How it runs for staffing and recruiting agencies
Your dedicated accountant rebuilds each back month from those sources, posts payroll by client and state, records funding activity, and reconciles every account to the last clean period. State payroll tax liabilities are agreed to the returns already filed, and differences are listed for your provider.
What is catch-up bookkeeping?
Catch-up bookkeeping is a one-time project that records and reconciles months or years of transactions that were never entered. The goal is a set of books where every bank, card and loan balance agrees with the statement and every period can be reported on. It ends when the backlog is current and reconciled, usually followed by ongoing monthly bookkeeping.
What we handle for staffing and recruiting agencies
- Back months rebuilt from Bullhorn invoice exports and payroll registers, oldest first
- Payroll posted by client and work state for each back month, burden allocated
- Funding advances, fees and reserve releases reconstructed from the funder's statements
- State payroll tax liabilities agreed to the returns already filed
- Opening balances agreed to the last filed tax return before the rebuild starts
The KPI that matters here
Each back month is rebuilt, reconciled and reviewed within the schedule agreed at kickoff.
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
Catch-up bookkeeping in other industries
Frequently asked questions
How much does catch-up bookkeeping cost for a staffing agency?
Market benchmarks put catch-up work at $200 to $500 per back month (John Galt Finance, 2026), and staffing files tend toward the upper end because each month has weekly payroll and invoicing to rebuild. The estimate depends on temps on assignment, states and whether a funder is involved. Pricing depends on volume and scope, so we send a custom quote within 1 business day.
What if our state payroll tax accounts never balanced?
The rebuilt liability by state is compared with the returns your payroll provider filed, and each difference is traced to a payroll, a correction or a payment. We list what we find for you and your provider; we do not file amended returns or give tax advice. Going forward, the quarterly reconciliation in the month-end close keeps the accounts balanced.
Can you rebuild margin by client for past months?
Yes, as long as Bullhorn or your payroll provider can export invoices and registers by date, which they normally can for several years. Each month's payroll is posted by client and state, burden is allocated, and invoices are matched. The result is a monthly margin report by client for the whole back period, which is what buyers and lenders ask for.
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