A CFO, or chief financial officer, is the most senior finance executive in a business. The CFO owns financial strategy, funding, capital allocation, risk and investor relationships, and works alongside the CEO to turn the business plan into numbers the board, lenders and shareholders can rely on.
What the role covers
The CFO looks forward rather than back. Day-to-day accounting, payroll and compliance usually sit with a financial controller or finance director, while the CFO focuses on where cash should go, how the business is funded and what it is worth.
Typical responsibilities include the budget and forecast, fundraising and banking relationships, pricing and margin strategy, mergers and acquisitions, and the finance input to board and investor reporting.
How it works in a UK business
In UK SMEs the title is used loosely, and many finance leaders called CFO do the work of a finance director. The distinction becomes real in scale-ups and private equity-backed businesses, where investors expect a CFO who can run a fundraise, model scenarios and lead due diligence.
A CFO is often, but not always, a statutory director registered at Companies House.
The fractional option
Many growing businesses need CFO-level thinking for a few days a month rather than a full-time salary. A fractional CFO delivers the strategic part of the role on a part-time basis. Leadership Services provides fractional CFOs from its bench of senior directors, from £1,795 per month.
Frequently asked questions
What is the difference between a CFO and a finance director?
A finance director usually runs the finance function, making sure the numbers are accurate, timely and compliant. A CFO is more strategic and external facing, owning funding, investor relations, M&A and long-term financial strategy. In smaller UK companies one person often does both, and the title chosen reflects the company's ambitions and investors as much as the work.
When does a business need a CFO?
Common triggers are raising equity or significant debt, preparing for a sale, taking private equity investment, or growing to the point where the board needs scenario planning rather than just monthly accounts. Before that point, a finance director or a fractional CFO is often enough.
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Last updated: 5 November 2026