Why a finance director matters
A finance director adds significant value to a growing organisation. We have found that business owners can spend too much time on high-level financial concerns, leaving them with less capacity to handle other pressing matters such as product development or client care. A finance director lifts that burden by ensuring all financial function aspects align with your growth plans.
It is not only about setting budgets; it involves establishing reporting procedures, overseeing compliance, exploring new sources of capital, and helping you see potential financial risks before they become issues. While an accountant might record transactions and prepare annual accounts, a finance director handles deeper planning, which can be the difference between a steady growth pattern and one that stagnates.
Setting the financial vision
Finance directors bring a vision for how to reach specific business targets. This might include advising on mergers and acquisitions or suggesting new investment opportunities. For instance, if you operate in the technology sector, a finance director can help you identify grants or innovation credits that reduce your tax bill. If you work in recruitment or a creative industry, they can spot ways to manage cashflow to cover hiring and operational expenses.
By taking a strategic view, finance directors show exactly how one financial decision will affect the bigger picture. This direction helps all decision-makers remain united when deciding on cost allocations, new hires, or external funding.
Oversight for the 2025/26 tax year
The 2025/26 tax year will keep many measures introduced in recent years, but there may be adjustments that affect your plans. The main rate of corporation tax is set at 25% for companies with profits above £250,000. For businesses with profits under £50,000, a lower rate may still be available, with a tapering rate in between. This system underscores the need for accurate forecasting: any rise in profit could mean a higher tax liability, so reviewing your structure is wise.
Dividend tax bands continue to apply if you withdraw money as dividends. Although personal allowances are projected to remain at £12,570, the finance director will consider whether salary-and-dividend combinations make sense for you and your fellow directors, especially if your business experiences a surge in revenue.
And it is not just corporation tax or personal allowances that matter. National Insurance contributions, business rates, and potential changes in reliefs for research and development can all influence your finances.
Practical insights for sourcing investment
For many businesses, raising funds is part of scaling. A finance director can advise on the best approach – whether that is equity finance, debt finance, or a blend of both. They will also help prepare financial forecasts that potential investors or lenders require.
According to Companies House data, tens of thousands of UK businesses seek external investment each year. When presenting your growth plan to banks or private investors, an accurate financial plan strengthens your position.
In our experience, well-prepared financial statements improve your chances of securing funds. Lenders want to see that you can manage regular repayments, while equity investors aim to understand your trajectory for growth. This process is far smoother when a finance director ensures accurate figures and compelling projections.
When to recruit or outsource
Not every business needs a full-time finance director. Outsourced models are increasingly common and can be cost-effective if your finances are not yet large or intricate. You benefit from the same expertise, but on a schedule and budget that makes sense for your stage of growth. Outsourced directors often support several businesses at once, bringing fresh perspectives from different sectors while customising their recommendations to your unique circumstances.
However, there may come a point where a permanent hire is justified. Daily oversight might be essential if your turnover is rising quickly or you have a complex funding structure. We have seen clients in the technology and creative industries who need immediate advice about compliance, overseas invoicing, or repeated investment rounds. A dedicated finance director can spot the opportunities or threats that arise when you scale your operations internationally or negotiate new partnerships.
Day-to-day responsibilities
A finance director can handle a wide range of responsibilities, including:
- Budgeting and forecasting: Setting clear budgets for different departments ensures that all resources contribute to the wider goal.
- Data analysis: Monitoring Key Performance Indicators and analysing trends to keep you aware of your financial performance.
- Compliance: Maintaining accurate records for accounts, VAT, payroll, and other obligations.
- Team management: Overseeing bookkeepers or finance managers, and ensuring everyone follows best practices.
- Liaising with external parties: Working with auditors, investors, banks, or the authorities so that your compliance and funding remain in good order.
These tasks free you to focus on your core specialism, whether that is tech innovation, recruitment strategy, or creative campaigns.
Working with us at Business Partners
We have helped many businesses set up or refine their financial structure. Our approach puts people at the centre, ensuring that staff and stakeholders understand how their roles support the company’s financial stability. If you want to explore whether a finance director (either outsourced or in-house) is the right step, feel free to discuss the options with Business Partners.
When you are ready to scale, clear and timely financial management can be a breath of fresh air. By coordinating budgets, forecasts, and new investments, a finance director helps you remain on track while you build client relationships and develop ideas.
Building a stable future
Successful scaling relies on balanced finances. Business owners often move rapidly from an entrepreneurial phase to a more structured environment. Managing that transition involves planning, monitoring, and ongoing adjustments. A finance director addresses these needs by providing the insights and leadership to keep your growth steady.
And remember: scaling is not solely about profit. It might also mean investing in new technologies, recruiting top talent, or choosing the right moment to open a new location. Each decision has financial implications that can become more significant over time. By including a finance director in your leadership team, you lay the groundwork for sustainable expansion.
Speak with us today to find out how a finance director can support your growth. Our team is ready to discuss the specific measures that will guide your business from steady progress to new heights.
