How I Charge $2,500 Per Month For Bookkeeping 😱 AP + AR Management

Summary

Zach Pascarell shares insights on elevating bookkeeping services to charge over $2,000 per month. With a focus on QuickBooks Online expertise, he outlines his basic bookkeeping package, including transaction categorization, account reconciliation, and financial reporting. Zach then introduces 'cash management' as an advanced service, encompassing accounts payable and receivable management, offering hands-on bill payment and invoice generation, setting a foundation for higher-value bookkeeping services.

Takeaways

• 😀 Zach Pascarell is a bookkeeper who has been running his own business for four years and currently has over 60 clients.
• 💼 Zach makes more than $30,000 per month in recurring revenue from his bookkeeping services.
• 📚 Zach specializes in bookkeeping using QuickBooks Online, which allows him to be highly efficient and process a large volume of work.
• 📈 He charges more than $2,000 per month for his services by going beyond traditional bookkeeping and offering additional services like cash management.
• 🏦 Zach's basic package includes categorizing transactions, reconciling accounts, and generating financial reports using QuickBooks Online.
• 💳 Cash management involves managing clients' accounts payable and accounts receivable, which goes beyond standard bookkeeping services.
• 🔍 For accounts payable, Zach pays bills for clients using their money, requiring communication from the client about which bills need to be paid.
• 💼 Zach uses clients' business checking accounts to pay bills, either through direct deposit or by electronically mailing checks, depending on the vendor's setup.
• 📝 For accounts receivable, Zach handles sending invoices to customers and clients, using QuickBooks Online as a payment processor.
• 📆 QuickBooks can be set up to send automatic reminders for overdue invoices and can generate accounts receivable aging reports.
• 💰 Zach charges $500 for managing about 100 accounts payable per month and suggests a starting point of $5 per bill for pricing this service. For accounts receivable, he charges an additional $200 for sending about 15 invoices per month.

Q & A

What is the main focus of Zach Pascarell's bookkeeping business?

Zach Pascarell's bookkeeping business focuses on providing expert bookkeeping services using QuickBooks Online, with a specialization in the software and services offered rather than a specific industry niche.

How long has Zach been running his bookkeeping business?

Zach has been running his bookkeeping business for the past four years.

What is the significance of having over 60 bookkeeping clients for Zach's business?

Having over 60 bookkeeping clients signifies that Zach's business is well-established and successful, generating more than $30,000 per month in recurring revenue.

What is the basic package offered by Zach's bookkeeping services?

The basic package includes bookkeeping with QuickBooks Online, which involves categorizing transactions, reconciling accounts, and generating financial reports.

Why does Zach only offer bookkeeping services and not payroll or taxes?

Zach chooses to specialize only in bookkeeping services to maintain his expertise in the area and to be able to charge a premium for his specialized knowledge and efficiency.

What is the concept of 'cash management' as described by Zach?

'Cash management' refers to the service where Zach manages clients' accounts payable and receivable, which goes beyond traditional bookkeeping by dealing with transactions that haven't occurred yet.

How does Zach handle accounts payable for his clients?

Zach handles accounts payable by entering bills into QuickBooks Online in real-time, running an accounts payable aging detail report weekly, and paying the bills due within the next 7 days using the clients' business checking accounts.

What method does Zach use to pay bills on behalf of his clients?

Zach uses the clients' business checking accounts to pay bills, either through direct deposit or by electronically mailing checks, after obtaining approval from the clients.

How does Zach manage accounts receivable for his clients?

Zach manages accounts receivable by sending invoices to customers, setting up automatic reminders for due payments, and running accounts receivable aging reports to keep track of overdue invoices.

What are the additional services that Zach offers to justify charging more than $2,000 per month for bookkeeping?

The additional services include cash management, which encompasses handling accounts payable and receivable, and providing a high level of expertise and efficiency in using QuickBooks Online for bookkeeping tasks.

How does Zach price his cash management services for accounts payable and receivable?

Zach does not have a fixed pricing model but provides a starting point of approximately $5 per bill for accounts payable and $100 for handling about 10 invoices per month for accounts receivable, adjusting the price based on the volume of work.