Accountant vs Part-Time Finance Director: Understanding the Difference and How They Work Together

Business owners sometimes misunderstand the different roles of Practising Accountants and ‘part-time’ or ‘outsourced’ Finance Directors (FDs) / Chief Financial Officers (CFOs). Our blog provides a helpful explanation.

As an SME business owner, you understand that managing your finances goes beyond statutory & regulatory compliance, audit and taxation. It’s about ensuring your business is financially healthy, operationally efficient, and strategically positioned for growth. While external accountants play a crucial role in ensuring compliance, handling tax matters, and managing services like payroll and bookkeeping, a part-time FD or CFO offers a distinct and complementary contribution to your business.

Accountants are experts in historical financial accounting & reporting, ensuring that your business complies with company & tax laws, Government regulations and professional accounting standards. In contrast, a part-time FD brings hands-on commercial experience from within businesses — managing teams, making strategic decisions, and supporting the growth and operational success of the organisation. FDs are deeply embedded within the internal workings of the business, enabling them to provide not only financial leadership but also guidance on people, processes, and broader commercial strategy.

This article explores the different & distinct roles of accountants and part-time FDs / CFOs and how, together, they can bridge the gap between past financial performance and forward-looking, strategic business leadership.

The Role of an External Accountant: Compliance and Financial Stewardship

External accountants are essential for every business. They ensure that financial records and reporting are accurate, compliant with tax regulations & accounting standards, and legal time deadlines. Their focus is on historical reporting, summarising past performance, auditing, and preparing financial statements. They typically help with:

• Compliance: Ensuring the business meets tax laws and financial regulations whilst also advising on tax efficiency.
• Financial Statements: Preparing balance sheets, profit and loss accounts, and cash flow statements.

For some businesses, accountants also handle outsourced services such as bookkeeping and payroll, ensuring that day-to-day financial transactions are correctly recorded.

While accountants are indispensable for maintaining financial health, their role primarily revolves around compliance and reporting. Their expertise, though invaluable, doesn’t extend to the commercial side of business, where managing people, processes, and long-term strategy are key. They don't typically work within the business’s internal management team, and therefore, don't have the same depth of insight into the day-to-day trading and management challenges and strategic decisions that drive growth. 

1. Timely, Reliable Management Reports

While accountants focus on ensuring financial records are compliant with statutory requirements, generally on an annual reporting cycle, part-time FDs provide regular and frequent, real-time management reports that are designed to help business owners track actual performance against budget and make informed strategic decisions.  These reports focus on key performance indicators (KPIs) that are critical for profit improvement, business growth and operational efficiency on at least a monthly basis but often on a weekly and occasionally daily.  Eg. Short term cash flow forecasting is usually monitored on a weekly rolling basis, but when cash is especially under pressure this should increase to daily monitoring.  Unlike external accountants, who provide insights on past performance, FDs interpret current financial data and provide guidance on actions to take moving forward.

An FD doesn’t just present the numbers; they use their commercial experience to explain what the numbers mean for your business and its future. For example, an FD can analyse your profitability and cash flow, advising on areas to optimise operations, reduce costs, or capitalise on growth opportunities. They leverage their business acumen to pinpoint opportunities that accountants, by virtue of their external role, may not have the capacity or proximity to highlight.

2. Proactive Financial Strategy

FDs don’t just look back; they plan ahead. They help you develop forward-looking strategies that align your financial goals with your business plans and objectives. FDs use their deep understanding of the business — gained through years of internal experience to translate business plans into financial roadmaps for growth, identifying opportunities and risks.

Professional accountants have technical & specialist resources to ensure past activities comply with tax obligations and appropriate & effective tax planning is carried out to ensure effective policies are established. FDs proactively identify potential financial hurdles, such as cash flow issues or market fluctuations, and create strategies to mitigate these risks. They also help you assess business opportunities and plan for long-term objectives, from business expansion to new investments, ensuring your business remains financially robust while achieving its strategic goals and help you to financially justify new investments in plant & machinery, people, marketing, etc.

3. Influence in Strategic Business Decisions

One of the key differences between accountants and part-time FDs is the level of influence within the business. Accountants typically provide the numbers but do not play a key role in day-to-day business operations. In contrast, FDs are deeply embedded within the management team. They work closely with leadership, influencing decisions across the business, not just from a financial standpoint but from a strategic, commercial & operational one.

For example, if your business is considering hiring new staff or expanding into new markets, an FD can provide financial projections, evaluate the potential return on investment (ROI), and offer insights on the operational implications. Their ability to align financial strategy with business operations is a key benefit of having an FD in the business.

4. People, Processes, and Strategic Planning

While accountants focus on financial reporting, FDs are focused on strategic planning and financial control. They help the business set achievable financial targets, guide people management decisions, and support the improvement of internal processes. FDs bring a commercial perspective to decision-making, providing recommendations that go beyond the numbers and consider how to improve the wider business operations.

For example, an FD will help you build a sustainable business plan, ensuring it is grounded in robust financial forecasts and that the business is prepared for both expected and unforeseen changes. They provide clarity on where to invest and how to optimise business processes for maximum growth.

Key Differences Between Accountants and Part-Time FDs

To further clarify the distinct roles, here’s a summary table that highlights the key differences between external accountants and part-time FDs:

Why Accountants and Part-Time FDs Complement Each Other

Accountants and part-time FDs are not rivals or alternatives; they complement each other. Both are critical to the financial health and success of your business, but they serve different functions. Accountants provide the necessary compliance and historical data, while part-time FDs provide the strategic leadership and insights that help you build the future of your business.

At Secantor, we understand the value of both roles. We work closely with our clients’ accountants to integrate strategic financial advice with solid, compliant information. This collaboration ensures that your business’s financial strategy is grounded in strong foundations and focused on future growth.

The Bottom Line: Taking Your Business to the Next Level

If you’ve ever felt like your business is missing direction despite your accountant’s hard work, it’s likely because you’re missing the commercial leadership that a part-time FD provides. Accountants are invaluable for ensuring financial compliance and reporting, but part-time FDs bring the deeper commercial insights that help unlock business potential and drive growth.

By working with a part-time FD, you gain a partner who is deeply involved in your business’s operations — someone who not only supports your financial decisions but also works alongside you to drive strategic business growth, manage risk, and achieve long-term goals.

Want to know more? You’ll find some helpful additional information in our blog article, ‘Why every SME business needs a Finance Director’.