Staffing, recruiting & HR services
Books and taxes for contingency recruiting agencies.
No-placement-no-fee searches, a guarantee window on every closed role, recruiter commission splits, and job board costs that pile up whether a search fills or not. Gus sorts it, an accountant checks every transaction, and you get one number a month.
- From $197 a month
- An accountant on every transaction
- Cancel whenever
March came in at $23,900. Three placements closed but one is still inside its 60-day guarantee, so I kept that fee apart from what's fully earned.
- Danforth Logistics placement feePlacement fees
- Colby Retail placement feePlacement fees
- Recruiter commission payoutRecruiter commissions
- Indeed and ZipRecruiterJob board costs
- Bullhorn subscriptionATS software
Why your books are different
Contingency recruiting books go wrong in the same four places.
A generalist sees a placement fee land and calls the month closed. Your business runs on searches that go nowhere until one suddenly does, a guarantee window on every fee you do collect, and recruiter commissions tied to margin, not just headcount. When the books don't know that, the month looks better or worse than it actually was.
-
1
A placement fee gets counted before the guarantee runs out
Most contingency placements carry a 30 to 90 day guarantee where a refund or free replacement is owed if the hire doesn't stick. Counting the whole fee as kept income the day it's invoiced overstates what the firm might actually end up keeping.
What we doFlags fees still inside a guarantee period so the reported number doesn't count money that could still come back out. -
2
Sourcing costs run whether or not a search fills
Job board postings, resume database access, and recruiter time go out on every open search, filled or not. Buried in general overhead, you lose sight of what it actually costs to run a search that never closes.
What we doKeeps sourcing and job board costs in their own line so cost per fill is visible, not just cost per hour worked. -
3
Recruiter commissions get paid on the invoice, not the margin
A recruiter paid a flat percentage of the invoiced fee looks the same whether the placement was a quick, low-effort fill or a six-month grind. If commission structure isn't tied to actual margin, the firm can pay out more than a hard search was worth.
What we doKeeps commission payouts tracked against each placement's fee so you can see what a search actually cost to close. -
4
Multiple recruiters racing the same req blur the numbers
Contingency work often means several recruiters, sometimes at different firms, chasing the same open role. When one fills it, the others' sourcing time and cost show up as pure loss if nobody tracks it that way.
What we doFlags sourcing spend on searches that didn't close so the real cost of the win rate is visible, not just the wins themselves.
Your categories
The categories Gus keeps for a contingency recruiting agency.
Set up once for fee-only, no-placement-no-fee work. You never pick a category. He does, and an accountant checks it.
Money in
- Placement feesA percentage of first-year salary, earned only when a candidate is placed and starts.
- Guarantee-held feesPortions of a placement fee still inside a replacement guarantee, kept apart from fully earned income.
- Rush search premiumsHigher fees for urgent roles with a short fill window.
- Referral feesSmaller fees earned for referring a candidate or a search to another firm or contact.
Money out
- Recruiter commissionsPayouts tied to closed placements, often a share of the fee earned.
- Job board and sourcing costsIndeed, ZipRecruiter, and resume database access run on every open search.
- Applicant tracking softwareBullhorn, Crelate, or a similar system running requisitions and candidate pipelines.
- Background checksScreening fees for candidates who reach final stages.
- Professional liability insuranceCoverage for the advisory nature of placement work.
- Office overheadPhone, internet, and administrative support for the recruiting team.
What we watch for you
- Fees still in guarantee
Closed placements whose refund window hasn't lapsed yet, so a good month doesn't get spent before it's actually settled.
- Cost per closed search
Sourcing spend across both wins and searches that never filled, divided by placements made.
- Fill rate
Searches closed against searches opened. A dropping number often means sourcing needs to widen or pricing needs a look.
- The set-aside
What you'll owe on fees that have actually cleared their guarantee, tracked every month.
Ask Gus
Things contingency recruiting owners ask Gus.
Text him like you would text anybody. He answers in plain English, and when a question is above his pay grade, an accountant looks and gets back to you.
Almost. It's got about three weeks left on its 60-day guarantee. I'm holding it apart until that window closes so the number doesn't overstate what's actually settled.
Not lost, but real cost. The job board spend on the three that didn't fill is tracked against the one that did, so you can see what a win actually costs you.
Commissions ran about 42 percent of fees collected this quarter. I keep that tracked by placement so you can see it against what each search actually brought in.
The tax side
The tax side of a contingency recruiting agency.
Most of what goes wrong here is timing and recruiter pay structure. A fee counted before it's earned, and a commission that isn't tied to what a search actually cost.
What your return has to get right
Your accountant signs it, so it gets done right the first time.
- Revenue timing on guaranteed placementsA placement fee should be tracked against its guarantee period rather than counted as fully kept the day it's invoiced, so the monthly number reflects what's actually settled.
- Worker classification for recruitersA recruiter working set hours under your direction is usually a W-2 employee. A recruiter running their own desk with their own clients and schedule may be a legitimate 1099 contractor, but the details matter.
- Form 1099-NEC for referral and split feesAny outside recruiter or contact paid $2,000 or more in 2026 for a referral or split fee who isn't on payroll gets a 1099-NEC by January 31.
- The pass-through deductionMost owners can take up to 20 percent of business profit off their taxable income, a benefit that lands right only when guarantee-held fees aren't counted as kept income before they've cleared.
Deductions contingency recruiting agencies miss
Your bookkeeper knows what to look for in your statements. You never have to.
- Applicant tracking software
- Job board postings and resume database access
- Background check fees
- Professional liability insurance
- Recruiter commission and bonus payouts
- Trade association dues
- Phone and laptop for recruiters
- Home office costs for remote recruiters
- Continuing education for recruiting staff
- Card processing fees on client payments
- Referral bonuses for candidate or client leads
- Recruiter travel to client meetings
General information about 2026 federal rules, not advice for your business. Your accountant looks at your actual numbers before anything gets filed.
All year, not just April
A contingency recruiting year, kept every month.
Searches close on their own timeline and guarantees stretch well past the invoice date. Your team keeps track of both, all year. Every month in between, your bookkeeper closes the books and speaks up the moment something looks off.
- January
Open the pipeline and the books
Last year's return gets started, any referral or split 1099s go out, and a monthly set-aside begins so April doesn't depend on which searches happened to close.
- April
Filed without slowing the desk
Your return is filed and signed while searches keep moving. No surprise bill, since the set-aside has been building since January.
- July
Fill rate at the midpoint
Where fill rate and cost per closed search stand at the midpoint, and what you'll actually owe.
- October
Before year-end pushes
Many clients try to fill roles before budgets reset. Gus looks at guarantee-held fees and pipeline before the year closes out.
What you get
What you pay depends on what your business needs, and it does not move after that, busy season or slow. No hourly bills, no surprise invoices, no setup fee.
Book a call- Monthly bookkeeping
Every transaction sorted into categories set up for contingency recruiting agencies. You never categorize a thing.
- An accountant checks every transaction
Real review, every month, before your books close. Not a spot check.
- Your business tax return, filed
Prepared, reviewed, and signed by that same accountant every year.
- The monthly number
What you made, what you spent, what to set aside for taxes.
- Your own bookkeeper
A real person assigned to your business, in the app whenever you need them. No hold music.
- On your books all year
Every month, not just in April. Your team speaks up whenever something is worth your attention.
- Cancel any time
No contract. No cancellation call. Your books are yours.
Straight answers
Questions contingency recruiting owners ask first.
Should a placement fee count as income the moment it's invoiced?
Not fully. Gus tracks the guarantee window on every placement, so the fee is flagged until it clears and the number reported reflects what's actually settled.
We have several searches open that haven't filled. Does that spending get lost?
No. Gus keeps sourcing and job board costs visible against placements made, so the true cost of a fill, including the searches that didn't close, stays in view.
Some of our recruiters run their own desk almost independently. Does that change how they're paid?
It might. A recruiter with real independence over schedule and clients could be a legitimate 1099 contractor, but one working your hours under your direction is usually an employee. Gus flags the situation so the accountant can review it.
How does Gus track recruiter commissions?
Each commission gets tied to the placement it came from, so you can see what a search actually cost to close, not just a flat payroll number.
Do referral fees to outside contacts need a 1099?
If they're not on your payroll and get $2,000 or more from you this year, yes. Gus keeps that list current so it's ready by January 31.
Our books are behind after a slow quarter with few closes. Can we catch up?
Yes. Send the bank statements and placement records you have. Gus sorts out what's earned versus still in guarantee, and most owners know where they stand within a week.
Is a real accountant checking my books?
Yes. You get your own bookkeeper, Gus does the first pass on every transaction, and an accountant checks every one before your month closes. That same accountant prepares, signs, and files your business return. Goatkeeper is not a CPA firm, and we never pretend a person looked when they did not.
What does it cost, and can I cancel?
It starts at $197 a month, depending on what your business needs. No setup fee, no hourly bills, no contract. Cancel any time from the app, and your books go with you.
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What makes a bookkeeper worth paying for Every business we keep books for
Book a call
Pick a time. That's the whole signup.
Fifteen minutes with a real person on our team. They look at where your books are, tell you straight what it takes to get caught up, and get you set up on the spot if it fits.
- $197 a month to start
- An accountant on every transaction
- Cancel whenever