Sector Specialism

Accountancy for IT Recruitment & Contractor Bookkeeping

Bookkeeping, weekly contractor and client invoicing reconciliation, payroll, VAT, and accounts preparation for IT recruitment agencies and contractor personal service companies. AAT Licensed Practice. Tier 3 and Tier 4 services.

Tier 3+4
AAT Licensed Practice
Weekly
Contractor invoicing cycle
VAT
Supply chain treatment
AAT
Qualified and licensed

Recruitment agencies and contractor PSCs need bookkeeping that survives the weekly invoice cycle - not a monthly-only model

IT recruitment finance moves on weekly cadence. Timesheets land each week, contractor invoices and umbrella payments cycle on tight calendars, and main contractors’ remittances arrive on their own schedule. A standard monthly bookkeeping model does not survive contact with this rhythm.

S.K.E. Accountancy works with IT recruitment agencies and contractor personal service companies on the bookkeeping, payroll, VAT, and accounts preparation that respects the weekly cycle. Factoring or invoice-discounting facilities, where used, are reflected in the ledger so that reported revenue and cash position tell honest, separate stories.

Working as an AAT Licensed Practice means we stay strictly inside the services we are licensed to provide. IR35 / off-payroll status determinations, self-assessment for contractors, and corporation tax for personal service companies are Tier 2 (tax) services not covered by our current licence - we will refer you to an appropriately licensed firm.

Where it recruitment and contractors businesses need bookkeeping that does the job - not just transactions

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Weekly Invoice & Timesheet Cycle

Timesheet data reconciled against contractor invoices and client invoices weekly. VAT treatment applied correctly at the point of invoicing, not corrected at quarter-end.

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VAT in the Supply Chain

VAT on agency margin, contractor invoices, and end-client payments structured correctly. Standard, flat-rate, and cash accounting scheme decisions advised based on the actual numbers.

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Payroll for Internal Staff

PAYE, NIC, and pensions auto-enrolment for agency consultants and back-office staff. Commission structures handled within the payroll, not run alongside it.

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Factoring & Invoice-Discounting

Factored receivables tracked separately from headline debtors so reported revenue, debtor days, and cash flow are not distorted - critical when reporting to investors or covenant-holders.

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PSC Bookkeeping

Contractor personal service companies bookkept with director salary, dividend records, and VAT (where applicable) maintained. Year-end statutory accounts prepared for Companies House filing.

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Year-End Statutory Accounts

Statutory accounts for the agency or PSC prepared from clean weekly records and filed with Companies House on time. Tax computations handled by your appointed tax adviser.

Bookkeeping & accounts - full service within Tier 3 + Tier 4 scope

One AAT Licensed Practice covers the bookkeeping, VAT, payroll, and accounts preparation that a it recruitment and contractors business needs day to day - without straying outside our licence.

  • Bookkeeping reconciled against weekly timesheet and invoice cycles
  • VAT registration and quarterly returns (standard, FRS, cash accounting)
  • Payroll for internal agency staff (PAYE, NIC, pensions)
  • Contractor PSC bookkeeping - salary, dividend, and expense records
  • Factoring / invoice-discounting ledger discipline
  • Management accounts on agency-aware cadence
  • Statutory accounts for agencies and PSCs
  • Companies House filings

Recruitment agencies and contractor PSCs

Whether you are a specialist IT recruitment agency placing contractors at scale, a contractor running through a personal service company, or a smaller agency without an in-house finance team, the underlying disciplines align - weekly-cycle bookkeeping, VAT done right, clean PSC records.

  • IT and tech recruitment agencies (perm + contract)
  • Specialist contractor desks (cloud, security, data)
  • Personal service companies (Ltd contractors)
  • Sole-trader contractors and freelancers
  • Agencies using factoring or invoice-discounting
  • Multi-jurisdictional contractor placements (bookkeeping side)

IT Recruitment & Contractors - frequently asked

Do you make IR35 / off-payroll status determinations?

No. Status determination is a tax-adjacent professional judgement and is not in our current AAT scope. We will refer you to an appropriately licensed firm. Our IR35 compendium is available as an informational product for in-house compliance teams.

Do you prepare contractor self-assessment returns or PSC corporation tax?

Not currently. Both are Tier 2 services under AAT and outside our current licence. We prepare the bookkeeping records and year-end accounts that your tax adviser uses to file the return.

How do you handle factoring on the accounts?

Factored receivables sit on the balance sheet separately from headline debtors, with the financing charge expensed correctly. Reported revenue, gross margin, and debtor days are not distorted by factoring - which is critical when reporting to lenders or investors.

Can you prepare my agency’s statutory accounts?

Yes. That is Tier 3 work under our AAT licence. Statutory accounts are filed with Companies House from the clean monthly records.

Can you take over from my current accountant mid-year?

Yes. We obtain professional clearance, integrate with your existing payroll provider and CRM / ATS, and pick up VAT and weekly reconciliations from the next cycle.

For general accountancy questions, see our main FAQ or browse the full Q&A library.

Recruitment-cycle bookkeeping. Weekly cadence. Within scope.

Book a free 30-minute discovery call. We will review your weekly cycle and give you a fixed monthly fee.

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