https://mspmargin.com/ Managed IT, by the numbers. The finance and operations side of managed IT providers.en-us https://mspmargin.com/articles/news-microsoft-csp-october-update/https://mspmargin.com/articles/news-microsoft-csp-october-update/ Tue, 13 Oct 2026 12:00:00 +0000Pax8's October briefing covers a 5% uplift on monthly-billed annual software terms and a December switch to usage-based billing for new Copilot Business licenses. https://mspmargin.com/articles/news-td-synnex-bluestar/https://mspmargin.com/articles/news-td-synnex-bluestar/ Thu, 08 Oct 2026 12:00:00 +0000The distributor signed a definitive agreement to buy BlueStar, a specialist in data capture, point-of-sale, RFID and related technologies, pending regulatory approval. https://mspmargin.com/articles/news-webit-employee-ownership/https://mspmargin.com/articles/news-webit-employee-ownership/ Thu, 01 Oct 2026 12:00:00 +0000The Naperville, Illinois provider is now fully employee-owned after its founder partnered with Buildkin instead of selling to an outside buyer. https://mspmargin.com/articles/news-softcat-buys-gdt/https://mspmargin.com/articles/news-softcat-buys-gdt/ Thu, 17 Sep 2026 12:00:00 +0000H.I.G. Capital signed a definitive agreement to sell Dallas-based IT solutions provider GDT to an affiliate of Softcat at a $1.05 billion enterprise value. https://mspmargin.com/articles/news-niobrara-acquires-msp-corp/https://mspmargin.com/articles/news-niobrara-acquires-msp-corp/ Wed, 16 Sep 2026 12:00:00 +0000The U.S. private equity firm bought the founder-led Canadian managed IT platform and plans to expand it in Canada and into the U.S. https://mspmargin.com/articles/news-cybermaxx-acquires-avertium/https://mspmargin.com/articles/news-cybermaxx-acquires-avertium/ Wed, 16 Sep 2026 12:00:00 +0000The channel-focused MSSP bought Avertium to add Microsoft security, offensive security and GRC services, bringing new technology services distributor relationships with it. https://mspmargin.com/articles/news-microsoft-growth-margin/https://mspmargin.com/articles/news-microsoft-growth-margin/ Tue, 15 Sep 2026 12:00:00 +0000Pax8's September Microsoft update describes a new growth-based CSP margin, revised Change of Channel Partner rules and a partner agreement update taking effect December 1, 2026. https://mspmargin.com/articles/news-gtia-acquires-ascii/https://mspmargin.com/articles/news-gtia-acquires-ascii/ Tue, 15 Sep 2026 12:00:00 +0000The trade association bought the MSP community, folding about 1,300 ASCII member companies into GTIA with a dues credit and a lower combined annual cost. https://mspmargin.com/articles/news-eplus-daymark-assets/https://mspmargin.com/articles/news-eplus-daymark-assets/ Tue, 25 Aug 2026 12:00:00 +0000The solutions provider acquired assets of Daymark Solutions, a Microsoft Tier 1 CSP, to add Microsoft cloud, Copilot and security expertise in the Boston area. https://mspmargin.com/articles/news-framewerx-ad-micro/https://mspmargin.com/articles/news-framewerx-ad-micro/ Thu, 06 Aug 2026 12:00:00 +0000The Edmonton IT services firm bought a Vancouver-area managed services provider founded in 1992, adding a West Coast base and about 30% more staff. https://mspmargin.com/articles/news-katalyst-acquires-layer27/https://mspmargin.com/articles/news-katalyst-acquires-layer27/ Tue, 28 Jul 2026 12:00:00 +0000Katalyst bought Durham MSP Layer27, its first tuck-in since e4n chose it as the first U.S. platform company for a midmarket managed services business. https://mspmargin.com/articles/news-barracuda-acquires-evo-security/https://mspmargin.com/articles/news-barracuda-acquires-evo-security/ Wed, 08 Jul 2026 12:00:00 +0000Barracuda bought Evo Security, an identity and access management vendor built for MSPs, and plans to fold its tools into the BarracudaONE platform. https://mspmargin.com/articles/news-compassmsp-logic-group/https://mspmargin.com/articles/news-compassmsp-logic-group/ Tue, 07 Jul 2026 12:00:00 +0000CompassMSP bought The Logic Group, a Philadelphia managed IT and cybersecurity provider, adding Mid-Atlantic coverage and clients in regulated industries. https://mspmargin.com/articles/news-microsoft-mpa-december-update/https://mspmargin.com/articles/news-microsoft-mpa-december-update/ Wed, 17 Jun 2026 12:00:00 +0000Microsoft published a revised Microsoft Partner Agreement and CSP Program Guide for CSP partners, both taking effect December 1, 2026. https://mspmargin.com/articles/news-microsoft-365-july-price-update/https://mspmargin.com/articles/news-microsoft-365-july-price-update/ Mon, 15 Jun 2026 12:00:00 +0000Microsoft told CSP partners a global Microsoft 365 pricing update would take effect July 1, 2026, and changed the format of a reconciliation file field. https://mspmargin.com/articles/news-pax8-marketplace-reports/https://mspmargin.com/articles/news-pax8-marketplace-reports/ Tue, 09 Jun 2026 12:00:00 +0000At Beyond 2026, Pax8 added subscription, revenue and invoice reporting tools to its Marketplace, with customizable invoice reports available from June 9. https://mspmargin.com/articles/billing-in-advance-vs-arrears/https://mspmargin.com/articles/billing-in-advance-vs-arrears/ When you invoice for managed services and mid-month changes shapes your cash flow, your month-end entries and how much you end up financing for clients. https://mspmargin.com/articles/collections-and-ar-aging/https://mspmargin.com/articles/collections-and-ar-aging/ A practical routine for reviewing receivables, setting payment terms, using service pauses carefully and handling write-offs and bad debt reserves. https://mspmargin.com/articles/additions-and-license-true-ups/https://mspmargin.com/articles/additions-and-license-true-ups/ How to bill users, devices and licenses that change mid-month, choose a proration method you can apply consistently, and reconcile what clients use against what you invoice. https://mspmargin.com/articles/per-user-vs-per-device-pricing/https://mspmargin.com/articles/per-user-vs-per-device-pricing/ Each pricing model counts something different, and that choice shapes how you bill, how easily you can see margin and how much reconciliation work lands on finance each month. https://mspmargin.com/articles/annual-price-increases/https://mspmargin.com/articles/annual-price-increases/ How to write increase language into managed services agreements, decide which costs to pass through, give clients fair notice and model the effect on MRR and churn. https://mspmargin.com/articles/deferred-revenue-prepaid-blocks/https://mspmargin.com/articles/deferred-revenue-prepaid-blocks/ Cash from hour blocks and annual agreements paid upfront is owed work until you deliver it, and the books should show it that way month by month. https://mspmargin.com/articles/project-revenue-and-deposits/https://mspmargin.com/articles/project-revenue-and-deposits/ Billing a project and earning its revenue happen on different schedules, and keeping deposits and milestones straight in the books avoids overstated revenue and confusing margins. https://mspmargin.com/articles/sales-tax-on-managed-services/https://mspmargin.com/articles/sales-tax-on-managed-services/ Taxability of managed services, SaaS, hardware and labor differs from state to state, and mixed invoices make it harder. How to set up your systems and when to get help. https://mspmargin.com/articles/what-counts-as-mrr/https://mspmargin.com/articles/what-counts-as-mrr/ Monthly recurring revenue only means something if you define it the same way every month, and most of the confusion comes from onboarding, hardware and resold licensing. https://mspmargin.com/articles/prepaid-tools-and-annual-contracts/https://mspmargin.com/articles/prepaid-tools-and-annual-contracts/ When you pay for a tool a year upfront, recording it as a prepaid expense and tracking its renewal date keeps monthly cost of service smooth and prevents surprise renewals. https://mspmargin.com/articles/cost-to-serve-per-endpoint/https://mspmargin.com/articles/cost-to-serve-per-endpoint/ Knowing what it costs to support each user or endpoint under an agreement lets you price new deals with confidence and find clients that quietly lose money. https://mspmargin.com/articles/tool-stack-per-seat-costs/https://mspmargin.com/articles/tool-stack-per-seat-costs/ Every RMM agent, EDR license and backup seat costs money, and a monthly match against what you bill keeps unbilled seats from eating your margin. https://mspmargin.com/articles/technician-utilization/https://mspmargin.com/articles/technician-utilization/ Utilization shows whether your team has room for more clients or is running out of capacity, but only if you define it carefully and measure it from clean time entries. https://mspmargin.com/articles/pass-through-licensing/https://mspmargin.com/articles/pass-through-licensing/ Reselling Microsoft 365 and similar subscriptions adds revenue but little profit, so how you present it and report it decides whether your margin numbers mean anything. https://mspmargin.com/articles/security-stack-margin/https://mspmargin.com/articles/security-stack-margin/ Bundling EDR or MDR, email security, backup and awareness training into agreements works when you know each component's unit cost, account for minimums, and measure the bundle's margin separately. https://mspmargin.com/articles/distributor-invoice-reconciliation/https://mspmargin.com/articles/distributor-invoice-reconciliation/ A monthly match of distributor and marketplace charges against what you bill clients catches unbilled subscriptions, duplicates and missing credits before they turn into lost margin. https://mspmargin.com/articles/effective-hourly-rate/https://mspmargin.com/articles/effective-hourly-rate/ Dividing flat-fee agreement revenue by hours delivered shows which clients pay your real rate and which ones quietly cost you time. https://mspmargin.com/articles/fully-loaded-technician-cost/https://mspmargin.com/articles/fully-loaded-technician-cost/ A technician's hourly wage is only the starting point. Here is how to build a fully loaded cost per productive hour that you can use for pricing and margin. https://mspmargin.com/articles/chart-of-accounts-for-msps/https://mspmargin.com/articles/chart-of-accounts-for-msps/ Splitting revenue and cost of service by service line lets an MSP see which parts of the business actually make money, instead of one blended number. https://mspmargin.com/articles/month-end-close-checklist/https://mspmargin.com/articles/month-end-close-checklist/ An ordered close process built around how MSPs actually bill and buy, from agreement additions and license true-ups to deferred revenue and locking the period. https://mspmargin.com/articles/monthly-kpi-pack/https://mspmargin.com/articles/monthly-kpi-pack/ A single page with recurring revenue, gross margin by line, effective rate, receivables aging and cash gives an MSP owner what they need each month, if it stays consistent. https://mspmargin.com/articles/thirteen-week-cash-forecast/https://mspmargin.com/articles/thirteen-week-cash-forecast/ A rolling 13-week cash forecast built from billing cycles, payroll dates and vendor timing shows an MSP where cash gets tight before it happens. https://mspmargin.com/articles/separating-owner-and-business-spending/https://mspmargin.com/articles/separating-owner-and-business-spending/ Mixing personal and business spending muddies margins, creates tax risk and complicates a future sale, and a few simple habits keep the two apart. https://mspmargin.com/articles/psa-catalog-hygiene/https://mspmargin.com/articles/psa-catalog-hygiene/ A tidy product and service catalog, with each item mapped to the right income account, cost account and tax code, keeps your books accurate without monthly cleanup. https://mspmargin.com/articles/pre-invoice-review/https://mspmargin.com/articles/pre-invoice-review/ A short pre-send review of recurring invoices catches missed seat changes, stale discounts, tax errors and duplicates before a client finds them for you. https://mspmargin.com/articles/psa-vs-books/https://mspmargin.com/articles/psa-vs-books/ PSA-to-accounting syncs fail quietly, so revenue and receivables drift apart unless someone ties the two systems out every month with a few simple checks. https://mspmargin.com/articles/time-entry-discipline/https://mspmargin.com/articles/time-entry-discipline/ Time entries drive agreement profitability, billable revenue and payroll cost allocation, so a few clear rules make them useful for decisions rather than just compliance. https://mspmargin.com/articles/bank-financing-and-covenants/https://mspmargin.com/articles/bank-financing-and-covenants/ How lines of credit and term loans work for a managed services business, the financial covenants lenders commonly use, and the reporting you should be ready to deliver. https://mspmargin.com/articles/buying-a-book-of-clients/https://mspmargin.com/articles/buying-a-book-of-clients/ A financial checklist for tuck-in acquisitions of a small MSP or client book, covering agreements, margins, transferability and receivables, plus common deal structures. https://mspmargin.com/articles/preparing-for-quality-of-earnings/https://mspmargin.com/articles/preparing-for-quality-of-earnings/ What a quality-of-earnings team will test, how to get accrual books, reconciliations, revenue support and add-back documentation ready, and what to fix first. https://mspmargin.com/articles/earnouts-explained/https://mspmargin.com/articles/earnouts-explained/ What an earnout is, how the choice of metric shapes the outcome, and the measurement and accounting control points a selling MSP owner should negotiate. https://mspmargin.com/articles/customer-concentration-risk/https://mspmargin.com/articles/customer-concentration-risk/ How to calculate your top-client and top-five revenue share, why lenders and buyers watch those numbers closely, and practical ways to bring them down over time. https://mspmargin.com/articles/ebitda-add-backs/https://mspmargin.com/articles/ebitda-add-backs/ Add-backs can show a buyer what your MSP really earns, but weak adjustments get stripped out in a quality-of-earnings review and cost the seller credibility. https://mspmargin.com/articles/quality-of-recurring-revenue/https://mspmargin.com/articles/quality-of-recurring-revenue/ Buyers look past the monthly recurring total to the contracts, customers and margins behind it. Those details decide how much that revenue is really worth. https://mspmargin.com/articles/packaging-service-tiers/https://mspmargin.com/articles/packaging-service-tiers/ How to decide what belongs in each managed services tier, test each tier against its cost to serve, and set up reporting that shows how tiers perform. https://mspmargin.com/articles/what-diligence-asks-for-first/https://mspmargin.com/articles/what-diligence-asks-for-first/ Before a buyer's team looks at your stack or your people, they ask for the same core financial records. Have them organized before the first call.