5 common accounting problems that managed service providers too often try and ignore.
In our line of work helping managed service providers with eliminating accounts receivables backlogs, we’ve run across all sorts of horror stories. Often we’ve noticed it’s not the one crisis that causes our customers problems, but the ongoing seemingly insignificant rolling AR that gnaws away at the bottom line.
Do any of these issues sound familiar?
- Your customer claims he or she never saw the invoice: Ever hear this excuse, as to why you were not paid on time? It’s so frustrating to hear this, especially from the same customer, multiple times.We even heard of a customer once, tell us about how they lost their bill in a snowbank. Take a look at other treasures lost in random snowbanks here.
- You as an MSP fail to have have a payment process established: Many I.T. companies have a process that is disjointed as best. They manually run credit cards, every month. Or the MSP runs ACH, manually, through some sort of online bill pay software. Or the payment processing goes out via paper billing.Often times, the manual nature of this is not just running 5 or 6 credit cards through. It is dozens, if not hundreds. This process is mind-numbing sucks, if your MSP does not have a defined accounting process.
- Your IT company struggles with collections, leading to a steadily growing AR backlog: Having an accounting process that bills your MSP customers is one thing.Collecting on that payment is a another.Collecting payment as part of your MSP’s accounting process is critical.
- You think 60 days rolling accounts receivable is common, and therefore okay: If your utility bill does not get paid within 60 days, what happens? You get your lights shut off.If you fail to pay your mortgage in 60 days, what happens? You default.So why is it okay for your customers not to pay you when expected, according to the terms of they agreed to?The answer: it is NOT okay.
- You continue to invoice out of your CRM: Many of our MSP customers that use ConnectBooster to automate their accounting, are also professional services automation (PSA) customers.Some of the PSA software tools available are Autotask, ConnectWise or Tigerpaw. These PSA software companies have invoicing functionality built in to them. Many of the I.T. businesses we talk with do not utilize the invoicing and accounting functions of these PSA’s.If you are doing double duty and creating invoices in QuickBooks, then reconciling or creating invoices in your PSA software you are killing yourself by making more work. See how ConnectBooster can help.
You Are Not Alone
If your MSP has ever struggled with these accounting pain points, know that you are not alone.
We have put together a complimentary 6-part educational series, which provides you with practical advice you can implement today in order to combat these issues.
Visit www.connectbooster.com/getpaid/ to sign up for our 6-part educational series on how to get paid on time, every time.
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