9 articles
Revenue
How MSP revenue is billed, recognized and measured, from prepaid blocks to a clean MRR number.
Billing in advance or in 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.
Collections and AR aging for MSPs
A practical routine for reviewing receivables, setting payment terms, using service pauses carefully and handling write-offs and bad debt reserves.
Mid-month changes and monthly 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.
Per-user, per-device or tiered 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.
Planning annual price increases on agreements
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.
Prepaid hours are a liability first
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.
Project deposits, milestones and revenue timing
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.
Sales tax on managed services invoices
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.
What belongs in your MRR number
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.