It’s a question we’re often asked. There’s clearly some crossover between what a Finance Director (FD) does and what a Financial Controller (FC) does, but what exactly is the difference you may be wondering. In smaller businesses especially, the lines can get blurred. But understanding the core differences between a FD and a FC is key to getting the right leadership structure in place for your finance function.
What’s the role of a Finance Director (FD)?
A Finance Director is ultimately responsible for the financial direction of the business. They will ensure that the business has sufficient financial resources to meet its obligations and they’ll provide advice to the board on how to shape and deliver the business plan.
This role is outward-facing as much as it is internal. FDs will typically manage key external relationships, such as with banks, investors, auditors and other stakeholders.
Ultimately, they’re responsible for delivering long-term growth in shareholder value. Their job is to provide strategic financial input, assess risk, and look ahead – not just report on what’s already happened.
What’s the role of a Financial Controller (FC)?
The Financial Controller will of course support all of this activity, but their focus is on ensuring the right processes are in place to record the company’s transactions. They’ll report information, including monthly management accounts, budgets and forecasting activity, to enable leadership to run the business effectively. And FC’s also usually manage the group’s finance department, making sure the day-to-day financial operations run smoothly and accurately.
Think of the FC as the person who ensures the numbers are right and delivered on time – so the FD can use them to inform decisions.
How do the two roles work together?
While there’s some crossover, the FD and FC are very different in purpose.
The FD leads on strategy, risk, and commercial decision-making, while the FC ensures the business has the solid financial data and the infrastructure needed to support that.
In essence, the FD is tasked with delivery of the business plan, while the FC will provide the platform and information to help the FD and board do that.
When does a business need both?
As companies grow, complexity increases – and that’s where the split becomes essential.
An FC is often the first senior finance hire in a scaling business. But once strategic financial planning, external stakeholder management or major change (like private equity backing or an acquisition) come into play, an FD becomes a crucial addition.
In larger or more ambitious organisations, having both roles in place ensures that financial accuracy and strategic insight go hand in hand.
