How it runs for staffing and recruiting agencies
Perm fees inside their replacement window need a review. The funding account, payroll tax liabilities by state and workers' compensation accrual all need to agree to outside statements. Your dedicated accountant runs those steps from our CloseTrack checklist, a team lead signs off under Two-Tier Review, and you receive statements within five business days.
What is month-end close outsourcing?
Month-end close outsourcing means an external accounting team performs the steps that turn a month of transactions into finished financial statements: reconciling every account, posting accruals, prepaids and depreciation, checking cut-off, reviewing and locking the period. You keep your software and your accountant. The provider runs the checklist on an agreed calendar and hands you reviewed statements.
What we handle for staffing and recruiting agencies
- Straddle-week wage and revenue accruals posted for hours worked but not yet paid or billed
- Payroll tax liabilities by state agreed to the provider's quarter-to-date filings
- Funding account balance agreed to the funder's month-end statement
- Perm fees inside the replacement window reviewed and any refunds posted
- Workers' compensation accrual updated from payroll by class code
The KPI that matters here
Statements delivered within five business days of month-end with every liability account agreed to an outside statement.
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
Why do straddle-week accruals matter for a staffing agency?
Because a week of payroll can be 20% or more of a month's cost, and if it lands in the wrong month the margin swings for no real reason. The accrual records wages and the matching revenue for hours worked up to the last day of the month, then reverses when the actual payroll and invoices post. Months become comparable.
How do you agree payroll tax liabilities to filings?
Each state's withholding and unemployment liability account is compared with the quarter-to-date returns your payroll provider files, and any difference is traced to a specific payroll or correction. Unreconciled state balances are the most common finding in a sale or audit, so the close clears them every quarter rather than at year-end.
What does Two-Tier Review check on a staffing close?
The team lead checks that the three-way hours match holds for every week in the month, that accruals are supported by timesheets, that the funding account agrees to the funder's statement, and that gross margin by client is in line with the markup on each job order. Questions for you are listed in a short note with the statements.
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