Financial Controller vs Finance Director: Which Does Your UK Business Need?

Growth brings complexity. As transactions pile up, what once worked, like basic bookkeeping or a part-time accountant - may no longer cut it. That’s when your finance function needs to evolve.

At this point, many UK businesses start comparing options: Financial Controller vs Finance Director (FD). Both are important, but they serve different purposes. Understanding the difference helps you make the right choice.

If you're unsure which one your company needs, or whether it’s time to invest in both, this guide breaks down the distinction, explores current UK trends shaping these roles with the latest data.

What’s the Difference Between a Financial Controller and a Finance Director?

While they work closely together, a Financial Controller and Finance Director have distinct focuses:

Financial Controller – Daily Financial Management

A Financial Controller is typically the head of day-to-day financial management and accounting. They “control” the finances, ensuring accurate financial reporting, robust internal controls, and compliance with accounting standards and regulations. Controllers oversee bookkeeping teams, manage cash flow, prepare statutory accounts, and implement policies to safeguard assets.

A controller is invaluable for tightening financial processes and ensuring nothing falls through the cracks in areas like revenue recognition, payroll, VAT, and audit preparation.

Finance Director – High-Level Strategy and Leadership

A Finance Director sets financial strategy and supports long-term growth. They manage budgeting, forecasting, and planning -working closely with the CEO and stakeholders like banks and investors.

While controllers focus on operations, FDs ensure the company’s finances align with wider business goals.

When Do You Need Each Role (or Both)?

Only 1 in 5 UK managers feel confident interpreting financial data. So how do you know which role your business needs?

• When to hire a Financial Controller: Bring in a controller when your day-to-day finance operations become too complex for a bookkeeper or part-time accountant – for example, if timely management accounts are lagging or compliance requirements (audits, investor reporting) are increasing. A controller will impose rigor on financial reporting, controls, and regulatory compliance.
• When to hire a Finance Director: Add a Finance Director when your business needs high-level financial strategy. This is often the case when planning significant growth, seeking external funding or investment, or facing complex financial decisions. An FD provides forward-looking guidance, scenario planning, and communicates the financial story to owners and investors.
• When to have both: Many growing companies eventually benefit from having both roles. An FD without a controller can get bogged down in transaction details, while a controller without an FD may lack strategic direction. However, in growing businesses a Financial Controller may initially take on light strategic tasks (e.g., cash flow forecasting, budget scenario modelling) until an FD is hired.

Trends in 2025 Shaping Financial Leadership

Several key trends are impacting the roles of Financial Controllers and FDs in 2025:

1. Automation and Technology

Automation and emerging technologies are reshaping both roles. A large majority of finance leaders are prioritising process automation with over 80% say automating areas like accounts payable is crucial.

Financial Controllers have been quick to adopt new tech, 67% are already using AI for daily tasks​, and 88% are leveraging data for strategic insights. This shift allows controllers to focus on data interpretation, not data entry.

For Finance Directors, embracing technology means better real-time data for decision-making, but also the need to guide their teams through digital transformation.

You need skilled financial leaders to interpret data and guide strategy. Both FDs and controllers should be comfortable with finance software, analytics, and AI. Companies should consider whether their finance leader (be it FD or controller) has the tech savvy to improve

2. Talent Shortages

Skilled finance talent is hard to find. Today’s controllers and FDs need broader competencies in analysis, technology, and business partnering, not just traditional accounting.

In 2024, 83% of UK businesses reported a shortage of finance talent. Many are now turning to fractional FDs or outsourced controller services. EY’s global survey found that 86% of controllers expect their role to evolve significantly by 2030 - 39% say they’ll focus more on driving growth than just reporting it. This points to controllers taking on more strategic responsibilities, blurring lines with what we traditionally expect from Finance Directors.

3. Strategic Alignment

A key consideration for any growing business is how well your finance function aligns with your business strategy.

With nearly 40% of Financial Controllers seeing their future role centered on driving business growth and value creation for growing companies, it’s important to ask: do we have someone who can chart the financial strategy (finance director), and do we have someone ensuring the financial engine is running smoothly to support that strategy (controller)?

In some cases, a talented Financial Controller can take on elements of strategic planning, especially if an organisation isn’t ready for a full-time Finance Director.

4. Compliance and Regulation

Meanwhile UK finance leaders have grown more cautious amid global headwinds. According to Deloitte’s Q1 2025 CFO Survey, only 12% of CFOs (finance directors) felt it was a good time to take on more risk – which is less than half the long-term average risk appetite.

Here, the Financial Controller is the front-line defender. Controllers establish internal controls, ensure compliance with accounting standards (UK GAAP/IFRS), oversee regulatory filings (like HMRC returns, Companies House reports), and prepare for audits.

They make sure the company’s financial practices meet all legal requirements, which protects the business from fines, penalties, or reputational damage – while Finance Directors take a broader view of risk, making sure the business adapts to changing laws.

Financial Controller vs Finance Director – Make the Right Move for Growth

Choosing between a Financial Controller vs Finance Director comes down to your business’s needs, size, and goals. Some companies start with one. Many end up needing both.

If you’re still unsure which role fits your situation, it might be time to consult with experts who understand the nuances of financial leadership.

Sanay offers flexible, professional finance functions and Financial Controller services to growing UK businesses of all sizes - whether you need a remote Financial Controller or a fully outsourced finance department. We provide operational excellence and financial insight to support your next stage of growth.

Get in touch with Sanay to explore how enhanced financial control can support your business’s next chapter.