A shift to the hybrid working model, widespread labor and skills shortage, and the lack of qualified candidates have put staffing agencies and recruitment companies under enormous pressure. Staffing and recruiting agencies need to focus on their core business tasks in order to stay competitive and profitable. Many staffing agencies are now outsourcing finance and accounting processes to reduce overhead costs and improve process efficiency.
Staffing agencies still spending money on an in-house accounting team may be missing out on the benefits of outsourcing the F&A process. According to research, 38% of businesses outsource their accounting processes for expertise and cost savings.
Here is a list of the seven most common finance and accounting processes your staffing agency can outsource to improve their business’s service delivery capability.
7 Finance & Accounting Processes Recruitment Agencies Can Outsource
Payroll management is a substantial challenge for staffing firms that cater to permanent, temporary, contractual, or locum workers across different geographies and industries. The constantly evolving filing guidelines, government regulations, and compliance procedures make payroll management a time-consuming and challenging business process for recruitment agencies.
Outsourcing is a great way to boost payroll management efficiency and handle high-volume payrolls and requests by staffing agencies. Payroll outsourcing services can help streamline the process and reduce the company’s overhead costs while saving time.
Pay & Bill
The outsourced pay and bill process allows your recruitment agency to reduce operational costs while using the latest fintech and streamlining this critical finance and accounting function. Outsourcing optimizes the process efficiency and ensures strict compliance with all regulatory laws.
Intelligent automation of the pay & bill process is crucial for avoiding repetitive tasks, ensuring compliance with the changing filing requirements, and providing a positive candidate experience. Working with reliable outsourcing partners like the QX Global Group can streamline your agency’s accounting processes, improve accuracy, reduce costs, save time, and produce customized reports.
Handling books and maintaining records can take a lot of time for the in-house accounting team. Bookkeeping is a time-intensive and costly practice for staffing firms that diverts the company’s resources and employees from core business functions. The best way to improve the efficiency of your agency’s bookkeeping process is to partner with an offshore RPO service provider for fiancé and accounting process outsourcing. Outsourcing F&A processes extend the in-house accounting team helping businesses grow and mitigate financial risks.
The credit-control process is critical for a business to maintain its cash flow and mitigate bad debts. Recruitment agencies catering to high volume staffing demands may struggle to function proficiently and need efficient financial controls. Good credit controllers may be hard to find, and hiring them in-house may be expensive.
Outsourcing credit control processes to trusted recruitment outsourcing companies can minimize a staffing agency’s overhead costs. Outsourcing also allows you to work closely with a team of financial experts with the experience and training to keep your business financially sound in the long run.
Management accounts are essential financial processes that help businesses gain insightful information about a company’s work and aid strategy development. Clear, easy-to-read, customized financial reports enable business leaders to make informed decisions. However, preparing these reports takes a lot of time, effort, and expertise.
Outsource this back-office process to offshore management accounting consultants who provide specialist recruitment process outsourcing services.
Recruitment agencies handling high volume staffing must follow extensive accounts payable process and documentation. This can be tiresome, expensive, and time-consuming. Agencies must process high-volume invoices, deal with hundreds of vendors and clients, and meet the everchanging regulatory compliance requirements.
Therefore, outsourcing accounts payable is a great way to streamline the process and avoid discrepancies and inefficiency in the organization.
Time and Expense Management
Outsourcing back-office administrative tasks such as time and expense sheet management to offshore RPO experts in India or other delivery centers can help increase staffing companies’ process efficiency and speed. Outsourcing recruitment companies are equipped with the latest technology. And follow automated processes to maintain greater accuracy and speed and perform these functions at a significantly lower cost.
Finance & Accounting Outsourcing Services for Staffing Agencies
QX Global Group’s outsourced back-office recruitment services will take care of your finance and accounting processes that are non-revenue generating tasks yet critical to the smooth functioning of your business.