TBOS manages the back-office and accounts for over 100 recruitment agencies where we provide a full back-office and accountancy service. Our comprehensive service includes that we raise not only any contract/temp invoices but also the invoices relating to permanent placements.
However, over the years, we have spoken to a number of directors who insist that they want to raise their own invoices for permanent placements. Each director has tried to explain why they should do this part of the process, and they often give very poor excuses, such as “we want to ensure they are correct”, “we want to know when they have gone out” and “we want to ensure that the client gets them” with each of them falling flat.
These excuses then extend to other back-office tasks that they also want to retain such as credit control and bookkeeping, citing that they could do this better than us.
Below are some of the reasons why an agency should be considering outsourcing mundane administrative tasks:-
DOING YOUR OWN INVOICES MAKES YOUR RECRUITMENT AGENCY LOOK SMALL
If you are the person who has made the placement with the client, and then you raise the permanent invoice and later chase the client for payment, this makes your agency look like you are a small one-person organisation. However, if you outsource these functions to a company where separate individuals complete the tasks, it makes the company appear much larger with more staff available to help the client.
WASTES VALUABLE SALES TIME
Every recruiter should be spending their time on the phone trying to speak to clients or candidates and not doing tasks such as invoicing, credit control, or bookkeeping. A recruiter should evaluate their hourly rate based on their sales and then work out the time spent on admin tasks to understand how much it costs their company.
POTENTIAL TO NOT BE COMPLIANT
Recruiters are fantastic at recruiting but often do not understand the accountancy requirements to go onto invoices or complete bookkeeping for their company. If your invoices do not have the correct details, then this could lead to unpaid invoices or incorrect VAT charges. Also putting inaccurate bookkeeping figures onto accounting software can lead to wrong profit figures, additional costs for accountants to rectify, investigations by HMRC and the potential of fines and penalties.
The agency directors who have engaged a qualified company to look after these tasks will often find they have more time to make more placements, train their internal staff and plan their future business growth. Agency directors who do complete these tasks are not working as efficiently and often find them a distraction, instead of concentrating on what they are good at.
TBOS works with over 100+ contract and permanent recruitment agencies providing a full back-office and accountancy solution to allow the recruiters and directors the time to spend on doing what they do best… recruiting and growing their agencies! Please contact our office if you would like further information on how we can help your agency.