Neil Rogers is financial director for The Recruit Venture Group.
Neil has over 20 years of experience in accountancy and finance, and has worked specifically in the recruitment industry for 7 years. Neil heads up the financial side of Central Services at The Recruit Venture Group, and manages a team of over 25 staff.
Tell us a little more about you and your role within The Recruit Venture Group
As financial director for the business, I am the first point of contact for the banks and oversee the finance team. I am responsible with the financial governance of the group, incorporating financial reporting, tax, cash management, credit control and payroll.
What do you believe to be the biggest single financial issue facing a recruitment start up?
The biggest single financial issue for a start up is obtaining funding for the working capital of the business. A newly incorporated business may lack the capital capability or expertise in order to obtain the funding which it will require to fund it’s day to day operational costs.
Is cash flow still a major factor in running a recruitment business, especially a new one?
Yes cash is the biggest financial factor in any recruitment business, companies can make a profit but without converting that profit into cash can mean ultimately they don’t have a business.
What do you believe is top of the list for investing in when you’re a recruitment start up?
A good back-office team to manage and provide information on the financial side of the business. Many recruiters will be highly experienced in generating sales but not necessarily have the expertise or knowledge of running the back office. They won’t know how to manage their cash flow, nor how to submit their VAT returns or even general banking practice.
A good back office team will ensure your cash flow is managed by making sure your workers are paid, clients are correctly invoiced and they pay on time, statutory deadlines are met and your business has secured a line of credit with the banks before you need it.
What are the main financial benefits TRVG offers a recruitment start-up?
Through our long-standing relationships with the bank, we are able to secure 100% of the finance a recruiter needs to launch their own business without them having to invest a single penny themselves.
Cash Flow Management
We will manage the cash flow function of their business on a daily basis, preparing regular reports and financial projections to ensure they are fully informed at all times as to how their business is performing.
We will support the recruiter with their VAT and PAYE registration and help generate their terms of business for their clients and workers.
Our payroll team process the payroll function of their business, ensuring their temps are paid weekly and all relevant deductions, such as holiday pay, SMP, SPP and SSP, are correctly calculated and paid over on time to HMRC.
Our Credit Control team will manage the invoicing of clients and collect payments in accordance with the agreed payment terms.
We train the recruiter from the outset on how to generate weekly financial reports providing complete transparency as to how their business is performing. Every four weeks, we will provide the owner with a detailed profit and loss account and balance sheet. We will work with the business to produce annual budgets, and liaise with the auditors to produce year end statutory accounts.
We can also assist with KPI reports which can be tailored to the needs of the business.
Ultimately we are seen as an extension to their team. We never tell them how to run their business, we simply advise and manage the flow of their cash to ensure they remain stable.