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Due diligenceExpert answer · 1 min read

What should I check about a staffing agency’s timesheet and approval process?

Follow one worker’s hours from entry to invoice. Check who records them, who at the client approves them, how disputes and corrections are handled, and how approved hours become both a bill and a payroll run. Weak approval steps lead to unpaid work, billing disputes and payroll errors.

Pick a handful of workers across different clients and ask for their timesheets, the approvals and the matching invoices and pay records. Trace each from start to end. The entries should line up, and any differences should have a written reason.

Look at the approval step. Does the client sign off every time, or does the agency assume approval after a while? Ask how missing approvals are chased and how long they stay open. Late approvals can leave the agency paying workers before it is paid. Ask about special cases, like overtime, missed breaks, holiday pay and workers moved between clients mid-week. Rules that exist only in someone’s memory tend to produce the errors that appear on invoices.

Ask about corrections. How are errors fixed, who can change an entry and is there a record of changes? A process that lets anyone edit hours without trace is a risk. Ask whether any billing disputes stand open now. Look at the tools in use and who knows how to run them. If only one person understands the process, plan for their absence. Your accountant should review how hours flow into receivables and payroll, and your lawyer should read client terms on approval and payment.

Key takeaways

  • Trace several workers’ hours from entry through approval to invoice and pay.
  • Ask how late approvals and corrections are handled and recorded.
  • Find out whether one person alone understands the process.

Sources

This answer is checked against primary sources. Links were last confirmed on the dates shown.

  1. 01
    Business Development Bank of CanadaGovernment
    How to conduct due diligence when buying a business
    bdc.ca·Checked Oct 21, 2026
  2. 02
    Business Development Bank of CanadaGovernment
    What are the steps to buying a business?
    bdc.ca·Checked Oct 21, 2026

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