Every business in every sector faces accounting challenges and are impacted by changes in global and domestic business confidence. However, businesses operating in the recruitment industry will always be one of the first to feel the impact, making it necessary for businesses to aim to protect their business value and future proof themselves against the risks as much as possible.
However, this isn’t an easy thing to do; there are constant demands to recruit with greater accuracy, pace, productivity and effectiveness and to evolve new business models and income streams to stay ahead of the growing competition.
One of the key accounting challenges the recruitment industry is facing is the uncertainty over the Brexit deal and the impact the terms agreed when the UK leaves the EU will have. The unknown implications, which could include a potential loss of EU workers and access to the single market, are making it very difficult for businesses to financially plan for the future with any degree of accuracy.
The introduction of IR35 in the public sector and the real likelihood of it being extended to the private sector very soon has placed a real burden on accounting and administrative functions within recruitment agencies and has resulted in the need to employ more specialised, highly in demand and expensive staff.
Another significant challenge facing accounting teams within the recruitment industry is the constant new levels of regulation and compliance demands, especially in the areas of payroll and tax.
Staying on top of legislative and regulation changes by the HMRC is not an easy undertaking and it constantly places a heavy weight of responsibility on in-house accounting teams and many businesses have been forced to employ more and more in-house experts and upgrade technology to ensure compliance.
The last year has also seen the need for recruitment businesses to comply with GDPR or face significant fines and has made it necessary for accounting teams to update existing processes and fundamentally change how they gather, manage, process, store and secure candidate data. This has caused significant disruption and cost for all recruitment businesses but especially for the smaller and mid-size ones.
There is certainly no doubt that the accounting teams with the recruitment industry are being kept on their toes and the challenges they face have led many business owners to ask themselves: What is the best way to deliver this service to the business?
Outsource your Accounting Functions the right way
For many businesses within the recruitment industry the best choice has been to partner with a specialist offshore accounting partner as it offers improved process efficiency, significantly reduced operating costs and much high levels of accuracy and compliance. Which all lead to better peace of mind and freed up in-house time which can be better utilised elsewhere, such as growing the business.
By outsourcing the accounting process of a recruitment business, the benefits are more than just freeing up time and include:
- You gain a team of experts – even if you can find the right in-house recruitment accounting specialists, you still will only have access to a small team. By partnering with an offshore accounting partner their large team of highly experienced and qualified experts become your team.
- You gain flexibility and scalability – partnering with an offshore accounting partner offers a business the opportunity to expand and grow at their own pace by having instant access to a dedicated team that can grow or reduce overnight.
- You gain access to the latest technology and infrastructure – your offshore accounting partner will handle such large volumes of accounting work that they will always need to invest in the latest technology and infrastructure.
- Your compliance management will improve – your offshore accounting partner will stay on top of HMRC legislation and regulations and all compliance demands, so you don’t have to.
- Cost reduction – the right offshore accounting partner will help you reduce your accounting costs by up to 50% in a very short period of time, without compromising accuracy or quality.
The simple truth is the business of recruitment is always going to be constantly changing and demanding and in order for any business to survive and indeed thrive they need to focus on what they do best and leave the other tasks to the experts in that field.
IMS People Possible have set their foot firmly in the offshore accounting solutions space for businesses and recruitment agencies. Our wide range of accountancy services keep your business flexible, scalable and at the cutting edge of technology and compliance, all whilst providing significant on-going cost savings.
Working with IMS People Possible will always give you the reassurance of a company that constantly measures and monitors its own quality, accuracy and compliance, ensuring you always receive the best possible service at all times. If you are looking for these services, send us a line on info@imspeople.com
