Recruitment is one of those businesses where the finances can get complicated very quickly. You might be paying contractors and temps on a weekly basis, chasing client invoices that are thirty or sixty days overdue, managing commission structures for your own team, and trying to keep track of whether your cash position can support your next hire. All of this happens at pace and there is very little room for error. We work with recruitment agencies and independent recruiters across the UK who need an accountant that understands how their business operates.
We cover all the financial and compliance tasks that take time away from placing candidates and growing your desk.
We run your weekly or monthly payroll for every worker type, handling PAYE for employed temps, making sure contractor payments are processed correctly, and managing commission calculations for your consultants. Everything goes to HMRC on time.
We keep a clear record of all contractor payments, making sure they are correctly classified for tax purposes and that any IR35 considerations are identified and dealt with properly rather than left as a potential liability.
We track your invoices and payments throughout the month, so you always have a clear picture of what is outstanding, what is overdue and whether your cash position is healthy enough to support your commitments.
We help you keep on top of your client billing, making sure invoices go out promptly after placements are made, that payment terms are tracked, and that you always know which clients owe you money and how long it has been outstanding.
We prepare and submit your VAT return each quarter and handle your corporation tax, making sure all your income is reported correctly and that you are claiming every legitimate expense against your profits.
We give you regular reports showing your gross profit by desk or division, your consultant performance against targets, and your overall business profitability, so you can make informed decisions about where to invest and where to pull back.
We become a reliable part of your back office so you can focus entirely on filling roles and growing your agency.
A real time view of your cash flow so you are never surprised by a shortfall
IR35 managed correctly so your contractor placements do not create a tax liability down the line
Payroll that runs reliably every week, so candidates are never let down by a late payment
Clear profit reporting by desk or division so you always know which parts of the business are performing
The gap between paying your contractors and temps and receiving payment from your clients is the defining cash flow challenge of the recruitment sector. You pay out wages every week. Your client pays their invoice thirty or sixty days later. If you are growing quickly and placing more candidates, that gap gets wider before it gets better. If a client pays late or does not pay at all, it can put serious pressure on your ability to meet your own obligations.
We help recruitment businesses keep a close eye on their cash position throughout the month, not just at the end of it. We track what has been invoiced, what has been paid and what is outstanding, and flag anything that is starting to look like a problem before it becomes one.
Something we see regularly: recruitment agencies that are winning business and growing their placements but finding themselves under cash flow pressure because the gap between paying candidates and collecting from clients has widened faster than expected. The business looks profitable on paper, but cash is tight in practice.
Understanding this gap and planning around it is one of the most valuable things a good accountant can do for a recruitment business.
If your agency places contractors who work through their own limited companies, IR35 is something you cannot afford to ignore. Since 2021 the responsibility for determining whether a contractor falls inside or outside IR35 sits with the end client for medium and large businesses, but the recruitment agency can still be held liable in certain circumstances if the rules are not followed correctly.
We help recruitment agencies understand their obligations around IR35, make sure the right processes are in place when placing contractors, and advise on what to do if a client’s IR35 determination affects an existing placement. This is not an area where it pays to guess.
Expert Chartered Certified Accountants helping UK businesses protect and grow their income.
Friendly support from a local team that understands your business. Book your free consultation today and take the first step towards financial clarity and peace of mind.
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74 St James Road, Blackburn, BB1 8ET
We work with clients across the UK, so you can get support wherever you are
