Finding the Right Accountant for Your Recruitment Agency
There is a vast pool of accountants who are willing to handle your recruitment accounts and reporting. Many people select an accountant based on a referral from a relative or friend, choose a small local company, or a prefer a prominent national firm that they found online. A significant number of recruiters may not be aware of the benefits of hiring an accountant who specialises in recruitment...
- Author
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Steven Case
Your accountant is your financial guardian and is responsible for preparing the data you need for both your year end accounts and HMRC submissions. They should also offer guidance on how to efficiently manage your company for tax and auditing purposes. Furthermore, your accountant should be capable of providing specialised advice for the recruitment industry and keeping you informed about the current financial status of your business, including changes to PAYE.
Our bean-counting superheroes have drawn up a list of reasons why an accountant with expertise in recruitment agencies would be a good call.
Management Accounts
The performance of a recruitment agency and their business cashflow can be best assessed through the use of management accounts. These accounts allow for the tracking of company income and expenditure. When management accounts are only provided on a quarterly, semi-annual, or annual basis, it can be hard to make ongoing business decisions.
Reporting
Typically, when accountants produce their reports, they have taken invoices, expenses and bank statements from the last month or quarter, so errors or discrepancies may not be detected until well after the transaction has occurred.
Generic advice
Many accountants give advice that is not necessarily tailored to the recruitment industry. You need to choose accounting heroes who know about invoice financing, contractors and the temporary staff gap, as well as specific laws related to recruitment.
Tax Planning
Directors in the recruitment industry need to know about changes in any taxes that need to be paid and the factors that can impact them. It is our financial defenders’ job to understand the implications of the upcoming ‘Making Tax (including VAT) Digital’ changes, as well as understanding how Corporation Tax rules need to be applied to your specific business. Additionally, directors should be kept up to date with the most tax-efficient methods for withdrawing profits from the company and the corresponding implications to their personal tax accounts.
Planning an Exit Strategy
Most recruiters have their own unique vision for the growth of their agency, as well as an idea of when it’s time to develop an exit plan. Neglecting to plan ahead can hinder progress and potentially result in financial expenses for restructuring the company in the future. At times like this, you need the x-ray vision of a bean-counting superhero.
Why Finance Box is good for recruiters
Finance Box is able to take care of every aspect of your agency’s finances. Our services encompass tasks such as daily reconciliations, recording of supplier invoices and expenses, production of monthly management reports and accounts, filing of VAT returns, and preparing year-end accounts. On top of this we can provide tailored advice for recruitment agencies on allowable expenses, staff payroll, commissions and tax-efficient methods for directors to withdraw funds from their company.
We’d love to have a chat with you about how we could help in managing your agency's back-office so please get in touch for a no-obligation chat.