When establishing a recruitment business, you will need the help of an accountant to complete all your statutory year-end accounts for you. It’s likely you’ll base this decision on a recommendation from a friend or family member, or even reviews on the internet. But the one factor most recruiters skim over, is the decision to select a recruitment-specific accountant and the importance of having this type of specialist on speed-dial.
TBOS details why it pays to have a recruitment accountant on side from day 1…
EFFICIENT TAX PLANNING ALIGNED WITH YOUR AGENCY
Recruitment is a growing industry where consultants, directors and companies can make large profit margins in a very short space of time, which is why it is important for you as a director to have a good understanding of what taxes are due and what can affect them. Recruitment accountants can give specialist advice on VAT schemes, what effects corporation tax and the best ways to take profits from the business to ensure a steady flow of income for you and the agency – all whilst carefully monitoring your tax responsibilities.
RECRUITMENT-SPECIFIC ACCOUNTANCY ADVICE
A regular accountancy service will perform your year-end accounts and provide accountancy advice however, they will not have a good understanding of invoice finance, contractor/temp revenues and recruitment-specific legislation. Without this core knowledge this could mean your agency figures are not showing the correct gross profits, which sometimes leads to an overpayment on your contractor funding. With the correct recruitment accountant, they can manage your invoice finance, daily bookkeeping, management accounts and your year-end reports to ensure your agency figures are always correct. Please note there are huge savings to be made each year on contractor finance if managed and reported on correctly.
For this reason, TBOS carry out free annual finance reviews on our clients to ensure they are using the funding that is required for their agency, if a new finance deal is available, we negotiate the improved rates and manage the switch, delivering a significant finance saving.
REGULAR RECORD KEEPING
Most accountants produce their figures by working from a pile of invoices, expenses and bank statements generated from the past month or quarter. If there is an issue or any mistakes on any of the records, this is not picked up until long after the fact which can be hard to rectify. There are recruitment accountants who offer additional services like bookkeeping, management accounts and credit control which carefully monitors the daily figures of the business. With this type of comprehensive service, mistakes can be picked up much earlier and payments managed thoroughly. This is vital for any business, even more so in today’s technology climate as cyber attacks are becoming more and more common.
SPECIALIST SUPPORT ON PLANNING YOUR AGENCY’S EXIT STRATEGY
Recruitment accountants will have invaluable knowledge and experience on preparing an agency for sale. Having this type of contact on speed-dial will give you access to having this type of conversation at a later date.
LOOKING FOR A RECRUITMENT ACCOUNTANT FOR YOUR AGENCY?
TBOS can certainly help, we offer a specialist back office team which includes recruitment accountants, invoicing clerks, bookkeepers, credit controllers, contract administrators and more.
Our comprehensive service offers excellent value for your hard-earned recruitment money, as you pay-as-you-go and you receive a full accounts team under your agency name. With our team only a phone call away, you can rest easy your complete back-office and accounts operation is taken care of. This means more time for you and your team to make more placements!