Knowledge is key.
When it comes to choosing a back-office finance partner to support your business, it’s important that whoever you choose has it by the bucket load when it comes to recruitment.
Outsauce have specialised in the recruitment sector for many years and have identified some common questions we get asked by both clients and prospects alike. We love to share learning here at Outsauce, so we have put together an FAQ style blog with the aim of answering these questions for everyone!
1. How long have Outsauce been trading?
Outsauce was created in 2001 by a team of Accountants and Recruiters specifically with the recruitment sector in mind. We have spent the last 15 years evolving with the market and staying ahead of the numerous legislative changes this sector has thrown at us!
2. What is your process for chasing invoices?
As part of our full back-office product, Outsauce provide a specialist credit control service. We have a dedicated team of credit controllers responsible purely for managing our client’s sales ledgers. As a client of Outsauce, you would be assigned a specific credit controller who would know your business and your debtors, with specific experience of your sector. We follow tailored chase cycles for each client and your debtors will be called, not just sent automated letters!
3. What is your success rate of recovering debt?
Outsauce provide support to multiple recruitment sectors. This can mean chasing IT debtors on immediate payment terms, or construction debtors on 60 days’ end of month. As a result of this, our average payment terms offered across our entire portfolio are 45 days, and our Days Sales Ledger Outstanding is currently at 46.3 days. We only had one insurance claim in 2016, which is impressive considering we chased over 3,500 debtors in the year!
4. Why do we need to have a Personal Guarantee when you oversee our debt?
The Personal Guarantee (PG) is your commitment to Outsauce that you will abide by the terms of our agreement and assist in the repayment of the Funds In Use position should we fail to recover debts from your debtor. This is a last case scenario. If you trade within insured limits and obtain signed timesheets for each placement, this will never be a consideration. Only in cases of fraud has a PG ever been called in, and it is to protect us in such circumstances.
5. We would like you to hold on to any VAT, is that possible?
We know how difficult it can be finding the VAT money at month end when all other payments such as staff pay, rent etc. are all due for payment. With this in mind, Outsauce reserve your VAT each week taking into account all VAT costs processed through the facility. We will also provide you with a VAT schedule making the VAT return process very simple. In line with your VAT quarter, we will release the relevant reserve into your availability so the funds are available to you to pay HMRC with no concerns around cash-flow.
6. Do you have an online system?
Yes, we have two, Candidate Manager and Cash Manager; both part of our Resauce system. Cash Manager provides our clients with an overview of their facility, and allows them to request funds 24/7. It is also a comprehensive reporting system which can be personally tailored as you require. Candidate Manager provides our clients with a candidate database, in addition to an online timesheet system. Your candidates can enter their hours, and your debtors can authorise the timesheets with limited administration required by you. Candidate payslips, reports and invoices are all available online and who sees what is under your control. When you become a client of Outsauce we provide a comprehensive user guide and full system training!
7. How long does it take to put a facility in place?
As quickly as you need it! Our aim is to meet your requirements. The initial step is for you to speak to a member of our Sales Team so we can establish what product best meets your needs. If you sign up to our Principal product, your facility can be available within 48 hours. The standard turnaround time from first contact to a live facility being in place with full funding is between 1-2 weeks (this assumes clear searches on the business and Directors).
These are just a few of the common questions we get asked and we will be sharing more with you over the next few months. If you have anything specific you’d like to know about Outsauce or our products, please get in touch and I’d be happy to include this within our next blog!