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Windows Patch Management Best Practices for MSPs and IT Professionals blog header

Windows Patch Management Best Practices for MSPs and IT Professionals

Windows Patch Management Best Practices for MSPs and IT Professionals

While patch management may not be the most exciting activity, it’s critical to ensuring the security of servers, applications, and operating systems. Managed service providers and IT pros who fail to stay on top of patching expose their clients’ IT environments to security breaches and possible downtime of systems, services, and applications.

MSP University - Business

MSP Billing Guide

MSP Billing Guide

Today’s managed service providers offer a variety of services. Along with these services comes the dilemma of how to invoice and bill for them. MSP invoicing and billing mechanisms can easily become complex.

In the early days of MSPs, the billing model was much simpler. Customers would request support, technicians performed the work, and you’d get the bill. The billing process was more of a general all-in-one-type break/fix model.

Now there are several models MSPs use to charge customers. For example, per-device pricing, per-user pricing, tiered pricing, consumption-based pricing, value-based pricing, flat-rate pricing, and à la carte pricing.

Further reading MSP Pricing: The Startup Guide

But it’s not just the pricing models that pose a challenge to fast and timely billing. There are several factors that go into this. Making sure accurate time tracking is in place for each client, updates to the billable work being performed, inventory updates (via RMM), and other factors need to be addressed and accounted for.

MSP Pricing Strategy Guide
Learn how you can build the right offering for your clients, bundle your products together and determine a proper pricing strategy.
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Let’s review the methods and best practices for MSP billing and take a brief look at some software applications you can use.

Manual Billing

We start off with manual billing. While this method works, it eats up your time and does not scale well. If you are a small MSP with a small client base, this might make sense; however, as you grow, it won’t grow with you.

Nevertheless, let’s take a look at what billing your clients manually looks like at the end of the month or billing cycle:

  1. First you need to calculate the costs of your services, such as backup, antivirus services, workstation patching, server and network monitoring, and any other services offered to the client.
  2. Next, you need to export your RMM reports to see what billable work has been done during the billable period.
  3. Now, you need to log into your ticketing system and review all the staff’s time entries. Typically, the direct time entries are taken from the ticket and put on the invoice. A manual check is needed for accuracy and the time is then copy/pasted to the invoice.
  4. If all the information is accurate, you need to add up the cost of services along with the billable work in order to forward it to your client for billing purposes.

As you can see, this is a routine and dull process. If any one of the time entries has errors or issues, your billing process stalls.

Now, imagine doing this each month for ten clients. Or tens of clients.

This manual billing ritual isn’t just time-consuming, because you have to pull data about the billable work from multiple sources, but it’s error-prone as well.

For instance, if you don’t use automated time-tracking, your technicians could lose some valuable billable time.

Automated Billing

Automated billing requires additional upfront work and configuration but, in the long run, it is easier to manage, and producing invoices for your customers becomes seamless.

The first step in the process is to set up your client inside your MSP professional services automation (PSA) system and list all the services which they are subscribed to in their contract. This covers the standard service offerings as well as any additional add-on services.

Next, you need to integrate your PSA solution with your RMM tool. Doing so ensures your PSA solution automatically syncs the quantity of services in a customer contract (for example, the number of workstations on a site) with your RMM.

Your PSA solution can read the time spent on the tickets for the client during the billing period and add up all the time. An advanced PSA solution can also come with automated ticket time-tracking, which means ticket time gets automatically logged as soon as an engineer picks up a ticket.

After automatically summing up time entries, your PSA will then let you run your invoices and export them to your accounting software for accounting purposes.

All this happens within a matter of minutes and the real benefit is that the entire process is relatively error-free.

MSP Billing Best Practices

Let’s review some best practices that will make your MSP billing more consistent and successful.

Accurate and Detailed Invoicing

Accurate invoicing is vital in order to build trust with your customers. If you get billing right, they’ll have confidence in the quality of your services. The easiest way to ensure accurate, detailed invoicing is to automate your billing process. When your technicians’ reports and your help-desk processes are fully integrated with your billing platform, you can deliver clarity for every item listed on your invoices.

If a customer has a question about a particular service item, you can easily track the charge and explain the details. In fact, by providing a high level of detail about all your services, you’ll be helping customers understand exactly what you’re doing in their IT environment—and how you benefit their business. These conversations can actually be a way of educating a customer on the range of services you offer, and provide the opportunity to potentially upsell and cross-sell additional options.

At the end of the day, this is what customers want. Someone who is not technical can pick up an invoice and understand all the work being performed.

Timing

Timely invoices give your customers certainty in tracking costs and planning expenses. Prompt billing is as good for your customers as it is for you. Late invoices, on the other hand, can feel like unexpected expenses—and that’s a negative customer experience. There are times when, if the invoice is too late, customers will forget about the work performed, which may make them reluctant to pay the invoice.

How do you get your invoices out as quickly as possible? Integrate your ticketing, help-desk and invoicing tools under a single platform and eliminate manual steps. This allows you to generate and send invoices faster and more efficiently. And the faster your customers get their invoices, the sooner you get paid.

Be Flexible

Each customer is different, so they each have different billing needs. This means your invoicing approach should be flexible. You want to generate easy-to-understand invoices that are as simple or as detailed as required for your various billing models—hourly rate, retainer, or fully managed services. By not giving customers a one-size-fits-all invoice, you’ll be demonstrating that you truly understand their business needs.

You’d be surprised how far these simple, small matters impact your overall business. By implementing these, you’ll generate more business and provide better customer service.

Software Recommendations

I’ve referenced professional services automation and other systems in this article. You may wonder what specific software applications you can use to improve your MSP billing processes.

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  1. The PSA is the brain of an MSP business. These platforms typically collect all the information needed for billing and can generate invoices based on recurring contracts, as well as support and hardware-procurement costs. No manual calculations or accounting requirements are needed. MSPs can create a seamless collection process by integrating ConnectWise, Autotask, and other PSAs with MSP-friendly accounting and secure payment platforms.
  2. An accounting package is also necessary. These systems no longer just calculate the basic costs but, through various integrations with other MSP tools, share key information to help automate billing and collection. QuickBooks, Microsoft Dynamics GP, and Xero are excellent choices for MSPs’ financial tools. These systems can automatically pay invoices based on a one-time fee or recurring charges, and then reconcile those details across integrated solutions. Today’s online packages also provide owners, accountants, and other decision makers with on-demand reporting options, so they can monitor business metrics and alter collection strategies as needed.
  3. Next, a secure payment platform is essential. Generating invoices is the easy part; getting your clients to pay those bills in a timely fashion is considerably harder. Collection policies only go so far. SMBs need clear direction, including a firm time window, for paying their managed services bills, and automation to ensure this mindless task happens each month. Platforms like ConnectBooster give your customers the ability to manage their credit card and ACH information and access current and past invoices in a secure online portal. Integrations with PSA and accounting tools ensure everything updates across all your systems in real time, saving you a lot of time and headaches while strengthening your MSP business’s cash flow.

Further reading Software for MSP Finance and Accounting Management

Conclusion

As you can see, automation can alleviate much of the pain associated with invoicing. Some of the biggest time-wasting processes in an MSP business involve billing. From collecting information and generating invoices to accepting credit card payments days, weeks, or even months later, the payroll costs some companies incur to get paid for the services they deliver can be astronomical.
By implementing these systems and best practices, your MSP business will effortlessly deliver quality invoices and get paid in a timely manner.

Comprehensive Guide to Password Security blog header

Comprehensive Guide to Password Security

Comprehensive Guide to Password Security

More than half of all data breaches happen because of weak passwords.

Bad passwords are a headache for any system administrator whose users are allowed to modify or change them. At the same time, weak password management is a pain for the company as a whole, since malefactors are on a constant lookout for weaknesses they can breach. Continue reading

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The Top 6 Tech Challenges for Small and Medium Businesses

The Top 6 Tech Challenges for Small and Medium Businesses

When it comes to technology, small and medium businesses, or SMBs, face something of a Catch-22. SMBs need to invest in tech to continue their growth. But because the technology landscape evolves so rapidly, many SMBs struggle to make tech investments that yield value and sustain growth over the long term. Continue reading

11 Practical Tips to Increase Your 
MSP Profitability blog header

11 Practical Tips to Increase Your MSP Profitability

11 Practical Tips to Increase Your MSP Profitability

No matter what size business you run or which types of managed services you provide, it’s a safe bet that you’d welcome any opportunity to enlarge your profit margins. With that reality in mind, here’s a look at eleven practical steps you can take to increase profitability without overhauling your entire business or having to invest substantial capital in new services or processes. Continue reading

MSP After Hours Support

How to Run a 24/7 MSP

How to Run a 24/7 MSP

After-hours service is a fact of life for most MSPs. While it’s not the most pleasant aspect of the job, there are ways to make after-hours servicing a more profitable and organized proposition. With more businesses demanding support 24/7, MSPs who don’t offer after-hours service are at a serious disadvantage.

A 24/7 MSP must fine-tune their after-hours support. The three main factors to consider when thinking about running a 24/7 MSP are:

  • Policy
  • Process
  • Team + Scheduling

In this article, we will explore how MSPs can hone in on after-hours support and create a profitable practice, while keeping clients happy.

Policy

If you don’t have an after-hours policy in place, it’s time to begin to develop one.

Typically, labor covered under a managed service agreement (MSA) extends from 8AM to 5PM, Monday through Friday. One challenge with providing customers with after-hours support is determining what constitutes an after-hours call to the service desk. If you are not careful and do not have the correct policy in place, you can run into issues where customers are opening tickets and calling your service desk to report minor issues. To work around this, labor that is conducted beyond the hours specified under an MSA can be billed at 1.5 times the regular rate if it is performed after 5PM or during weekend hours.

Implementing a policy like this ensures fewer emergency after-hours calls from clients and forces them to consider whether an emergency is really worth the extra cost. This leaves you and your team only having to handle real problems after hours. In a perfect world, customers only open tickets or report true emergency issues on the weekends or after hours. At the same time, the extra money earned needs to go to the one handling the after-hours emergency as an incentive.

Another common policy that MSPs can create is a minimum labor charge for any after-hours work. For example, there could be a minimum charge of $220.00 for after-hours support. If a user calls the service desk and the issue takes only 15 minutes to resolve, the customer will be charged the minimum, $220.00. This also ensures that clients only call with urgent issues that need to be resolved after hours and that cannot wait until normal working hours.

Process

Typically MSPs use email to log new tickets through their PSA system. While this level of automation is great, it can have its shortcomings. First off, when a user sends in an email to open a ticket, the automated response from the PSA can get caught in the end user's junk folder. In addition to that, someone has to be monitoring the PSA ticket queue or consistently checking email in order to be notified of the issue.

For after-hours support, you need a more reliable solution. A better solution is to use intelligent alerting apps, such as PagerDuty or OnPage. These intelligent systems use other methods within their application to alert the on-call or after-hours staff. Finding an intelligent alerting application lets you prioritize the severity of incidents, reduces alert fatigue, and ensures that incidents are dealt with based on their severity.

Another key benefit of using an intelligent alerting system is that it minimizes the time it takes to repair issues. This is extremely important, as most issues reported after hours are emergencies and users do not want to wait. Intelligent alerting applications also minimize the time it takes for engineers to be apprised of the event, so they can repair or mitigate the occurrence faster.

Here are some questions that MSPs need to ask themselves about alerting:

  1. Was the event triggered by a real issue or by an issue that could have waited until the following day?
  2. Was the alert delivered to the appropriate person? If not, was this because the alert was missed or was the person who received the alert unable to handle the issue?
  3. Was enough information provided to the MSP on call, so that they could handle the issue quickly?

Answering these questions will provide you with valuable insight into whether your alerting response system is working.

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Team and Scheduling

Having the right mechanisms in place to schedule your team is paramount. Digital on-call scheduling enables teams to better manage the burden of after-hours calls, so that team members take turns being responsible for the company’s important IT functionality. Since responsibilities are rotated and these are presented in the digital schedule, no one person is responsible for IT outages. With digital on-call scheduling, management can also work more diligently to minimize alert fatigue and burnout. Alert fatigue often results from engineers receiving too many alerts, rather than having the burden of alerting distributed among all team members. If alert fatigue is not effectively managed, many engineers will burn out and switch jobs.

Further reading 5 Reasons Why Your Technicians Leave, and How to Avoid It

Use a digital on-call scheduler for after-hours service rotations. A little organization goes a long way. MSPs and their teams need to work together to set a schedule that works for everyone, with work being distributed equally.

The nature of after-hours service is volatile and one cannot predict the kinds of emergencies that might pop up. This is why these schedules need to be flexible.

This schedule should be the responsibility of one person on your team who modifies the schedule on a weekly basis according to their working times and availability.

Conclusion

In today’s technology landscape, after-hours support is a fact of life. MSPs need to have a robust catalog of service offerings which includes after-hours support. You may lose customers if you do not offer it. Having 24/7 support is a huge selling point and can be used to gain trust with new clients.

If you do not currently have a 24/7 support option, as you’ve read in this article, with the right policies, processes, and team scheduling you can easily create and run a 24/7 MSP!

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9 Things to Consider When Choosing a Backup Solution

9 Things to Consider When Choosing a Backup Solution

There are two types of people: those who back up their data properly and those who haven’t lost any information… yet. Regular backups are vital; that way, you can be sure that in the event of any emergency, you will be able to get back to work quickly. Backing up your data from time to time with no retention policy or schedule might be sufficient for home use but, for business, a fully fledged backup solution is a must. Continue reading

Choosing a Remote Desktop Solution

9 Things to Consider When Choosing a Remote Desktop Solution

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Most of the issues related to a company’s IT infrastructure can be addressed online without any need to go anywhere in person. All you need in this case is a proper remote desktop solution. With this, you can connect to any PC and solve almost any problem. However, there is a question – what do we mean by “proper”? Continue reading