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Fractional FD vs full-time: the real cost.

A full-time finance director is one of the biggest hires a founder-led company makes. Here’s what it really costs, and when part-time makes more sense.

When owners first think about senior finance help, they usually picture a full-time finance director. For a business turning over a few million pounds, that’s often more than it needs, and far more than it can comfortably afford.

What a full-time FD really costs

The salary is only the start. Based on roles advertised on Indeed, the average finance director salary is around £82,000, and it varies a lot by location and experience. On top of that you pay:

  • Employer’s National Insurance on the salary
  • Employer pension contributions
  • Recruitment fees, often a percentage of first-year salary
  • Bonus, benefits and equipment
  • Months of searching before anyone starts, and notice periods both ways
Once you add it up, a full-time finance director typically costs £95,000 or more a year before they’ve made a single decision.

What a fractional FD costs

A fractional finance director works with your business part-time for a fixed monthly fee. My packages start at £2,500 a month plus VAT for Finance Partner, £3,000 for Financial Controller and £3,500 for Finance Director. There’s no recruitment fee, and you can move up or down as the business changes.

When full-time makes sense

Full-time is the right answer when there’s a full-time job to do: a large finance team to lead, complex group structures, investors who expect a permanent board member, or daily decisions that need a senior finance voice in the room.

When part-time makes more sense

  • You need senior thinking, but not five days a week
  • You have a bookkeeper, but nobody senior owns the numbers
  • You’re growing and want the systems in place before you hire
  • You’re preparing for funding or a sale and need help for a defined period

The question to ask

Not “can we afford a finance director?” but “how much senior finance time does the business actually need right now?” For most founder-led companies £750k or more, the honest answer is a few days a month.

Hayley Ayres
Hayley Ayres BFP ACA

ICAEW chartered accountant and part-time finance director for founder-led UK companies.

This article is general information, not advice for your specific situation.

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