Should Bookkeepers Offer Accounts Payable And Receivable Services?

Key takeaways

• Offer AP and AR management as a billable service your clients already want.
• Use bill pay and invoicing software that syncs with your accounting tools to save hours.
• Price the service as a clear add-on based on the time it takes and the value it delivers.
• Grow your practice by handling vendor payments, including mailed checks, without the busywork.

What is accounts payable management?

Offering accounts payable management services means you’ll:

• Pay your clients’ vendor and supplier invoices and check that each one is accurate.

• Schedule bills so they are paid on time, not too early and not too late, to protect cash flow.

• Record all invoices and payments in the books.

• Build payment approval workflows to keep oversight and control over every payment.

What is accounts receivable management?

Offering accounts receivable management means you’ll:

• Invoice your clients’ customers.

• Follow up on overdue payments so customers pay on time.

• Update the payments in the books.

• Advise on payment terms and cash flow management.

Should bookkeepers offer accounts payable and receivable services?

Yes, bookkeepers should offer AP and AR services. You already handle the books, so adding payments is a natural next step.

Your clients want it, it opens a new revenue stream, and the right software makes it quick to deliver. The sections below show why it is worth it and how to do it well.

What’s in it for you and your clients?

Offering AP and AR management adds a billable service your clients already want. Most small business owners lack the time or expertise to manage it well, which is exactly where you add value.

As a result, they’re either fumbling with their AP and AR, procrastinating with bill payments, missing due dates, or just being ineffective in their bill pay management.

Small business owners want their bookkeeper to take financial tasks off their plate. According to OnPay, 37% of small businesses expect their accountant to help with accounts payable and receivable. If you offer this service and charge for it, you generate a new revenue stream from your existing clients.

You’re already providing bookkeeping services, so you have the tools and the know-how. Adding services to your core activity takes little cost and effort, but provides a better client experience. By adding AP and AR management services to your core activity, you can be a one-stop-shop, covering more of your clients’ needs.

This competitive edge will help you stand out from other bookkeepers who only provide the basics to their clients. You’ll be able to recruit more clients, get referrals from your existing clients and grow your practice.

The accounts payable and receivable of a business impact its cash flow and financial health. Knowing how and when to pay the bills, choosing the best payment method, and flagging risky payment terms all require expertise and experience.

Doing this for your clients will make a real difference for their success. It’ll help their growth in good times, keep them afloat in rougher times and make them better prepared for tax season. They’ll notice the added value you bring to the table and thank you for it. And a happy client is the key to client retention.

The days of manual bill pay are disappearing. With the right online solution, you can manage AP and AR for multiple clients online, with only a fraction of the time it used to take in the past.

Melio helps bookkeepers manage AP and AR in one place:

• One dashboard for all your clients.

• Simple interface for fast payments.

• Accounting sync with QuickBooks Online, QuickBooks Desktop, Xero, and NetSuite.

Latitude Bookkeeping’s David Perry cut bill pay from up to 90 minutes to just 5 to 10 minutes per client with Melio, about a 90% reduction. That frees hours to serve more clients.

How to offer AP and AR services efficiently

You can offer AP and AR without adding hours to your week. The trick is to lean on software instead of manual work.

How to price your AP and AR services

Price AP and AR as a clear add-on to your bookkeeping fees. You can charge a flat monthly rate per client or tie the fee to the number of bills and invoices you handle.

Start by tracking how long the work takes with your software in place. Then set a price that reflects the value and the time you save your clients.

Handle vendor checks without the busywork

One of the most time-consuming chores for bookkeepers is handling checks for their clients. Melio can rid you of it, once and for all: you can schedule an online payment with any payment method your client prefers, such as ACH, debit, or credit card, and the vendor will still get paid with a paper check that Melio mails on your behalf.

When you don’t have to spend time cutting checks and reconciling accounts, you’ll be able to add AP and AR management to your firm’s services and boost your growth. If you want to learn more about Melio’s service built for bookkeepers, you can explore it here.

Grow your practice with AP and AR services

Adding AP and AR management helps you serve more of your clients’ needs and stand out from bookkeepers who only cover the basics. It is a simple way to grow your practice and deepen client relationships.

Ready to add AP and AR services without the busywork? Sign up for Melio and manage every client’s payments in one place.

Accounts payable and receivable FAQs