What does a Part time FD do?
What does a part time FD do?
Short answer: A part time Finance Director provides senior financial leadership a few days a month. The role covers board reporting, cashflow management, budgeting and forecasting, commercial decision support, funding and bank relationships, and coaching the in house finance team. A part time FD gives an SME access to the same calibre of finance leadership as a larger business, at a fraction of the cost of a full time hire.
What a part time FD is
A part time Finance Director, sometimes called a fractional FD or portfolio FD, is a senior finance professional who works with several businesses at once, giving each one a defined amount of time each month. They usually bring 15 to 25 years of finance experience, have held full time FD or CFO roles in the past, and know how to translate financial information into commercial decisions.
The role sits above a Financial Controller or bookkeeper. The FC or bookkeeper produces the numbers. The FD works out what they mean, what they imply for the business, and what the Managing Director should do about it.
Core responsibilities of a part time FD
Not every part time FD engagement covers everything below. Scope is agreed at the start and refined as the business grows. A typical engagement includes most of these.
1. Board reporting and management information
The FD is responsible for the monthly board pack. That means management accounts you can trust, a narrative that explains performance, a cashflow view that matches reality, and the commentary that turns numbers into decisions. A good FD does not hand over a pack. They walk the MD and the board through it and answer the hard questions.
2. Cashflow management
Running or sense checking the 13 week rolling cashflow, flagging pinches, and making sure the business has the funding facilities it needs. Cash is the single area where a part time FD earns their fee many times over because it is where the damage of poor visibility lands fastest.
3. Budgeting and forecasting
Building the annual budget, managing the reforecast cycle, and making sure the budget is a live tool rather than a document that gets written in January and ignored. A part time FD will also build scenario analysis for significant decisions, such as a new hire, a new product line, or a change in pricing.
4. Commercial decision support
Working alongside the Managing Director on pricing, customer profitability, supplier negotiations, make or buy decisions, and investment cases. This is where senior finance experience makes the biggest difference because the FD has usually seen the decision play out in other businesses and can bring perspective.
5. Funding and bank relationships
Preparing the business for bank lending, investment, or acquisition finance. That covers the financial side of a lending proposal, the model, the ratios, and the conversations with banks and investors. A part time FD who is used to dealing with lenders will usually secure better terms than an MD doing it for the first time.
6. Finance team leadership and coaching
Setting direction for the in house bookkeeper or Financial Controller, reviewing their work, raising the bar on output, and coaching them. In smaller businesses the part time FD effectively runs the finance function. In larger ones they mentor the FC.
7. Governance and compliance
Making sure statutory filings, audit preparation, and tax planning are on track. The detail usually sits with an accountant or FC, but the FD owns the oversight.
Part time FD versus FC versus bookkeeper
The three roles are often confused. They are genuinely different.
| Role | What they do | Typical focus | Day rate or equivalent |
|---|---|---|---|
| Bookkeeper | Records transactions, reconciles bank, processes invoices, files VAT | Accuracy of the underlying data | £25 to £50 an hour |
| Financial Controller | Produces management accounts, runs month end, manages the bookkeeper, owns the numbers | Reporting and control | £55,000 to £85,000 full time equivalent |
| Part time FD | Strategic finance, board reporting, cashflow, funding, commercial decisions | Decisions and strategy | £800 to £1,500 a day, typically two to four days a month |
In a well run SME, all three roles exist. In smaller businesses the FC role is often filled by the FD alongside an outsourced bookkeeper. The exact shape depends on size and complexity.
When to bring a part time FD in
There are four moments when most SMEs realise they need one.
- Decisions are being made on gut feel, because the numbers arrive too late or are not trusted.
- Growth has stalled or become unpredictable, and the Managing Director cannot see the commercial reason in the data.
- A major event is coming up: a bank refinance, an investor conversation, a significant new contract, or preparation for sale.
- The in house team needs leadership, because the bookkeeper or FC has hit the ceiling of what they can do alone.
If any of these feel familiar, a part time FD is usually the right next step. You do not need a full time hire to solve any of them.
How a part time FD works in practice
A typical engagement looks like this.
- First four weeks: the FD gets under the bonnet. They review the last 12 months of accounts, meet the team, understand the business model, and produce a short report on what they see. This stage is sometimes called a finance function review.
- Month two onwards: a settled monthly rhythm. Review month end output, prepare the board pack, chair the finance meeting with the MD, update the cashflow, and work on whatever strategic priorities have been agreed.
- Ad hoc: phone calls, emails, and short meetings between board meetings as decisions come up. A good part time FD is available, within reason, not just on contracted days.
Most engagements run two to four days a month after the initial stage. The exact number is set by what the business needs. Some clients step up to five or six days a month during a specific project, then back down.
Typical cost and commitment
Part time FDs in the UK typically charge between £800 and £1,500 a day depending on experience and sector. A typical monthly commitment of two to three days lands between £2,000 and £4,500 a month. A typical engagement runs for 12 months initially with a rolling arrangement after that, though shorter project based engagements are common for specific events like a funding round.
A full time FD in the same SME market would cost £100,000 to £150,000 a year plus benefits, pension, and employer NI. A part time FD gives you the same seniority of thinking at a fraction of the cost because you are buying output, not presence.
What to look for in a part time FD
Four signals worth weighing.
- They have done the job full time, in businesses of a similar size and stage to yours. A part time FD whose last full time role was in a FTSE 100 business may not know how to get things done in a £5m SME.
- They can talk about commercial decisions, not just reports. The value is in the judgement, not the template.
- They are comfortable working alongside an outsourced finance function or in house team. The role is collaborative by nature.
- They give you a named individual, not a rotating cast. Continuity matters because trust is earned over months, not weeks.
How AI Finance Partners help
We provide part time FD support to SMEs across the South East, usually alongside a full outsourced finance function so the numbers and the thinking come from the same place. You get senior finance leadership at the board table and a team behind it that keeps the engine running between meetings.
Frequently asked questions
What is the difference between a part time FD and a fractional FD? They are the same thing. Part time FD is the older UK term. Fractional FD is more common in newer businesses, particularly in tech. The work is identical.
How is a part time FD different from an outsourced finance function? An outsourced finance function runs the day to day: bookkeeping, month end, reporting, cashflow. A part time FD sits above that, providing strategic finance leadership at board level. Most SMEs benefit from both. They do different jobs.
Can a part time FD help me raise money? Yes, and this is one of the most common reasons businesses bring one in. A part time FD can prepare the financial model, structure the lending or investment proposition, handle the bank or investor meetings, and manage diligence.
How many days a month do I need? Most SMEs start at two days a month and adjust from there. Ramp up for specific projects. The number matters less than the rhythm of having senior finance input at every board meeting and every major decision.
What should a part time FD cost? For a UK SME in 2026, expect £2,000 to £4,500 a month for a typical two to three day commitment. Project based work or interim engagements can cost more because intensity is higher.
Is a part time FD the same as a finance consultant? No. A consultant typically delivers a defined project and leaves. A part time FD has an ongoing role in the business, sits on the leadership team, and is accountable for outcomes over time.
