MSP monthly financial report
An MSP report should split recurring revenue from projects and hardware. Recurring revenue pays the bills. The rest decides the good months and the bad.
The six numbers for an MSP
| Number | How to work it out | What it warns you about |
|---|---|---|
| Recurring revenue, share of total | Contract billing ÷ revenue | The part of revenue that pays the bills |
| Revenue per managed seat or device | Recurring revenue ÷ seats | Pricing falling behind tool costs |
| Tools and licenses, share of revenue | Software costs ÷ revenue | Vendor price rises you have not passed on |
| Hardware bought, not yet billed or paid | Open hardware orders | Cash lent to clients |
| Days to collect | What clients owe ÷ monthly revenue × 30 | Project invoices sitting unpaid |
| Largest client, share of revenue | Their billing ÷ revenue | Concentration risk |
Use these six in place of the general ones on the template's Report tab.
What to watch in an MSP
- Annual license renewals landing in one month
- Hardware purchased for clients and not yet paid
- Project invoices past 60 days
Not sure how much cash you should hold? Use the MSP cash calculator.
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