Finance Director vs CFO: What’s the difference?

If your company is growing, you may be wondering: Should we hire a CFO or a Finance Director? While both roles are critical to financial success, they serve different functions. Choosing the right one depends on your revenue, business complexity, and long-term goals.

This guide outlines the key differences between a CFO and a Finance Director, their responsibilities, and how to decide which one fits your company’s current stage.

What Is a Finance Director?

A Finance Director is a senior leader responsible for overseeing a company’s day-to-day financial operations. They ensure financial accuracy, maintain internal controls, manage accounting teams, and help departments stay within budget.

In many companies, the Finance Director reports to the CFO or CEO and focuses on maintaining financial health through internal policies, compliance, and reporting.

Common Finance Director Responsibilities

• Directing financial planning and short-term strategy

• Managing accounting and reporting processes

• Overseeing audits, taxes, and regulatory compliance

• Monitoring cash flow and departmental budgets

• Developing and enforcing internal controls

• Leading budgeting and forecasting efforts

• Training and managing accounting staff

What Is a CFO?

A Chief Financial Officer (CFO) is an executive team member who guides the company’s overall financial strategy. CFOs translate financial data into business decisions, helping CEOs shape long-term plans, secure funding, and drive growth.

CFOs play a key role in investor relations, M&A activity, financial risk management, and performance forecasting.

Common CFO Responsibilities

• Developing long-term financial strategies

• Leading capital planning, debt financing, and fundraising

• Collaborating with the CEO on revenue and profit goals

• Supporting mergers, acquisitions, or joint ventures

• Managing financial communications with banks, investors, and boards

• Overseeing enterprise-wide financial risk planning

• Identifying and pursuing growth opportunities

CFO vs Finance Director: Key Differences

Finance Directors ensure the numbers are accurate and the books are in order. CFOs use that information to drive decisions about where the company is headed.

Which Role Does Your Company Need?

The right hire depends on your business size, complexity, and growth plans. Use this revenue-based framework:

• Under $5 million – A Finance Director is typically sufficient

• $5 million to $250 million – A CFO is recommended, even on a fractional basis

• Above $250 million – Most companies benefit from having both a CFO and a Finance Director

If your CEO needs help with long-term planning, fundraising, or profitability strategy, you likely need a CFO. If your focus is financial operations, reporting, and compliance, a Finance Director may be the better fit.

How a Fractional CFO Can Help

Not every business needs a full-time CFO. A fractional CFO brings strategic financial guidance on a part-time or project basis, helping you manage growth, improve performance, and prepare for major financial milestones without the cost of a full-time hire.

Learn More About Strategic Financial Leadership

At New Life CFO, we help growing companies find the right financial leadership for every stage. Whether you need a part-time CFO or help building your finance team, we can support your next step.

Explore more resources:

• How much does a CFO cost?

• Learn more about fractional CFO services

• The benefits of a virtual CFO