For many SMEs, the decision to hire a Finance Director (FD) is a major milestone, one that signals growth, complexity, and the need for strategic financial leadership.
But recruiting the right FD goes far beyond finding someone who can manage cash flow or oversee reporting. It’s about securing a commercial partner who can help drive the business forward. With research by ACCA showing that over 65% of SME owners feel out of their depth when it comes to financial planning, it’s clear that hiring the right FD isn’t just desirable, it’s essential.
In the early stages of a business, financial oversight might fall to an outsourced accountant, a part-time controller, or even the business owner. But as revenues grow, investor expectations rise, and operations become more complex, having someone in-house who understands the nuances of the business and can deliver meaningful insight becomes critical.
A skilled FD doesn’t just track numbers, they interpret them, challenge assumptions, and shape strategy. In short, they move the business from reactive to proactive finance.
However, many SME leaders fall into the trap of hiring purely for technical expertise. Yes, your FD should be a qualified accountant, ideally ACA, ACCA or CIMA, with strong experience in financial reporting, compliance, and forecasting. But focusing solely on credentials can lead to a mis-hire. In fact, a recent survey by Robert Half found that 89% of CFOs believe soft skills are increasingly important in finance leadership, particularly communication, adaptability, and commercial awareness.
So what should SMEs be looking for?
First, commercial acumen. Your FD should understand not just how the business makes money, but how it can make more of it. They should be capable of analysing customer behaviour, pricing models, margin trends, and operational efficiency. They must be confident challenging the board or MD, and equally comfortable rolling up their sleeves to manage day-to-day financial operations. In SMEs, an FD often has to be both strategic and hands-on. Flexibility is key.
Second, sector experience matters, but don’t be too rigid. If you’re in retail or manufacturing, having someone who knows your industry can be invaluable. But transferable skills are just as important. Someone who’s worked in fast-growth environments, managed investor relations, or helped a business through acquisition or restructuring will bring insights that go far beyond your balance sheet.
Third, cultural fit. This is often overlooked, yet it can make or break the hire. In SMEs, the FD often becomes a close advisor to the owner or MD. Trust and alignment of values are critical.
- Will they thrive in a fast-paced, often ambiguous environment?
- Do they show initiative, or do they wait for instruction?
- Are they able to influence non-finance colleagues and explain complex issues in plain language?
The recruitment process should reflect these priorities. A great interview isn’t enough. Use psychometric testing, real-world case studies, or strategic planning scenarios to assess candidates. Speak to references not just about performance but about leadership style and team impact. And consider the long-term vision. This person may evolve into your CFO or even COO as the business scales.
Hiring a Finance Director is not just about plugging a gap. It’s about investing in the future of your business. The right FD will pay for themselves many times over, not just in financial efficiency, but in the strategic clarity they bring. For SME owners who are serious about growth, getting this hire right can be one of the most pivotal decisions they ever make.
Why Use a Specialist Recruiter Like Talent Finance?
Finding a Finance Director with the right blend of technical expertise, commercial acumen, and cultural fit is no easy task, especially when you’re running a business. That’s where a trusted specialist recruiter like Talent Finance adds real value.
At Talent Finance, we don’t just fill roles, we partner with you to understand your goals, your challenges, and the nuances of your business. With deep sector knowledge and a curated network of qualified finance professionals, we’re able to connect you with candidates who not only meet the brief on paper but bring the mindset, agility, and leadership your business needs to scale.
We act as an extension of your business, guiding you through every stage of the hiring process from defining the role to onboarding the successful candidate. Our track record in placing Finance Directors in high-growth SMEs means we know what works and more importantly, what doesn’t.
If you’re considering your first FD hire or looking to upgrade your existing finance leadership, speak to us. The right person could transform your business. Reach out today on info@talentfinance.com
