How it runs for staffing and recruiting agencies
We never move money; you release every payment.
What is accounts payable outsourcing?
Accounts payable outsourcing means a remote specialist runs the process from vendor invoice to approved payment run: capturing bills, coding them to the ledger, matching them to purchase orders and receipts, chasing approvals and preparing payments for release. The business keeps control of the bank account and the final release. The provider works in the company's own software.
What we handle for staffing and recruiting agencies
- Job-board, background-check and screening vendor bills coded by desk or client
- Workers' compensation premiums and audits reconciled to payroll by class code
- 1099 contractor invoices matched to timesheets, with W-9s collected up front
- VMS fees, rebates and funding-line charges entered as their own expense lines
- Weekly payment run prepared for your approval, with due dates and discounts flagged
The KPI that matters here
Every vendor bill is entered, coded and ready for approval within three business days of receipt.
Staffing compliance notes
Multi-state payroll tax
Each state where temps work needs withholding and unemployment registrations, and several states have local income taxes on top. We post payroll by work state, reconcile the liability accounts to the returns your payroll provider files, and flag new work states before the first assignment starts. Your provider files; we keep the books and the reconciliations that prove the filings.
Worker classification
Whether a placed worker is an employee or a contractor depends on control, integration and the applicable federal or state test, and the wrong answer is expensive. We keep W-2 and 1099 spend separate, hold the classification reason with the vendor record, and report 1099 volume monthly so you and your counsel can review it. We give no legal advice on the test itself.
Payroll funding and factoring
Agencies that use a funding partner receive advances on invoices, pay fees, and get reserves released when clients pay. Each of those movements is reconciled to the invoice it relates to and to the bank, so the balance sheet shows the true amount owed to the funder. The funding agreement's reporting requirements are prepared from the reconciled books.
Timesheet-to-invoice controls
The invoice to a client should be provable from approved timesheets, and the payroll should be provable from the same sheets. We keep the three-way match every week, hold client approvals with the invoice, and log corrections with a reason so disputes months later can be settled from the record.
Staffing software we work in
More for staffing and recruiting agencies
Other services for staffing
Frequently asked questions
Do you match 1099 contractor invoices to timesheets?
Yes. Each contractor invoice is matched to the approved hours on the job order before it enters the payment run, so you never pay for hours the client has not approved. Rate differences are flagged. Contractor spend is tracked by worker for the 1099-NEC data we prepare for your tax preparer at year-end.
How do you handle the workers' compensation audit?
Payroll is coded by class code and state through the year, so when the carrier's audit arrives the wage report is already in the format the auditor needs. Premium invoices are reconciled to the estimated payroll, and the audit adjustment is posted when it is agreed. Your broker handles the carrier; we prepare the numbers.
Can you track client rebates and VMS fees separately?
Yes. Rebates owed to clients and fees deducted by a VMS are posted to their own lines rather than netted against revenue, so the gross margin report shows what each client program actually costs. A monthly summary lists fees and rebates by client, which is useful when renewing a master services agreement.
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