We get a lot of questions here at TBOS about how our back office solutions work and about some of the ins and outs, so for your convenience we have produced this FAQ.
- Q1: Can anyone set up an agency with Total Back Office Solutions Ltd?
A1. TBOS offers back office and accounts services to recruitment agencies; we do not teach or recruit for any of our agencies. Our ideal client would be an existing recruiter who is looking to set up their own recruitment agency. We would look after the set up and daily running of the back office with the recruitment and sales being completed by the recruiter. It is not advisable to set up a recruitment agency if you have no experience within the recruitment industry.
- Q2: What funding can I get for my new agency?
A2. TBOS can help to arrange invoice finance (lending against the value of the invoices you raise) for recruitment agencies dealing with large number of contract placements (subject to credit approval). TBOS also offers a short term funding solution called TBOS Freedom for agencies making a small number of contract placements. It is harder to get funding on permanent placements if required unless you have a large contract debtor book and this will often only be funded at a lower percentage. Other types of funding such as loans and overdraft are harder to get in this current climate especially for new start-up businesses so having funds is important for any new agency.
- Q3: Will TBOS be raising invoices as my company name/identity or as Total Back Office Solutions Limited?
A3. The service TBOS provides its agencies is a full back office service under the recruitment agency’s name and identity. This means all invoicing, telephone calls, emails and correspondence is completed in the agency name with the clients and candidates not knowing that TBOS are involved. All invoicing is sent out with the agency logo, name and bank details and any credit control is completed under the guise of the invoicing agency.
- Q4: Do Total Back Office Solutions Ltd take their fees as a percentage of my turnover or a percentage of my profits?
A4. TBOS do neither of these fee practices as TBOS work on a “per contractor per week” fee basis for contract placements and “per permanent placement” fee basis for permanent placements. The fees are based on a sliding scale so the more contractors/placements made the cheaper our weekly fee becomes. TBOS only charges for the weeks the candidates work so any holiday or sickness weeks not worked are not charged.
- Q5: Do Total Back Office Solutions Limited become Directors or Shareholders of my recruitment agency?
A5. TBOS do not become Directors or Shareholders of any of our recruitment agencies as we are here as advisors and accountants only for our agencies. Therefore the cash-flow and company policies and processes are the responsibility of the agency and we will work to the information given by the agencies.
- Q6: When I start up do I get access to a database, free website, legal contracts, job board access and insurance under TBOS?
- Q7: I am an existing recruitment agency, what are the main advantages of using Total Back Office Solutions Ltd instead of having an in-house accounts team?
A7. TBOS is an ideal way for existing agencies to have a full time payroll and accounts team without having to pay for the numerous staff and desk costs. Using TBOS you have an invoicing clerk, payments clerk, credit controller, management accountant and tax advisor all within our “per week per contractor” fee. As you are not employing staff directly this can save you time on HR issues and continuation of services when staff are ill or on holiday. There are also significant savings on stationary, printing, postage, computer program licences, furniture and IT equipment costs. Also as we only deal within the recruitment industry we can keep you updated with changes in legislation and policies which may affect the workings of your agency.
- Q8: What makes Total Back Office Solutions Limited different to its competitors?
A8. TBOS is a full back office solution for the recruitment industry looking after all aspects from timesheet processing through to final accounts. We are not a pay-and-bill company who only look after the timesheet and invoicing process, contractor payments and funding although that is part of our service. We are not an accountancy practice who only look after the management accounts, VAT returns and year end statutory reporting although that is part of our service. We look after both aspects of these services and more. Also our pricing is based on your placement production levels instead of turnover/profit levels which is easier to manage and work into your profit margins.