Overview

A growing technical recruiting agency needed a finance function that could keep pace with an expanding team, fluctuating placement volumes, and complex commission structures. We stepped in as the outsourced finance lead, building the reporting infrastructure and cash flow visibility the business lacked.

Challenge

The agency had limited visibility into which recruiters and placements were actually profitable after commissions. Cash flow was unpredictable due to timing gaps between placement billing, collections, and commission payouts. Financial reporting was inconsistent, making it difficult to evaluate hiring decisions or plan ahead with confidence.

Solution

We took over day-to-day accounting operations on an accrual basis and built a monthly financial package including placement-level margin tracking, recruiter performance analysis, and commission payout alignment. We implemented a rolling cash flow forecast tied to the AR/AP cycle and developed break-even modeling to quantify how many placements per month — and per recruiter — the business needs to cover its fixed cost base.

Results

Clear, monthly visibility into gross margin by recruiter and by placement, with a reliable forecast around commission payouts and collections timing. Hiring and scaling decisions are now grounded in financial data rather than gut feel, with a defined production threshold the team can manage against.

Outcome

The agency shifted from reactive decision-making to planning ahead — understanding exactly what production levels are needed to sustain growth and when to invest in additional capacity.