We understand the demands facing businesses locally and nationally. This guide explains what a finance director does, how much a finance director earns, how to become finance director, and decisions around hiring in-house vs outsourced/virtual.
A Finance Director (FD) is a senior executive charged with guiding an organisation’s financial strategy and safeguarding its financial health. They do more than ensure compliance and accurate reporting; they partner with leadership to shape business direction.
FDs provide financial advice and guidance throughout the company, develop internal financial controls, oversee annual budgets, ensure statutory obligations are met and help deliver business strategy.
Daily activities may include overseeing cash flow, approving expenditures, monitoring financial performance indicators, and resolving issues that threaten financial stability.
Monthly responsibilities typically involve preparing management accounts, analysing variances, delivering reports to senior management or boards, and adjusting forecasts. Yearly tasks include leading budgeting cycles, managing annual accounts and audits, statutory compliance, and strategic planning.
An FD contributes to business growth by enabling informed decision-making. Forecasts and scenario analysis allow businesses to anticipate cash flow issues or investment needs.
An FD helps to prioritise investment opportunities, manage risk, and improve operational efficiency. For instance, cost structures, pricing policies, investment returns and cash reserves are all under their oversight. By ensuring that strategic plans align with financial capability, the FD ensures growth is sustainable rather than risky.
For businesses in Peterborough and beyond, local market conditions, supply chain, and client base all impact financial strategy. A Finance Director with regional awareness but national reach can offer tailored insight: for example, combining knowledge of regional costs, local tax or incentive programmes, with wider best practice and risk tools.
To reach the FD level one usually needs:
Finance Director salaries in the UK vary significantly depending on location, company size, sector and breadth of responsibilities.
In London for example, typical salaries are in the range £90,000-£180,000 per annum.
In other regions, especially in SME settings, salaries can be lower. The average salary UK-wide is around £120,634, with many FDs earning between £90,000 and £165,000, depending on responsibilities.
Factors influencing salary include whether the role handles multiple entities, international operations, high complexity (mergers, risk, audit), bonus or equity components, whether full-time vs part-time or outsourced.
A typical path involves:
Deciding whether to hire a full-time FD or use a virtual/outsourced service depends on cost, workload, business phase, and strategic importance of finance in the business.
You might consider a full-time FD when the business has grown large enough that financial complexity is constant: frequent investment or borrowing, audits, multiple reporting lines, possibly operating across geographies or jurisdictions.
Outsourcing or using a Virtual CFO/FD makes sense when you want senior level financial leadership without the full cost of a permanent salary, benefits, overhead. It is especially useful for SMEs, businesses in Peterborough and elsewhere that have peaks of need or need strategic input but not continuously full-time.
A Finance Director oversees financial reporting, budgeting, forecasting. They monitor cash flow and liquidity, manage financial risks, ensure statutory compliance and audit readiness. They oversee internal financial controls, policies and procedures. They provide insight to leadership on decisions involving investment, capital allocation, cost control, growth strategies and may negotiate with banks, external investors, auditors.
Virtue Accountants is based in Peterborough but serves clients across the UK and remotely. We offer Virtual CFO/FD services to businesses throughout the UK and remotely.
Our clients benefit from access to senior financial leadership without committing to a full-time hire. We deliver management accounts, financial forecasting, cash-flow management, strategic planning, risk oversight and decision support.
When to Bring in a Finance Director: Key Indicators
You should consider bringing in FD-level expertise when:
A Finance Director does far more than “look after the numbers”. They are strategic partners, guiding companies toward growth while maintaining financial strength.
Understanding what a finance director does, how much they earn, what qualifications are needed, and when to hire one helps businesses make better decisions.
Whether you engage a full-time FD or use our Virtual CFO/FD services from Peterborough, the goal is the same: to ensure your business is financially robust and well-positioned for growth.
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