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Accounting for Recruitment Agencies
Here at BHT Partners, we understand what is involved in running a successful Recruitment Agency. We acknowledge that personal relationships are the foundation stone in recruitment and recruiters are passionate ‘people-persons’ who are results driven, just like accountants!
Recruiters need to be determined and have perseverance to drive through numerous phone calls, emails and CVs every day in search of that perfect match between client and candidate. In the recruitment business, you change lives and here at BHT Partners we’re in the business of changing lives as well. We do more than just crunch numbers and prepare tax returns, we help business owners like you grow their business, their profits and their wealth.
While we can certainly assist you with your GST and tax compliance matters including your Business Activity Statements (BAS), PAYG,
superannuation, cash flow, bookkeeping and payroll, it is our services beyond compliance that distinguish us from other firms. We can help
you plan, streamline your systems and processes and provide marketing assistance to help you grow your business. No job is too big or too
small for the team at BHT Partners.
Apart from all the usual tax compliance matters we’ll advise you on the most appropriate tax structure for your business and offer strategies to protect your assets and create wealth. We understand the importance of the right software to manage your bookkeeping, payroll and invoicing and we will take into account your business needs (bookkeeping, payroll, invoicing etc.) and level of accounting skill when recommending the most appropriate accounting software program for your business.
Our services to recruitment agencies are both broad and deep. We use benchmarks to compare your performance against industry averages to assess what is working in the business and what areas need working on. Over the years we have helped clients obtain funding for their commercial property, new equipment and motor vehicles (chattel mortgage, lease etc.) and have prepared numerous business plans and cash flows to help clients buy into a recruitment agency.
STARTING YOUR RECRUITMENT AGENCY
We are recognised as business start-up specialists and if you are looking to start or buy a recruitment agency there are numerous issues to consider. There is site selection, tax registrations, insurances, the commercial lease, the office fit out and of course, finance. We can assist you in all of these areas plus provide advice on HR matters, payroll and the preparation of a business plan.
Over the past two decades our team of accountants have helped dozens of entrepreneurs get their business off to a flying start. We offer you experience, technical tax knowledge and most importantly, an intimate understanding of the recruitment industry.
Starting a business is a bit like building a house and you need solid foundations. In a business sense these include the right taxation
structure, accounting software, insurances, a marketing plan, website and social media channels. Your choice of business structure is
critical and there are a number of different options including a company, sole trader, partnership or trust. When selecting a business
structure, asset protection is a key consideration as well as your family situation, forecast level
of profit and your future plans regarding admission of new business partners.
Accounting software is another brick in the business foundations and the wrong choice can be catastrophic. Poor financial records are one of the biggest causes of business failure in this country and up to date, accurate records let you make informed business decisions. The wrong choice of software can lead to records that resemble a 'computerised shoebox' which conflicts with our brief of helping you reduce your bookkeeping and compliance costs. We love working with cloud based programs like Xero, MYOB and QuickBooks and where required, we can train you or you staff to use the software which will reduce your frustration and costs.
As you know, to recruit the right person for a specific role, you need the right tools and skills. When starting a business we offer you a number of tools including our start-up expense checklist to identify all your potential establishment costs. It dissects your start-up costs into several categories including tools, equipment, IT expenses, professional fees and marketing costs. These figures automatically feed into an integrated cash flow budget to help you identify your start-up finance requirements. These figures can then also slot into your business plan.
Given occupancy costs are often the second highest expense after wages in a recruitment agency, we can help you negotiate the terms of your lease and where required liaise with your solicitor. Through our affiliate partners we can also help you locate suitable funding to finance your office fit out, equipment or motor vehicle. Using industry benchmarks we can analyse the performance of your recruitment agency and compare it against your industry peers so you know what is working in the business,what's not working and what needs working on.
MARKETING YOUR BUSINESS
As a professional recruiter you need marketing muscle to succeed in such a competitive industry. In fact, your marketing could be the difference between gloom and boom. Through our network of marketing experts we can help you with your branding (business name, logo and slogan) and also introduce you to the right people to develop your website and create your social media campaigns.
Recruitment agencies rely heavily on client referrals, online advertising and conventional marketing methods like yellow pages and networking to win new business. While some of these techniques remain effective, you need to move your marketing focus online to align with the shift in consumer behaviour. Google and LinkedIn are now the primary sources of new business for the recruitment industry.
To generate leads your website must appear at the top of page one in a Google search for 'recruitment agency in your suburb'. The truth is, most of your competitors' websites are nothing more than electronic billboards that simply list the who, what and where of the business. Over the past few years our marketing affiliates have worked with a number of clients to help them create quality and affordable websites that pay for themselves many times over. Your website should be the heart of your marketing and you need to look at it as an investment not a cost. Choosing the right development partners will ensure you get expert advice and assistance with your content, search engine optimisation and video production plus they'll make sure your website is responsive to mobile devices.
We will help you understand the four ways to grow a business plus identify the key profit drivers in your business. We can walk you through a number of profit improvement strategies and even quantify the profit improvement potential in your business. Our role is to make sure you know your numbers and don't leave any profit or tax savings on the table.
That’s really just the beginning because as accountants we can do some financial modelling and prepare some ‘what if’ calculations. This lets us project your agencies best and worst case profit scenarios. Next, using industry benchmarks we can compare the performance of your agency against your competitors so you understand what is working in the business and what needs working on.
Our mission is to help you fast track your business success and the team at BHT Partners offer you a range of accounting, taxation, marketing and business coaching services including:
- Start-Up Business Advice for Recruitment Agencies
- Advice regarding the Purchase or Sale of your Business
- Tools including the Start-Up Expense Checklist and Templates for a Business Plan, Cash Flow Budget, Letterhead and Business Card
- Advice and Assistance with the Establishment of Your Business Structure
- Tax Registrations including ABN, TFN, GST, WorkCover etc.
- Preparation of Business Plans, Cash Flow Budgets and Profit Projections
- Accounting Software Selection and Training – Bookkeeping, Invoicing, Quotes & Payroll
- Preparation and Analysis of Financial Statements
- Preparation of Finance Applications - Loans to Buy a Business, Expand, Franchise Fees
- Bookkeeping and Payroll Services - MYOB, Xero, Reckon & Others
- Tax Planning Strategies
- Assistance with your Marketing including your Branding, Corporate Brochure etc.
- Advice and Assistance with your Website Development, Content, Videos, Blog Posts and SEO
- Wealth Creation Strategies and Financial Planning Services including Transition to Retirement
- Self Managed Superannuation Funds - Establish & Manage
- Industry Benchmarking and Management of Key Performance Indicators (KPI's)
- Vehicle & Equipment Finance (Chattel Mortgage & Lease)
- Monitoring and Controlling Labour and Sub-Contractor Costs
- Advice & Assistance with Pricing your Services and Claiming Motor Vehicle Expenses
- Recession Survival Strategies
- Advice regarding Employee Relations and Workplace Laws
- Business & Risk Insurances (Income Protection, Life Insurance etc.)
- Business Succession Planning
In summary, we are so much more than just tax accountants. We are business and profit builders who strive to deliver practical, cost effective advice that could give you a serious competitive edge in the recruitment industry.
Over the years recruitment agencies have become a niche area within our firm. If you're a committed and ambitious business owner looking to accelerate your success we invite you to book a FREE, one hour introductory consultation to discuss your business needs. You can expect an hour of practical business, tax, marketing and financial advice that could have a profound effect on your future business profits. To book a time, contact us today and let's get to work on your business so it's more profitable, valuable and saleable.