How it runs for staffing and recruiting agencies
DSO by client. Your dedicated accountant prepares the package inside QuickBooks Online after the close, adds a plain-English note on what moved and why, and formats the lender or funder report in the layout they require. Owners get the same short package every month, so trends show up early.
What is outsourced financial reporting?
Outsourced financial reporting means a remote accounting team prepares your periodic financial statements and management reports instead of an in-house controller. The team works from your own accounting file, applies a consistent close and review process, and issues a report pack on a fixed date each month. You keep the data, the software and the decisions.
What we handle for staffing and recruiting agencies
- Gross margin by client, desk and placement type after burden and rebates
- Temp revenue, perm fees and conversion fees reported as separate lines
- Cost of funding and VMS fees shown as a percentage of billings
- Temps on assignment, revenue per recruiter and fill rates from Bullhorn alongside the financials
- Funder and lender reports prepared in their required format each month
The KPI that matters here
The monthly package, including margin by client, is issued within five business days of close.
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
Financial reporting in other industries
Frequently asked questions
Can you show gross margin by client with all the burden included?
Yes. Each client's revenue is set against the pay, employer taxes, workers' compensation, benefits and any VMS fee or rebate for the temps placed there. The result is the true margin per client, which is often several points below the headline markup. The report is the basis for most rate conversations with clients.
How do you report perm placement revenue?
Perm fees are shown on their own line with the replacement-window status, so temp margin is not distorted by a large fee that may partly reverse. Refunds and replacements are shown against the original fee. Your CPA sets the year-end recognition policy; the monthly package keeps the data that supports it.
Do you prepare reports for our funder or bank?
Yes, in the format the funder or bank requires, usually an aging, a margin summary and a payroll reconciliation. The reports come from the reconciled books, so they agree with the invoices assigned to the funder. We provide preparation support; anything that needs a signature is reviewed and signed by you or your CPA.
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