FlexPoint is incredibly easy to work with; they support their product from end to end, and the platform is stable and reliable. It has every payment portal functionality that you need.”
Garrett Snelling
FlexPoint's Working Capital Solutions have been crucial in helping Loud & Clear expand its services to enterprise-level clients. The boost in our number of clients & annual revenue has been staggering.
Patrick Kemp
FlexPoint is incredibly easy to work with; they support their product from end to end, and the platform is stable and reliable. It has every payment portal functionality that you need.”
Garrett Snelling
FlexPoint's Working Capital Solutions have been crucial in helping Loud & Clear expand its services to enterprise-level clients. The boost in our number of clients & annual revenue has been staggering.
Patrick Kemp
FlexPoint is incredibly easy to work with; they support their product from end to end, and the platform is stable and reliable. It has every payment portal functionality that you need.”
Garrett Snelling
FlexPoint's Working Capital Solutions have been crucial in helping Loud & Clear expand its services to enterprise-level clients. The boost in our number of clients & annual revenue has been staggering.
Patrick Kemp
FlexPoint is incredibly easy to work with; they support their product from end to end, and the platform is stable and reliable. It has every payment portal functionality that you need.”
Garrett Snelling
FlexPoint's Working Capital Solutions have been crucial in helping Loud & Clear expand its services to enterprise-level clients. The boost in our number of clients & annual revenue has been staggering.
Patrick Kemp
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Managing payments is a significant challenge for many Managed Service Providers (MSPs). According to LexisNexis® Risk Solutions, 49% of businesses suffer a severe impact on their ROI as they struggle to reduce broken or failed payments.
50% of businesses lose more than 2% of their customers to failed payments, while 64% report it impacts their workforce. The report makes it clear that efficient payment management is crucial for the success of MSPs. Inefficient payment processing impacts cash flow while reducing customer satisfaction and retention rates.
MSP payment software simplifies and automates payment processing. It reduces the burden on financial teams by offering clients multiple payment options such as credit cards, ACH, and even flexible financing. From automated invoicing to secure payment processing and real-time tracking.
This article discusses MSP Payments Software features you need to improve your payment processes. We will also provide detailed insights on how these features can help you enhance business efficiency and support growth.
MSP Payment Automation Software is a specialized financial management tool tailored to automate billing and manage MSPs' financial tasks.
According to a QuickBooks® survey, robust and reliable software can save up to 14 hours per week spent on payment and billing-related administrative tasks. The software provides robust features such as customized invoicing, cash flow management, profitability insights, and payment tracking.
An MSP-centric payment automation software addresses their unique challenges. It supports diverse payment options, including recurring billing and one-time payments. All payments are processed in compliance with industry regulations like PCI DSS.
Automated reconciliation of payments and invoices saves time, reduces errors, and improves accuracy. The software integrates seamlessly with other MSP-centric tools like ConnectWise, QuickBooks, and Xero.
According to Mordor Intelligence, the MSP market will be $280.96 billion in 2024. It is expected to grow at a CAGR of 7.90%, reaching $410 billion by 2029. The growing market size indicates a rising demand for efficient payment software to support MSP operations.
However, the software must offer tailored services and features to address specific MSP needs. It must be scalable and flexible to accommodate the rapidly changing client demands and varying payment models.
Here are some essential MSP Payments Software features to look out for:
According to a QuickBooks® survey, late payments hamper the growth of 89% of businesses, and 76% intend to address this to focus on long-term growth.
Automatic invoicing and billing features generate accurate and timely bills. This significantly reduces MSPs' manual workload and eliminates errors.
MSPs effectively reduce administrative overhead while your staff gets valuable time for more strategic tasks.
For example, a Detroit-based MSP, TAZ Networks, reduced its invoicing time by 30% with FlexPoint’s AutoPay. The feature resulted in a 4x reduction of past-due receivables and saved their accountant three days per month.
If you are an MSP, automated billing and invoicing features reduce your administrative burden. Sending accurate invoices increases your chance of being paid on time and improves the client experience.
Most MSPs have a recurring revenue model with pricing based on the number of users or devices. An important task is managing clients' recurring payments.
MSPs must look for a subscription management feature in their software to automate billing cycles for recurring payments. Billing clients correctly and on time improves cash flow management.
Features like one-click payment make the payment experience hassle-free and enhance customer satisfaction.
Net-Tech Consulting, a Texas-based IT services management firm, sped up invoicing by 80%. Eliminating manual payment processing using AutoPay helped them save up to 60 hours annually.
An MSP payments platform with a subscription management feature simplifies repetitive billing and makes receiving payments frictionless. It also saves time spent on follow-up and reconciliation.
A PYMTS report shows that 81% of businesses invest in advanced AP and AR systems. MSPs must keep up with the adoption of modern payment options and offer clients the flexibility to choose their preferred payment method.
The MSP Payments software must seamlessly integrate with multiple payment gateways to accept payments through the following methods:
Client-specific portals are tailored to their payment and billing processes.
A centralized platform allows clients to manage their accounts and communicate with the MSP to report issues or request assistance. These portals build trust in client relationships and ensure comprehensive documentation for both parties.
Branded Client Portals also provide insights into usage, payments, and services to help clients with a seamless payment experience.
For instance, Ohio-based MSP SkyCamp Technologies automated accounting and reconciliation to speed up payments by 30% with FlexPoint’s user-friendly and passwordless client portal. It helped them save up to 8 hours per month by integrating with their QuickBooks to automate bookkeeping.
MSPs can build better client relations through intuitive branded client portals. These portals help maintain transparency in billing and account management processes, and clients can track their outstanding and upcoming payments.
For instance, a client can see how much is due each month on the dashboard. The portal allows clients to pay for all unpaid invoices or make a partial payment. MSPs can also give their clients flexible payment options through the portal for monthly or quarterly payments.
MSPs manage recurring revenue, custom billings, multiple clients, and complex pricing models to accommodate varying client needs.
An MSP-centric payment software must automatically reconcile received payments with accounting tools like Quickbooks or Xero and MSP tools like ConnectWise or Kaseya.
Real-time payment reconciliation reduces the chances of errors and improves client satisfaction. It saves up to 8 hours spent manually dealing with payment issues and managing cash flow.
Simplifying the reconciliation process helps MSPs focus on business growth without worrying about financial management.
MSPs can use real-time reconciliation features to automate their bookkeeping. It eliminates manual data entry and reduces human errors when simultaneously working on multiple large projects.
For example, as an MSP working with several enterprise-level clients on large-scale projects, you must invest thousands of dollars in equipment.
However, you can request clients' advance payments by offering them a flexible payment option and using advanced reconciliation to settle invoices in real time. This saves the fees and interest you would have spent on a working capital loan.
MSPs deal with sensitive client data and must adhere to regulatory compliances, such as PCI DSS.
MSP payments software should also ensure that clients’ financial information is secure. A secure payment platform also reduces the risk of fraudulent transactions and builds clients’ trust.
Advanced security features of MSP payment software, like data encryption using Transport Layer Security (TLS) and tokenization, protect client data. Replacing cardholder data with a unique identifier known as a token prevents breaches and eliminates the need to store sensitive data on MSPs' internal servers.
PCI-DSS v4.0 mandates more robust security measures like firewalls, MFA, and risk analyses.
Robust compliance features must be built into your MSP payment software to save you from the hefty non-compliance penalty of $5,000 to $100,000 per month and additional legal expenses. These features also strengthen client relationships by building their trust in your business.
Client management features like automated invoicing, payment reminders, and dispute resolution tools improve the customer experience.
MSPs can set up one-click payment automation for recurring payments and set rules for custom invoicing to ensure timely payments.
Client management tools centralize client data, allowing MSPs to review their billing processes and track payments.
Analyzing trends in payment data helps them identify areas for improvement or expansion of services. It also enables them to provide insights into client spending patterns and offer tailored solutions accordingly.
For instance, if you are an MSP with a growing list of clients, an intuitive dashboard allows you to track payment history and identify clients with outstanding payments.
You can use the data to offer flexible payment options based on a client's spending patterns and better manage your cash flow.
Payment software with customizable reporting features allows MSPs to track cash flow, revenue, and expenses. They can generate essential financial reports to understand their business performance clearly. The software also alerts regarding abnormal data and audits it for more detailed analysis.
The tools consolidate client data from various sources and display it on a single dashboard to help MSPs make informed decisions based on real-time data analysis. They even allow MSPs to compare data from different categories and periods for predictive analytics and forecasting. Reporting features reduce manual work and errors by automating report generation.
For example, you can reduce the workload of your finance team by generating reports dynamically for all clients together and individual clients. The software automates recurring report generation based on your preferred frequency.
MSPs wait an average of 60 days to receive payments from their clients, which impacts their cash flow. Payment reminders and notifications reduce non-payment and ensure timely payments from clients.
According to a PYMNTS study, by automating 50% of their AR MSPs can reduce Days Sales Outstanding (DSO) by 32%.
MSP payments software eliminates the hassle of tracking overdue invoices or following up with clients for payments.
Automated payment reminders keep clients informed on their outstanding balance, upcoming due dates, and changes in their billing plans.
For example, you can schedule automated payment reminders for clients and offer them an autopay option to speed up payments. Encouraging clients to pay on time can improve your MSPs' cash flow.
Payment software transforms MSP operations by streamlining financial processes and enhancing efficiency.
Automating invoicing and reconciliation reduces the time and resources spent on repetitive tasks. Accurate and timely billing improves MSPs' cash flow and financial stability.
Branded client portals improve client relationships through transparent and secure payment processes. Automatic reminders minimize payment delays while notifying clients of due dates and usage analytics.
Here are the benefits MSPs get from payment software:
MSP payment automation software automates accounting and billing operations, addressing the complexities of cash flow management. It significantly reduces the time and effort required to focus on strategic growth activities.
Payment automation must be a top priority for MSPs looking to improve operations and client relations.
The right payment solution supports MSP business growth by providing a product rich in features and integrations.
FlexPoint is a prime example of a solution that hundreds of MSPs use to automate their billing and payments.
FlexPoint offers a reliable and robust payment automation solution for MSPs. The platform streamlines and automates billing processes to improve cash flow while securing online payments.
FlexPoint provides a customizable and branded client portal with passwordless authentication and one-click financing to deliver an efficient and secure financial management experience.
Learn more about automating your MSP accounts receivables with FlexPoint. Visit our website or contact us to see how our solutions can transform your payment processes.
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When it comes to payments, MSPs need industry specific software
Trying to better understand what your MSP is required to do for PCI Compliance?
Will FedNow transform the way MSPs get paid? Not just yet. Push and pull payments are key concepts in payments.
Automated billing features in MSP payment software offer the following benefits:
MSP payment software improves client satisfaction through accurate billing, flexible payment options, real-time payment processing, and regular reporting.
MSP payment software should include the following security features: