Financial Basics with Insight from Distinguished Channel Expert: Rayanne Buchianico
Is it time to hand off bookkeeping responsibilities? Do you know what type of professional is needed?
The processes and knowledge involved in the financial side of a managed services business have changed significantly over the past decade. Between competitive price pressures, rising personnel and training costs, and ever-evolving collections problems—not to mention new reporting and compliance requirements—MSPs have to deal with many more complexities today. Getting pulled in multiple directions on things outside their core competencies is bad for any business owner, but for managed services professionals responsible for critical decisions for many organizations, the effects can be devastating.
So many things can go wrong when working outside “your zone.” For example, most entrepreneurs know little about accounting best practices and all the disparate federal, state and local regulations and tax formulas. Many MSPs cross many geographical boundaries to support the IT need of their clients. With more employees operating from their homes and hybrid work environments, the number of locations under most providers’ control is increasing, as are the potential taxing entities with interest in each firm’s related income.
The financial and legal consequences of not properly reporting revenue to each city, town and state can be substantial. Now consider all the difficulties in reconciling income and expenses for various projects, programs and recurring services and it’s easy to see why most IT firms seek the help of qualified accounting professionals.
It’s the same story most MSPs tell their clients: every business owner should focus on what they do best and leave complicated matters like information technology support and accounting to experienced experts.