple businesses, seeing similar challenges play out in different ways, and understanding which decisions make the biggest difference.

Instead of focusing on tasks, the role centres on shaping priorities, pressure-testing decisions and helping owners weigh risk with clearer sight of consequences. This often changes how and when decisions are made, not just what decisions are taken.

Most internal teams, even experienced ones, lack the breadth of exposure needed to develop this level of commercial judgement quickly.

When is the right time to hire a part-time finance director?

Many SME owners delay senior financial input because nothing feels broken, even though finance often becomes the main source of concern before key meetings or decisions. In reality, there are signals that can indicate the timing is right.

These often include revenue growth without consistent profit outcomes and increasing reliance on short‑term funding. Owners may find themselves spending disproportionate time on finance, while banks, investors or advisors apply pressure for better reporting ahead of growth, acquisition, succession or exit plans.

When these signals appear, a part time finance director can put structure in place before problems become embedded.

Is it risky to wait until you are bigger to hire a finance director?

A common assumption is that senior financial leadership only becomes relevant at a certain size. In practice, delaying input can increase cost and complexity.

Unresolved problems often become harder to unwind over time and reduce optionality later. This can limit the pace or quality of growth when opportunities arise.

Engaging a part time finance director earlier allows businesses to build stronger financial foundations without committing to permanent overhead too soon. This often becomes the most practical first step toward introducing senior financial leadership with confidence.

How this decision supports long-term business value

Strong financial leadership underpins outcomes that matter to SME owners, including sustainable growth and clearer, more defensible business valuations. It also supports smoother exits or succession transitions and increases confidence with stakeholders.

A part time finance director supports these outcomes by aligning day‑to‑day decisions with long‑term value creation.

Making the decision with confidence

Choosing a part time finance director gives SME owners shared financial oversight and clearer visibility at the moments decisions matter most. It brings greater control, improved clarity and confidence in the direction the business is taking.

For SME owners who want better visibility, stronger decisions and fewer surprises, this model offers a practical route to senior financial leadership that fits the realities of growing a business.

If you are considering whether this approach is right for your business, a short exploratory conversation with an experienced part-time finance director can help clarify timing, scope and priorities without obligation.

Arrange a chat with one of our experienced Finance Directors to talk through your business challenges and explore how the right financial leadership could help you make better decisions, faster.

It’s a practical, no‑pressure way to test whether part‑time financial insight aligns with your goals and you’ll be talking with a seasoned leader, not a salesperson.