Our guest blogger today is TBOS. Formed in 2009, TBOS have over a decade’s experience in helping new start-up and existing recruitment agencies with their outsourced back office needs.
Congratulations! You’ve successfully secured overseas talent for your client, but international recruitment means international invoicing. Does your recruitment agency have the means to invoice correctly and compliantly with the correct tax applied?
TBOS have listed the complexities of currency invoicing below and why having our team managing it, ensures you peace of mind on all your international placements moving forward.
Currency bank accounts set up
As standard, TBOS will set up the correct currency bank accounts for our clients prior to their international placement being made. As soon as they receive an opportunity, they are on the phone to our team with their specific requirements. Currency bank accounts usually take between 3-5 days to set up, but once they’re completed it’s all systems go. This avoids delayed invoices being sent and also deters unfavourable exchange rates.
Along with setting up the currency bank accounts, TBOS will complete the necessary tax registrations on our agency’s behalf. This avoids any double taxation or withholding of taxes, eliminating nasty surprises after the deal has been done.
Charge clients and pay contractors in the same currency
It’s highly recommended that agencies charge clients and pay contractors in the same currency to avoid any ongoing currency losses on the placement. TBOS has many years’ experience managing exchange rates for our clients so we understand that this can have a huge effect on their margins if the invoicing isn’t managed correctly.
Many agencies starting out in international recruitment may overlook the issue of securing funding for their placements.
Many invoice finance companies have strict guidelines on what they will fund, and unfortunately, their rules to overseas funding can be somewhat complex. They may fund some countries; however, this may only be in Euro or US dollars and you can end up paying a hefty premium for the service too. With TBOS, we have access to finance to over 170 countries in a range of currencies, with the added benefit of our team managing the finance to ensure it runs smoothly.
Convert currency to sterling only when needed
As a UK registered recruitment company, the profit generated from international placements will need to be converted at some point to sterling. TBOS manage our clients’ finances carefully and only convert the money when required to; this decreases huge currency losses for the agency.
Specialist overseas accountancy & compliance advice
Besides the complexities of managing currency invoicing, there is also the added benefit of having our specialist knowledge and advice on speed-dial. We can advise on compliance, taxation and contracts to ensure all overseas placements are processed correctly and compliantly.
Need some help with your international invoicing?
At present, TBOS support many of our clients making overseas placements to over 32 countries worldwide. We manage their timesheets, invoicing, finance and credit control efforts, which means they can focus on sales. Even if it’s just one contractor that needs processing, we have a solution that can help.
If you’re interested in our currency invoicing service or would like some more information on our pay-as-you-go plans, get in touch today, we’d love to hear from you.