Helping recruitment agencies up their game

How accountants can make a difference to recruitment agencies

Because we understand the sector, care about what it does, and provide services that help recruiters up their game? Below, Andy tells us why the recruitment agencies sector is so important, and how the right kind of accountant can make a major difference.

You’re building up quite a specialism in recruitment firm accountancy. What’s the story?

Before I joined THP, I used to be responsible for audit at a major London PLC. Many of our clients were boutique recruitment firms, and I enjoyed working with them. I liked their entrepreneurship, and I was impressed by the fresh approach many of them had. I also got to know the sector very well.

Once I had joined THP,  it made sense to tap into that enthusiasm; I believe we’re the one accountancy firm that has a lot extra to offer.

What’s the ‘extra’ you can offer recruitment firms when it comes to accountancy?

Apart from my interest in the sector, there’s a lot THP brings to the table. We’ve got the expertise that comes with being a top accountancy firm, but our smaller size and flexible structure means that we’re very hands on and have a more personal approach.

In my experience, up-and-coming recruitment agencies prefer to work with accountancy practices that like to get closely involved, offer something a bit different and are likely to be there for the long haul. It’s a case of recruiters wanting an accountancy partner that will grow with their business.

So they’re looking for quality accountants who are ‘people people’?

Yes, that’s exactly it. When you’re growing a recruitment business, you want accountancy experts that aren’t stuffy, understand where you’re coming from, and who you can ring at any time of day – or night. You need accountants that don’t watch the clock and are willing to give you honest, practical advice when you need it.

What kind of advice do you mean?

Often it’s help with running a business. Many recruitment firms are set up by people who worked for large recruiters, but then struck out on their own. They have the contacts, industry knowledge and skills to make a real dent in their market, but they might not have the experience of running a business.

That’s where we can help. We offer them much more than standard compliance accounting, and will work closely with them to grow their businesses. We even arrange seminars and networking sessions to help them develop ideas and new contacts.

What about your knowledge of the recruitment agencies sector? Is it really that important?

Yes, I think it is. The recruitment agencies sector is facing some interesting challenges at the moment. Bigger companies are increasingly bringing recruitment in-house, and that’s forcing agencies to up their game. At the same time, recruitment is becoming an easier market to enter – the web, social media and other networks simplify the process of finding candidates.

That means agenices need to be much more strategic, expert and specialist if they’re going to succeed. We bring an inside view of that process to the accountancy work we offer them.

You say specialism is important. What are the growth niches in recruitment agencies?

When it comes to our clients, we’re working increasingly with companies that specialise in IT and Technology recruitment. Firms in this area particularly demand professional, friendly accountants who give value for money and put their hearts and souls into their work. It fits with the ethos – and the results they want to achieve.

And because there’s a lot of money to be made, they’re also looking for accountants who can take their business from cradle to grave – or rather from start-up to multimillion-pound sale or flotation!

So what are the actual services you offer the recruitment agencies sector?

It’s everything. From bookkeeping to business advice, audits to mergers and takeovers, management accounts to tax advice. Because we’ve got specialists across our network of offices, we can always fit the right expert to a client’s specific needs – while maintaining their relationship with a client manager on a day-to-day basis.

Sounds great Andy. So how can recruitment agencies find you?

I am located at our head office in Wanstead London E11. If you’re a recruiter and you’re in need of an accountant who really understands your sector, why not give me a call on 0208 989 5147 or email me at ag@thp.co.uk ? You can find out more about us here: THP Wanstead Office.