Accountants for recruitment agencies

A recruitment agency pays temps weekly, often before it has been paid by the client. That makes payroll accuracy and cash planning the heart of the business. Each run has to handle PAYE, National Insurance, holiday pay, pension contributions and any umbrella arrangements correctly.

We run payroll on your schedule, produce a funding report for each run and keep a 13-week cash forecast that shows what you need to fund.

• Weekly payroll
• Funding report each run
• 13-week cash forecast

Gross margin is the difference between what you charge the client and what you pay the temp, including employer costs. We calculate it by contract and by consultant, so you can see which placements and desks are profitable after on-costs.

For permanent placements, we recognise fees as they are earned and provide for rebates where a candidate leaves early.

• Margin by contract and desk
• Employer on-costs included
• Rebates provided for

Many agencies use invoice finance, which changes how debt and income appear and needs careful VAT handling. Temporary labour and permanent fees can carry different VAT treatment, so we check each income stream.

We also keep the records that Agency Workers Regulations and right-to-work duties require, so audits are straightforward.

• Invoice finance accounted correctly
• VAT by income stream
• Compliance records kept