There are many different types of outsourcing services available to recruitment agencies nowadays, such as pay-and-bill providers, CV sourcing and multi-posting job-boards. Back office and accountancy services have evolved from just having an accountant, to an all-encompassing service so that the agencies can concentrate on recruiting.
The misconception is that outsourced back office and accounting services are only for agencies of a certain turnover size or if they just cater to contract/temporary placements. However, many of the back office providers on the market are aimed primarily at new start up recruitment agencies and can not only help to contract/temporary agencies, but also permanent recruitment agencies.
There are many advantages for recruitment agencies that are considering fully outsourcing their back office and accounting needs, both from a financial and also time perspective. Below is a list of reasons why all recruitment agencies should consider outsourcing their back office and accounting processes:-
- PRICING IS BASED ON PRODUCTIVITY
Outsourced back office and accounting services are often charged at either as a cost per placement/transaction, or a percentage of turnover cost basis. This means that as a business grows so do the fees but at the same time if this drops for any reason (time of year, loss of placements, delays on start dates), then so does the fee. This helps businesses in sectors such as education where placements are only made during term time.
- MULTIPLE SKILL SETS AT A FRACTION OF THE COSTS
Outsourced back office and accounting services will include all the services an agency will require to run the agency under one roof including invoicing, credit control, bookkeeping, payroll and accountancy – all at a fraction of the cost. If an agency were to employ these skills as individual staff members, this may involve having at least an extra 2-3 people on your payroll.
- MAKE YOUR COMPANY APPEAR LARGER
Outsourced back office and accounting services often include the ability for the company to communicate with clients and candidates under the agency name, either by telephone or email. This additional service makes a 1 or 2 person start up business appear much larger as there are multiple people answering emails and making telephone calls as your agency. Many will also offer the ability for agencies to use their office as a registered office address, so if the agency starts from a front room or kitchen at home they have a way of appearing to have their own office presence.
- FULL TIME SERVICE NOT AT A FULL TIME SALARY COST
Outsourced back office and accounting services will provide a full time service to the agencies instead of the agencies having to employ back office staff in a part or full time basis. It is also the outsourced company’s responsibility to ensure that the service is provided on a full time basis, whereas when you have employed staff members you have to contend with holidays, sickness and HR issues to provide a continuous facility.
- ADDITIONAL OFFICE COSTS INCLUDED
Outsourced back office and accounting services will often include other office costs such as stationary, postage, printing and accountancy licence software fees. By outsourcing the agency back office to another company also allows the agency to utilise the office space fully for recruiters instead of back office staff.
- RECRUITMENT DIRECTORS HAVE A COST PER HOUR
Outsourced back office and accounting services ensure that the recruitment agency directors do not have to be drawn into administrative tasks such as raising invoices, chasing debtors and even doing bookkeeping. If the agency director is taking their sales time to do these tasks then it is stopping them from generating profit, motivating staff or advertising the company; there is a cost to the company for this loss of productive sales time.
- ALLOWS YOU TO CONCENTRATE ON RECRUITING AND GROWING YOUR AGENCY
Outsourced back office and accounting services are used by agencies to allow the directors to make more placements, either themselves or by motivating their staff to do this for them. Also, most outsourced services will provide management reporting and advice on how agencies can grow and develop their agencies to make them more profitable and successful.
TBOS provides full comprehensive back office and accountancy services to various size agencies in multiple markets. The service works for both permanent and contract recruitment agencies, especially new start up agencies as the costs are based on a per placement fee basis instead of being based on a percentage of the invoice values. Even permanent only recruitment agencies making 1-2 permanent placements can get a full time back office and accounting service for a fraction of the cost and allow the directors to concentrate on the growth of their business. TBOS also provides a start to finish solution, so all services and costs are under one roof and the staff at TBOS know all aspects of the agencies invoicing, spending and growth to provide full and comprehensive advice on a range of situations.
For more information on how TBOS can help outsource your back office and accounting needs, please contact our office.