Skip to content
Red EarthRed EarthRed Earth
  • About
  • MSP
  • QBO Conversion
  • Services
  • Your Journey
  • Blog
  • Careers
  • CONNECT

Tag Archives: ITNation2022

Professional Services Automation (PSA)

Nine Takeaways from IT Nation 2022

Posted on 11/16/202212/15/2022 by Paul McCann
16
Nov

Nine Takeaways from IT Nation 2022 Despite a hurricane, IT Nation 2022 pressed on and was a success in Orlando. I was fortunate to be […]

Continue reading →
Posted in Professional Services Automation (PSA)  |  Tagged ConnectWise, IT Nation, ITNation2022
Recent Blog Posts
  • Understanding Budgets vs. Cash Flow Forecasts
  • Stop Overpaying Yourself!
  • Embracing Budgeting: A Strategic Shift for Sales Focused MSP Owners 
  • How to Match Inventory in Your PSA with Your Accounting File
  • Should I Use Automated Sales Tax in QuickBooks Online or ConnectWise?
  • Feel the Flow: The Circular Process of Invoicing, Payments, and Credit Memos with ConnectWise, Wise-Sync and QuickBooks Online
  • A benchmarking success story for DLC Technology Solutions
  • What are successful MSPs doing differently?
  • How Do I Calculate My Employees’ Total Cost?
  • 7 Reasons MSPs Choose QuickBooks Online

RED EARTH PARTNERS WITH

Red Earth Logo

ABOUT  SERVICES  BLOG  FAQ

© 2023, Red Earth CPA. All rights reserved.

Copyright 2025 © Red Earth
  • About
  • MSP
  • Services
  • Your Journey
  • QBO Conversion
  • Blog
  • Careers
  • CONNECT

BELOW GROUND

You have little to no engagement with your accounts.

The qualifiers.

  • No vendor relationships, you resell retail products
  • No differentiation between cost of good and expenses
  • You digitally submit and approve time cards
  • No collection of sales tax
  • Late payments on account (tax return is in arrears, late loan repayments)

Some big (and simple) changes would reshape your position but you’re gonna want to take action pretty quickly.

Stage 1

You can pull data from your numbers. You’re in a position to use this information strategically to grow your business.

The qualifiers.

  • You review accounts payables and receivables on a monthly basis
  • You’re cloud based and accounts are synced with third party apps
  • You digitally submit and approve time cards
  • You close accounting records within 30 days of month end
  • You’ve documented the monthly close procedures
  • Your Professional Services Automation (PSA) is connected to your accounting file

You’re on the right track! Now it’s time to pull your accounting processes up to the same standard as your client-facing procedures. If you do, you’ll gain powerful insight into your business.

Stage 3

You’re able to use your finances to inform business decisions.

The qualifiers.

  • You use a standardized industry chart of accounts for robust reporting and benchmarking
  • You measure 5 important KPIs
  • Your income statement outlines profitability for each service
  • You digitally receive all client payments (no more than two different methods)
  • You divide payroll, payroll taxes and benefits into COGS, administrative and sales expenses according to each employee

You’re in a position to use your financial data to strategize, forecast and implement long-term goals.

BASECAMP

Accounting is an afterthought but you get around to it.

The qualifiers.

  • You reconcile all transactions within 90 days
  • You allocate revenue and expenses to the right P&L accounts
  • You divide distributions proportional to ownership
  • You split loan payments between principal and interest
  • You separate personal and business expenses

A shift in mindset will bring stability and growth within your reach.

STAGE 2

You’re fully in control. You’re compliant and engaged.

The qualifiers.

  • You digitally record, approve, sync and pay all invoices
  • You digitally capture and store receipts and expenses
  • You gauge pricing on expected profit margins
  • Your payroll is automatically synced to the accounting file
  • Owners are compensated at market rate to ensure accurate profitability metrics
  • Owners know the net profit and cash flow at month end

You can pull data from your numbers. You’re in a position to use this information strategically to grow your business.

STAGE 4 (THE SUMMIT).

Peak performance. Your finances and systems are operating at maximum efficiency.

The qualifiers.

  • You’re maintaining a cashflow forecast
  • You use an industry benchmark and identify where you can improve
  • You maintain policies and procedures regarding assets, sales tax and core accounting processes
  • You identify and document characteristics of ideal companies
  • You cultivate a network of trusted (and potential) financial partners

With streamlined processes, readily available data and dynamic long-term strategy, the backend of your business supports powerful growth.

"*" indicates required fields

Name*

Give me the teaching required for my journey!