Automated AP: Recruiters’ Solution to Contractors and Timesheet Management

In the digital age, the recruitment industry faces new challenges created by modern work styles. It has made aspects like contractor placement and timesheet management, to name just two, as important a service as recruitment itself. But Automated Accounts Payable systems are providing the easy-to-use, efficient solution needed to overcome these challenges.

Temporary contracts and work-from-home employment have become more popular, and recruiters are answering that demand with specialized contractor placement services. These services include elements that the recruitment industry formerly placed in the hands of employers – like timesheets and contractor payments.

The new challenge for recruiters is to stay on top of such details but when an agency has hundreds (or even thousands) of contractors on their books, that task becomes huge. Automated accounts payable is the only practical solution.

A Growing Recruitment Sector

The significance of contractor placement and timesheet management is acute. Recent research has confirmed that some 9,500 recruitment service providers in the UK are registering an annual turnover of more than £250,000, with the industry itself generating over £35 billion each year.

Moreover, the number of freelance workers registered in the UK has already reached 2 million and is increasing annually.

Recruitment agencies must now gather and process thousands of contractor invoices each month, manually inputting each one, validating them against recorded timesheets, then approved and finally paid.

Obviously, this process is very time consuming but it also involves huge volumes of invoices and associated documentation, which any manual accounts payable system can buckle under.  The right automated accounts payable system, however, can deal with such volumes with ease.

How Automated Accounts Payable Benefits Recruiters

Gathering contractor invoices automatically provide several benefits to the recruiters, from reducing costs and saving time to improving the quality of their contractor placement service.

    1. Reduced Data Entry

By switching to an automated accounts payable system, recruitment agencies can reduce their data entry volumes by as much as 90%. That frees up administrative staff to look attend to other key areas and greatly speeds up contractor invoice processing time.

    1. Automatic Timesheet Validation

With the necessary timesheet data extracted automatically, the details of submitted invoices can be validated practically immediately. It removes the need to check, confirm and sign off invoices, again greatly reducing the processing time.

    1. Reduced Errors

When dealing with high volumes of paperwork, manual systems sit at the mercy of human error. It’s not unheard of that invoices are duplicated, misfiled or even completely lost, creating unacceptable delays for contractors. Automated services all but eliminate the threat of human error, and offer a reliability that galvanizes trust.

    1. Assured Tax Compliance

A new tax proposal from the UK government has recommended that recruitment agencies take responsibility for identifying the correct contractor employment status and deducting the correct tax. They refer to ‘Off-Payroll Working’ as a problem sector, with millions of pounds lost to the exchequer annually.

Addressing the issue is expected to increase tax revenue by as much as £1.2bn lost by 2023. Automated Accounts Payable system offer greater accuracy in invoice processing, but also provides full visibility at every stage to ensure a clear audit trail, greater oversight and full tax compliance.

    1. Improved Contractor Services

Contractors expect the best quality placement service possible. By offering greater reliability, on-time invoice payment, assured accuracy and full tax compliance, a recruitment agency can do exactly that.

And with improved contractor placement services, recruiters are better placed to retain and attract the most valuably skilled contractors;  and in such a competitive market, that is a major bonus.


Kefron’s Automated Accounts Payable solution is a cloud-based platform with ISO 27001 Information Security accreditation for the management and automation of contractor invoice processing, and because it can work alongside existing finance and accounting software it brings only benefits and no upset to established administrative systems.

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At Kefron we see complexity and make it simple. Our business exists to improve how you manage your information, be it Document Management Services or digitisation of your information. We can make a real difference to your business. This is what drives us.

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