The Accounting Department Blog

Do your people really have the right skills to manage your cashflow?

Your people are your greatest asset if you are the owner of a recruitment on-hire business, and it is absolutely critical that they are paid on-time, every time. The last thing you want to do is get the balance wrong and miss your payroll deadline. As a business owner, you must have the confidence that your people can cope with rapid growth as a result of landing a big contract. 

Not many businesses can grow from 2 employees to 50 in a matter of days. Managing the cashflow requirements of a workforce that fluctuates in number week in, week out, can be extremely challenging, and you may often find yourself treading a delicate line between receiving funding and paying the payroll. At an absolute minimum, until your annual turnover is more than $2 million your business will require at least a bookkeeper and payroll officer. If your business places a lot of temps requiring day-to-day compliance and cashflow management, and/or your annual turnover is $5 million or more, you should also employ a dedicated financial controller. 

Getting the right people to fill these positions can be difficult. There is a great difference between getting an average bookkeeper and payroll officer, and getting experts who provide value-adding services and proactively maximise your cashflow at all times, making a huge difference to your bottom line. Without a background in accounting for the recruitment on-hire industry, it can be difficult for a business owner to identify all of their accounting and payroll requirements and select the best person for the job. 

To ensure that your business is built for sustainable growth, you need to be proactive in getting the right support team in place BEFORE you reach the tipping point. You need to have the people behind the systems who fully understand the ins and outs of your payroll and invoicing requirements and can give you the peace of mind that everything is taken care of and that you are fully compliant at all times. 

Creating and maintaining a department capable of managing the end-to-end process of invoicing to payroll is extremely time-consuming for a business owner whose time could be better spent building relationships with new potential clients. 

For more information on how to ensure your team has the right skills to take care of your cashflow requirements, come along to the 2016 Recruitment Yarns Business Series where I will guide you through my Key Personnel Skills Recruitment Checklist and hopefully provide you with validation that you have the right team in place to take care of your business.

Recruitment Yarns kicks off in Perth next Wednesday 4 May, before moving on to Adelaide [6 May] and Brisbane [11 May], with other locations right around the country to follow in the coming weeks. Tickets are FREE and available at www.recruitmentyarns.com.au

Posted By: 
David Payne