The growth prospects for Managed Service Providers (MSP) are huge today. Studies show that by 2026 there will be a USD 354.8 billion worth of market size opportunity for MSPs globally.
As more businesses look forward to becoming a technology company at their core to succeed in the digital economy, MSPs become a crucial part of their growth strategies. However, for MSPs, the business side is just one part of the growth story. They need to serve multiple customers with a plethora of services that would be managed at different scales depending on contractual agreements with the customer.
There will be a wide gamut of services that an MSP would secure from popular vendors like, for instance, Microsoft services from the Microsoft Partner Center and similar services. They would then leverage these offerings to deliver tailored services to end customers under a variety of billing, licensing, and subscription options that fit budgetary requirements and business objectives of end customers. As the scale of engagement grows so will the complexity of managing them.
One of the best solutions that MSPs leverage to handle the synchronization of their accounting and financial disciplines with the end customer offerings and contracts is ConnectWise. ConnectWise offers an industry-leading mechanism to help MSPs gain end-to-end visibility into their business operations and enables them to boost efficiency and reduce redundant tasks to the maximum.
ConnectWise allows MSPs to handle a wide range of customer-facing functionality like managing tickets, billing of services, measuring and reporting utilization rates of resources, managing recurring revenue streams, and much more. It is often considered an ERP for businesses that offer managed services to multiple customers.
But ConnectWise operates in a reconciliation mechanism supporting specific requirements for most MSPs. With profit margins often narrowing down due to rising competition, MSPs need to move forward with zero tolerance for errors and revenue leakages.
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To get the most out of their ConnectWise solution, it is important to ensure the following facets are taken care of:
Partners taking the charge
For the end customer, the MSP is their single point of contact for all their technology needs for which they have begun an engagement. Hence, the MSP needs to ensure that they have total control over the billing mechanism employed.
Discrepancies and diverse processing needs should be managed at the partner level itself and should not involve the actual vendor organizations like Microsoft.
Flexibility in billing
As a continuation of the above facet, the MSP needs to have flexibility in their billing options offered to end customers.
They should not be tied up with decisive delays or a complex web of contractual restrictions from the vendor. In simple terms, what the MSP bills to the customer should be independent and reliable and not involve their service vendors like the Microsoft Partner Center.
Consolidated Subscription Management
When an MSP offers a gamut of services based on resources sourced from multiple vendors, they must ensure that end customers are not bothered or troubled with complex invoicing and subscription management. For this, MSPs need to have their billing, sales, and finance teams aligned with the offerings that are made available.
The best way to achieve this synchronization is to ensure self-service provisioning, automated billing, and accurate accounting and invoicing practices within the MSPs operations.
Very often mismatches and human data entry errors in the manual provisioning of subscriptions can result in mismatched billing and error-prone invoicing. This can be a huge letdown for customer experience and MSPs will have a hard time winning back the confidence of customers after such fiascos.
To ensure that it doesn’t happen, it is important to encourage self-service provisioning and automated invoicing and billing mechanisms that also integrate with ConnectWise to ensure overall alignment with the business accounting and revenue schedules. This will prevent errors and inefficiencies and assure that all changes are tracked and accurately invoiced.
While ConnectWise offers MSPs a powerful means of handling their service business, it is evident now that sustainable profitability and recurring revenue assurance from this line of business require extra muscle. This is where Work 365 comes into the picture. Our state-of-the-art billing automation and self-service subscription provisioning solution enables MSPs to have peace of mind with their business operations.
What’s even better is that now Work 365 comes with ConnectWise integration that enables partners to enjoy the best of both solutions. They now have a self-service tool from which services can be subscribed to and managed by customers and an integrated billing automation system that reconciles with their accounting and financial departments simultaneously with minimal effort.
Want to know more about having your MSP business streamlined and risk-free with ConnectWise and Work 365 together?