Accounts Receivable Services & Accounts Payable Management

Professional accounts receivable services are the difference between a business that chases payments and one that collects them on time, every time. If you are spending hours creating invoices, following up on overdue accounts, entering vendor bills, and trying to figure out who owes you what, your accounts receivable management process is broken — and it is costing you real money.

At Steph's Books, our accounts receivable services and accounts payable management handle the entire cash flow cycle for professional services firms and small businesses. We create and send invoices, track payments, follow up on past-due balances, enter and schedule vendor bills, process payments, and deliver aging reports that give you complete visibility into your cash position. AR services for small business should not be an afterthought — they should be a system.

What Accounts Receivable Services Include

Accounts receivable management is more than sending invoices and hoping clients pay. It is a structured process that ensures every dollar owed to your business is tracked, followed up on, and collected. Here is what our AR services cover:

• Invoice creation and delivery — We create professional invoices in QuickBooks Online and send them to your clients on schedule. Whether you bill hourly, by project, on retainer, or on a recurring basis, we handle the invoicing workflow so nothing falls through the cracks.
• Payment tracking and application — Every payment received is matched to the correct invoice and applied in your accounting system. Partial payments, deposits, and retainer drawdowns are tracked accurately so your AR balance always reflects reality.
• Collections follow-up — Past-due invoices do not collect themselves. We send automated payment reminders at 7 days, 14 days, and 30 days past due. For significantly overdue accounts, we escalate with direct follow-up emails and calls on your behalf.
• Aging reports — We deliver AR aging reports weekly or monthly, broken down by 0-30, 31-60, 61-90, and 90+ day buckets. You always know exactly who owes you, how much, and how late they are.
• Credit memo and refund processing — When adjustments are needed — client credits, refunds, or write-offs — we process them cleanly so your books stay accurate and your client relationships stay intact.
• Recurring invoice automation — For clients on monthly retainers or subscription-based billing, we set up recurring invoices that generate and send automatically. Zero manual effort each month.

What Accounts Payable Management Includes

The other side of cash flow management is accounts payable — what you owe your vendors, contractors, and service providers. Poor AP management leads to late fees, damaged vendor relationships, and missed early-payment discounts. Here is what we handle:

• Bill entry and coding — Every vendor bill is entered into QuickBooks Online, coded to the correct expense category, and tagged to the appropriate project or department.
• Approval workflows — We set up a simple approval process: we enter the bill, you approve it (via email or QBO), and we schedule the payment. You stay in control without doing the data entry.
• Payment scheduling — Bills are paid on schedule — not too early (preserving cash) and never late (avoiding penalties). We optimize payment timing to maximize your working capital.
• Vendor management — We maintain clean vendor records, track W-9s for 1099 reporting, and ensure every contractor payment is properly classified.
• AP aging reports — Just like AR aging, we deliver AP aging reports so you know exactly what you owe, to whom, and when it is due.
• 1099 preparation — At year-end, we prepare and file 1099s for all contractors and vendors who meet the reporting threshold. No scrambling in January.

Why Accounts Receivable Management Matters for Small Business

For professional services firms, accounts receivable is often the largest asset on the balance sheet. A law firm with $200,000 in outstanding invoices cannot pay rent with receivables — it needs cash. AR services for small business exist to close the gap between billing and collecting.

Here is what poor accounts receivable management actually costs:

• Extended DSO (Days Sales Outstanding) — The average small business takes 45-60 days to collect payment. Professional services firms with no AR process often run 75-90 days. That gap represents tens of thousands of dollars in working capital locked up in unpaid invoices.
• Write-offs — Industry data shows that invoices over 90 days past due have a 30-40% chance of never being collected. Every invoice that ages past 90 days is money you are likely losing.
• Cash flow stress — When collections are inconsistent, you cannot predict cash flow. That means you cannot plan hiring, investment, or growth with confidence.
• Relationship damage — Ironically, not following up on invoices damages client relationships more than following up does. Clients respect businesses that have professional billing processes.

A structured accounts receivable management process — with consistent invoicing, automated reminders, and weekly aging reviews — typically reduces DSO by 15-25 days within the first 90 days.

AR Services for Small Business: How Our Process Works

Every business has a different billing cycle, client base, and payment structure. We customize our accounts receivable services to match your workflow, not the other way around.

Weekly AR cycle:
• Monday: New invoices created and sent for the prior week's completed work
• Wednesday: Payment applications — all received payments matched to invoices
• Friday: AR aging review — past-due accounts flagged for follow-up

Monthly AR deliverables:
• Complete AR aging report (0-30, 31-60, 61-90, 90+ days)
• Collections activity summary — who was contacted, what the status is
• Cash receipts report — total collected, by client and by payment method
• Bad debt recommendations — invoices we recommend writing off or escalating

This cadence means you never lose track of who owes you money. When a client hits 30 days past due, we are already on it — not waiting for you to notice.

Industry-Specific AR and AP Expertise

Different industries have different billing and payment patterns. Our accounts receivable services are tailored to the way your business actually operates:

• Law firms — Trust account disbursements, retainer billing, matter-based invoicing, and IOLTA compliance. Learn more
• Property management companies — Tenant rent collection, owner distributions, CAM billing, and security deposit tracking. Learn more
• Consulting and agencies — Project-based invoicing, retainer drawdowns, milestone billing, and contractor payable management
• Healthcare practices — Insurance reimbursement tracking, patient payment posting, and co-pay reconciliation
• Construction — Progress billing, retention tracking, change order invoicing, and subcontractor payables

How We Are Different from DIY AR Management

Most small business owners handle their own invoicing and bill pay until the volume becomes overwhelming. Here is why outsourcing accounts receivable management delivers better results:

• Consistency — We follow up on every past-due invoice, every time. Business owners get busy and let collections slide. We do not.
• Speed — Invoices go out within 24 hours of work completion, not two weeks later. Faster invoicing means faster payment.
• Professionalism — Collection follow-ups from a bookkeeping team carry a different tone than a frustrated owner chasing payment. It keeps the client relationship intact.
• Visibility — You get aging reports and cash flow projections that tell you exactly where your money is. No more guessing.

Pricing for Accounts Receivable and Payable Services

AR and AP management is included in our Growth and Premium bookkeeping packages, or available as a standalone service:

• Standalone AR management — Starting at $250/month for businesses with up to 50 invoices per month
• Standalone AP management — Starting at $200/month for businesses with up to 30 vendor bills per month
• Combined AR/AP — Starting at $400/month, or included in our Growth ($625/mo) and Premium ($1,000/mo) bookkeeping packages

Get an instant quote tailored to your business, or contact us for a free assessment.