When Should an SME Hire a Fractional CFO or FD?

Introduction: Spotting the Tipping Point

As an SME owner, you probably wear a dozen hats at once. Sales, operations, staff, compliance and somehow, finance gets added to the pile. For a while, it works. Then, suddenly, the numbers start to slip: cash feels tighter, profits don’t quite match sales, and your “finance meetings” are rushed chats with your accountant once a year.

That’s the point many business owners start asking: Do I need a Finance Director? Or could a fractional CFO be enough?

At Lock & Ledger, we see the same patterns across manufacturing, construction, retail, logistics and services — and knowing when to bring in fractional FD support can be the difference between firefighting and scaling with confidence.

Cashflow Keeps You Awake at Night

If you’re constantly wondering whether you can make payroll, or if client late payments cause a domino effect across your supply chain, that’s a red flag.

• Your accountant records what’s already happened.

• A fractional FD gives you rolling cashflow forecasts and fixes the processes causing gaps.

At Lock & Ledger, we’ve helped SMEs halve debtor days and unlock cash that was sitting idle, instantly easing stress for the owner.

Growth Outpaces Your Systems

It’s exciting when orders stack up or contracts land quickly. But often:

• Margins get squeezed because pricing wasn’t modelled properly.

• Stock or supply chain can’t keep pace.

• Reporting lags behind reality.

This is where a fractional FD steps in to make sure growth doesn’t equal chaos. We put in dashboards, Lean Six Sigma processes, and profit models so you know growth is sustainable.

The Numbers Don’t Tell You Enough

Do you get a monthly pack that feels like it’s written in code? Or worse, nothing until year-end? That’s common in SMEs.

Fractional FDs build reporting around your decisions:

• Should you hire?

• Is a new site affordable?

• Which product lines are draining margin?

Lock & Ledger specialises in turning raw accounts into insight you can act on.

Compliance and Risk Are Creeping Up

As turnover grows, so do compliance risks VAT, payroll, health & safety, ISO, ESG reporting. For many SMEs, this becomes overwhelming.

Fractional CFOs/FDs ensure systems are audit-ready and future-proof.

At Lock & Ledger, we combine finance and operations expertise so you’re covered on both fronts.

You’re Thinking About Exit or Investment

If you’re considering outside funding, a sale, or bringing in new partners, you’ll need strong financials and a clear growth plan. A fractional FD helps position your business for maximum value.

We’ve supported SMEs with exit strategies and investment readiness - ensuring their businesses looked attractive on paper and in practice.

Why Timing Matters

Waiting too long usually costs more in lost profit, staff burnout, or poor decisions. Hiring too early can feel like wasted overhead. The sweet spot is when you’re large enough that finance takes up more than “one person’s job,” but not big enough to afford a full-time FD.

That’s where Lock & Ledger’s model fits.

The Lock & Ledger Difference

Most SMEs don’t need a £100k+ FD salary. They need trusted direction: someone who can spot issues early, improve controls, and free the owner to focus on growth.

At Lock & Ledger, we work part-time, but embedded aligning with your team, not just parachuting in.

Our retainers start from £1,950/month, meaning you get board-level expertise scaled to your budget.

Conclusion: Don’t Wait Until It Hurts

If your business is showing signs of strain — cashflow pressure, growth chaos, unclear reporting — it’s not a failure. It’s a signal that you’ve outgrown your old finance setup.

Hiring a fractional FD could be the best decision you make for long-term stability and growth.

Ready to explore if it’s time for you? Contact Lock & Ledger for a no-obligation chat and see how strategic finance can unlock your next stage of growth