How it runs for staffing and recruiting agencies
Your dedicated accountant reconciles every one of those accounts in QuickBooks Online each month, ties the payroll debit to the register, agrees the funding account to the funder's statement, and matches VMS payments gross to net. Every unmatched item is listed with a reason instead of being plugged.
What is a bank reconciliation service?
A bank reconciliation service compares the transactions in your accounting software with the transactions on your bank and credit-card statements and explains every difference. The goal is a ledger balance that agrees with the statement after timing items such as outstanding checks and deposits in transit. Done monthly, it catches missing entries, duplicates, bank errors and fraud early.
What we handle for staffing and recruiting agencies
- Weekly payroll debits and tax impounds agreed to the payroll register by state
- Funding-line statement reconciled to advances, fees and reserve releases
- VMS payments matched gross to net with the fee posted separately
- Client ACH and check receipts tied to the invoices they paid
- Payroll and operating accounts reconciled monthly with zero plugged items
The KPI that matters here
Zero unreconciled items older than 30 days across operating, payroll and funding accounts.
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
Bank reconciliation in other industries
Frequently asked questions
Why does the payroll debit not match our payroll register?
Because the provider usually debits net pay, tax impounds and its fee as separate amounts, sometimes on different days, and garnishments or benefit deductions may go elsewhere. The reconciliation ties each debit to a line on the register. If a difference remains, it is usually a voided check or a late correction, and it is listed with a reason.
How do you reconcile a payroll funding or factoring account?
The funder's statement lists advances, fees, reserves held and reserves released, invoice by invoice. Each movement is posted to the funding account in QuickBooks Online and matched to the invoice it relates to. The balance then agrees with the funder's statement every month, and the fee total is visible as a cost of funding.
Do you reconcile VMS payments that arrive net of fees?
Yes. The invoice stays at gross, the VMS fee is posted as an expense, and the net receipt is matched to the bank. This keeps revenue and DSO accurate and makes the cost of each VMS program visible. Our payment processor reconciliation service covers the same gross-to-net matching for card and platform payments.
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