Staffing Agency monthly financial report
A staffing report should show margin per hour and days to collect side by side. One decides profit, the other decides cash.
The six numbers for a staffing agency
| Number | How to work it out | What it warns you about |
|---|---|---|
| Gross margin per hour billed | (Bill rate − pay, taxes, comp) per hour | Markups slipping on new orders |
| Days to collect | What clients owe ÷ monthly revenue × 30 | The gap you finance |
| Factoring or funding line used | Balance drawn | How much of the gap is borrowed |
| Taxes and comp per hour | Payroll taxes + workers' comp ÷ hours paid | Rates rising on new job types |
| Largest client, share of revenue | Their billing ÷ revenue | Concentration risk |
| Weeks of payroll in the bank | Cash ÷ weekly payroll | How long you could carry a late client |
Use these six in place of the general ones on the template's Report tab.
What to watch in a staffing agency
- Clients stretching payment past 45 days
- Factoring fees eating margin
- Workers' comp rates on new job types
Not sure how much cash you should hold? Use the staffing agency cash calculator.
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