What is the Difference Between a Finance Director and a Chief Financial Officer?
When scaling companies come to us at Pearse Professionals, one of the most common questions we’re asked is:
“Do we need a Finance Director, or a Chief Financial Officer?”
At a glance, these titles might appear interchangeable - but the distinction is meaningful. The right hire depends on your business size, complexity, growth ambitions, and what you need from your finance leadership today and tomorrow.
In this guide, our Senior Consultant, Lachlan Wilkinson, breaks down the key differences between a Finance Director (FD) and a Chief Financial Officer (CFO), and when to hire each.
What is a Finance Director?
A Finance Director typically heads up the day-to-day financial operations of a business. They ensure accuracy, compliance, and control across all financial processes.
The key responsibilities of a Finance Director include:
Managing financial reporting, budgeting, and forecasting
Leading the finance team and overseeing internal controls
Ensuring statutory and regulatory compliance
Managing cashflow and working capital
Finance Directors are operationally focused and are often promoted internally through the finance ranks. They are crucial for ensuring the financial engine of a business runs smoothly.
Finance Directors are ideal for:
Businesses with steady growth
Mid-sized firms or divisions of larger companies
Companies looking for strong financial control and operational excellence
What is a Chief Financial Officer (CFO)?
A CFO is a more strategic finance leader, often operating at board level or alongside the CEO to shape the company’s growth trajectory and investment decisions. They provide financial insight that drives high level decision making.
Key responsibilities of a CFO include:
Leading financial strategy and long-term planning
Managing investor/stakeholder relations
Supporting M&A activity, fundraising, and exits
Building scalable finance infrastructure
Partnering with the CEO and executive team on business direction
CFO’s are forward thinking leaders who connect financial performance with business strategy, often with experience in high growth or private equity environments.
CFO’s are ideal for:
Fast scaling businesses
PE-backed or VC-backed companies
Companies planning for exit, M&A, or fundraising
Organisations seeking to build long term value
When should you hire a Finance Director or a CFO?
Hire a Finance Director if:
You need strong internal controls and better reporting
Your finance function lacks structure or leadership
You’re not ready for board-level financial strategy
Hire a CFO if:
You're scaling rapidly or planning for investment/exits
You need someone to shape commercial strategy
Your investors are pushing for more financial rigour at board level
At Pearse Professionals, we help businesses assess exactly where they are in their growth journey and whether a CFO or Finance Director is the best next hire.
Both Finance Directors and CFOs are vital, but they solve different problems. Understanding the distinction helps ensure you’re not over or under hiring for your current and future needs.
If you're unsure which role is right for your business, our specialist consultants are here to help.
Need to Hire a CFO or Finance Director?
Pearse Professionals work with venture capital and private equity firms to hire senior finance leaders.
Our deep network, sector insight, and commitment to start-up success makes us the go to recruitment agency for hiring interim and permanent CFO’s and Finance Directors in the UK and beyond.
Get in touch to explore this further:
Lachlan Wilkinson, Senior Consultant
lachlanwilkinson@pearseprofessionals.com
Pearse Professionals is a specialist Senior Portfolio Finance recruitment company based in London, providing expert recruitment services to top finance firms across the UK and internationally.
We connect talented professionals with leading employers to help build successful, diverse teams in the finance industry. Contact us today to find out how we can help you advance your career or fill your senior finance roles with the best talent in the market.
To discuss the hiring process with Pearse Professionals, contact us at info@pearseprofessionals.com.
Alternatively we can arrange to meet with you and map out a strategy to fulfil your hiring needs.