By educating employees on the need for tight financial policies and providing everyone with resources to assist the collections department in its mission, MSPs can improve customer relations while strengthening their cash flow.
Effective billing and collections processes are key to financial stability. From the first contact with a prospective client to their payment hitting the company’s bank account, efficiency ensures success.
MSPs can achieve predictable on-time payments from customers. The timing and workflows are critical, as are steps for validating and tracking all the various payments to ensure nothing gets lost amidst the chaos of running an MSP.
Automated recurring billing systems take on some of the least popular manual tasks in managed services. These tools can also boost morale and eliminate headaches for clients’ accounting teams. Everyone will appreciate being involved in fewer emotionally draining collections calls.
A combination of effective A/R management practices and automation will put you in control should economic conditions worsen. The payout from having strong managed services contacts with steady cash flow is economic freedom.
Addressing the hidden costs of payment collection is critical for any forward-focused MSP. To accomplish that goal, providers must assess and then eliminate or optimize various procedures and implement payment solutions their clients will appreciate and actually use.