Appointing an Accountant early is crucial for new recruitment agencies, so read on if you want to find out how to get a 2-hour free consultation from an expert.
Launching a new recruitment agency is an exciting but complex endeavour. From branding and business development to compliance and client acquisition, the to-do list can feel endless. Amidst the hustle, one task often slips down the list: appointing an accountant. However, overlooking this key decision early on can lead to costly oversights that impact growth, profitability, and compliance.
In this post, I’ll explain why appointing an accountant should be a priority, what to look for in the right one, and why recruitment-specific accountants deliver better value than generalists.
When setting up shop, many directors focus on sales, candidate pipelines, or branding, understandably so. But financial management is the backbone of any business, and without it, those other efforts may not yield sustainable success.
Often, the appointment of an accountant is treated as a compliance necessity, something to handle after the agency starts trading. This reactive approach is risky. By the time accounting is considered, critical decisions may already have been made, and correcting them can be both time-consuming and expensive.
Worse still, many founders, especially first-time directors, select the cheapest available option, usually a generalist accountancy firm. While these firms may be competent, they often lack the industry-specific insights required to support the unique cash flow cycles, VAT nuances, and compliance issues faced by recruitment businesses.
The “butcher, baker, candlestick maker” model of generalist accountants may suit many types of small businesses, but it rarely serves recruitment agencies well.
Recruitment has its own ecosystem of financial considerations: contractor vs. permanent placements, umbrella company relationships, timesheet reconciliation, payroll advances, margin tracking, and more. Without a deep understanding of these dynamics, generalist accountants may miss opportunities or give generic advice that doesn’t align with industry practices.
Delaying the appointment of an accountant can result in:
Getting things right from day one puts your agency on stronger financial footing, increases profitability, and reduces future stress.
If your agency has multiple directors or shareholders, structuring ownership correctly is essential. A knowledgeable accountant can:
These decisions have long-term implications, so it’s best to get them right from the start.
Most recruitment agencies should register for VAT as soon as possible, even before generating revenue. This allows the business to:
Additionally, PAYE registration for directors’ salaries ensures compliance and enables the use of personal tax-free allowances efficiently.
Good habits start early. New agencies should:
An accountant can help set up a streamlined system to manage all this with minimal effort from the founder.
A great accountant does more than file returns — they act as a financial co-pilot.
Recruitment agencies should expect monthly or quarterly management accounts that offer:
Reviewing these reports regularly with an accountant helps keep the business agile and growth-oriented.
All of the above services are expected from a qualified accountant, but for recruitment agencies, it pays to choose a specialist.
Just as recruitment businesses thrive in niche markets, recruitment-specific accountants bring a wealth of tailored knowledge to the table, such as:
This advice isn’t just helpful — it can be transformative. A recruitment-specialist accountant understands the full lifecycle of a placement, from job order to invoice, and can guide you through the financial complexities that come with it.
At MAYACHI, they partner with a curated network of recruitment-specific back-office and accountancy providers. Their goal is to ensure that:
Financial clarity and compliance shouldn’t be an afterthought, they should be baked into your agency’s DNA from the start. They help make that happen.
If you want 2 hours free consultation time from Mayachi, then mention Giig Hire or drop me a message and I will put you in touch with Stewart.
Launching a new recruitment agency without a dedicated accountant is like starting a journey without a map. You may reach your destination, but it will take longer, cost more, and be filled with unnecessary detours.
Appointing the right accountant early is not an expense; it’s an investment in your agency’s future. Choose wisely, and choose early.
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