MSP Success Stories: The FlexPoint Advantage in Automated MSP Payments

Managed service providers that rely on manual processes encounter challenges when handling invoices and payments and maintain operational efficiency and client satisfaction.

Relying on manual invoicing and billing processes leads to delays, errors, and unnecessary costs.

According to data from Ardent Partners, manual invoice processing takes up to 80% longer than invoice automation. 

Other research from the Institute of Finance & Management (IOFM) reports that it costs an average of $16 to process a manual invoice versus just $3 for an automated invoice. 

Considering these statistics, it isn’t surprising that switching from manual to automated MSP payments is a transformative move for MSPs.

This article will examine the case studies of ten MSPs successfully implementing FlexPoint's automated payment solutions to demonstrate its advantages. 

These examples illustrate precisely how FlexPoint improves payment accuracy, reduces manual workloads, and boosts client satisfaction.

{{toc}}

The FlexPoint Advantage in MSP Payment Automation

Managing financial workflows becomes increasingly complex as MSPs scale. 

With more clients to serve, higher transaction volumes, and more diverse service needs, manual workflows will no longer cut it. 

MSPs face slower payment cycles, increased risk of human error, and mounting operational costs.

The Institute of Finance and Management (IOFM) reports that manual invoice processing has an error rate as high as 12%.

With the additional time and cost of manual invoice processing, MSPs relying on manual payments significantly disadvantage those using automated payment solutions.

FlexPoint offers features specifically designed to meet the unique needs of MSPs, helping them overcome these challenges and create more streamlined financial operations.

1. Automated Invoicing

There are strong incentives for MSPs to use recurring payments. For example, WiFi Talents reports that subscription-based businesses grew revenue five times faster than S&P 500 company revenues. 

Subscription businesses also generate a 100% increase in customer lifetime value (CLTV) compared to traditional companies. 

However, managing invoicing is one of the most time-consuming aspects of running an MSP. These challenges are especially pronounced for businesses that utilize recurring service agreements. 

Manually generating invoices each billing cycle can lead to mistakes, missed invoices, or delays in payment processing. 

FlexPoint takes this burden off MSPs by automating the invoicing process.

MSPs can set up automatic billing cycles to charge recurring clients according to a billing schedule that is favorable to both the client and the provider.

With FlexPoint, invoices can be automatically generated and sent to clients at the appropriate time. No manual input is required, which limits the opportunity for human error.

This automation allows MSPs to focus more on delivering services than worrying about administrative tasks.

2. Integrated Payment Processing

Data from a Federal Reserve study found that “80% of Americans are interested in leveraging faster payments to pay businesses.”

This means most clients expect to pay conveniently via credit card, ACH, or other digital methods. 

Modern payment processing methods, including ACH payments, credit cards, and digital wallets, are known for speed and efficiency. 

FlexPoint’s integrated payment processing lets you offer multiple payment methods to your clients without needing separate systems.

Clients can choose their preferred payment method, empowering them to make fast and efficient payments.

3. Real-Time Financial Reporting

Accurate, up-to-date financial information is integral to decision-making. However, many MSPs struggle to understand their financial health clearly due to outdated or delayed reporting systems. 

Real-time financial reporting from FlexPoint gives MSPs instant access to the information they need to make informed decisions.

With FlexPoint, MSPs can generate detailed reports showing their revenue, outstanding invoices, and cash flow at any moment. This transparency allows you to plan, identify potential issues, and take action before problems escalate.

Based on this information, you can also tweak your strategies to optimize cash flow and allocate resources where they matter most. 

FlexPoint’s real-time reporting provides visibility into events as they unfold. This helps MSPs be proactive, mitigate financial risk, and enhance profitability.

For example, understanding the status of outstanding invoices, high-performing services, and revenue projections helps you refine client billing and identify growth areas. 

This insight also helps you shift resources to the most profitable parts of the business.

4. Accounting Tool Integration

Along with integrated payment processing, FlexPoint also integrates with other tools MSPs commonly use. 

For example, FlexPoint can connect with accounting software such as QuickBooks Online, QuickBooks Desktop, and Xero. 

By leveraging integrations with which MSPs are already familiar, they can automatically consolidate their financial data into a single place. 

When your accounting system is connected to your payment processor, you eliminate the need for manual payment tracking, saving time and reducing errors. 

This eliminates the need for manual data entry and the challenges that come with it. 

Not switching between platforms when managing accounts, tracking payments, or generating reports creates a unified financial ecosystem where financial information flows smoothly between systems.

Along with various PSA and accounting integrations, FlexPoint also offers API access. FlexPoint’s robust API allows you to build custom integrations to ensure you have what you need.

5. Improving Cash Flow and Reducing Late Payments

Late payments are a reality for most small and mid-sized MSPs. 

Atradius's 2023 Payment Practices Barometer survey found that 55% of all B2B invoiced sales in the US were overdue. 

In another QuickBooks study, 89% of these businesses report being hindered by late payments.

Delayed payments negatively affect an MSP’s cash flow, making it difficult to pay employees, pay bills, and operate regularly.

However, there are several proven strategies to reduce the likelihood of late payments and, in turn, their impact. 

For example, a Paystand report found that switching to electronic invoicing resulted in 77% faster payments and could cut payment processing costs by 81%. 

With FlexPoint, you can access efficient payment processing tools and features that encourage timely payments. 

A convenient, frictionless payment process means there are fewer barriers when clients go to pay their invoices. 

A cornerstone of FlexPoint’s solution is AutoPay, a tool that automates cash flow by setting up automated payments for client invoices. 

It helps improve cash flow predictability while reducing unexpected delays, giving MSPs peace of mind about their billing operations and ability to meet financial obligations. 

‍FlexPoint’s branded client payment portal streamlines your collections process by offering your clients flexible, secure payment options.

Clients can choose from credit cards, ACH, and flexible financing options. This allows them to pay how they want to and alternate payment methods according to their needs. 

FlexPoint’s client portal includes transparent payment history and automated reminders for upcoming or overdue payments. 

This accomplishes several things. 

First, it simplifies clients' payment processes and optimizes cash flow for MSPs by reducing payment delays.

Finally, it significantly reduces administrative load, as seen in the case studies below. Your staff will spend less on manual activities such as payment processing, following up on late payments, and invoice generation.

6. Scalability for Growing MSPs

FlexPoint allows MSPs to focus on growth without worrying whether payment systems can scale with the demand.

It automates invoicing, payment tracking, and reporting to ensure your back-office operations are more efficient and cost-effective. 

This allows you to allocate more of your budget to client services and strategic initiatives instead of increasing administrative overhead. 

As a result, you can confidently scale, supported by a payment system that adapts to your changing needs.

Beyond the advantages of automation, FlexPoint also offers working capital solutions to facilitate easy access to the funds often needed to expand business operations. 

Through this embedded financing capability, MSPs can offer working capital to their clients, helping them make significant purchases without upfront financial strain.

This provides two distinct advantages: 

• It expands clients' purchasing power with fast access to capital
• Removes barriers to technology purchases that might otherwise limit service partners' revenue potential

FlexPoint’s working capital solution also enables MSPs to secure capital to fuel growth initiatives. 

Whether serving a few clients or hundreds, FlexPoint’s automation and financing options adjust to an MSP’s evolving needs. It provides a quick, simple, and transparent way to access the capital necessary to support growth. 

‍FlexPoint is a convenient platform that combines streamlined financial operations and flexible funding access to support MSPs focused on sustainable growth.

Real-World Success Stories of MSPs Using FlexPoint

After examining the features and benefits of FlexPoint’sMSP-specific payment automation software, we will move on to tangible results.

Below, we examine several case studies of MSPs that adopted FlexPoint and how it impacted their financial operations.

1. Loud & Clear

Loud & Clear is a veteran-owned MSP headquartered in Indiana. As the company grew, it began focusing more on acquiring enterprise clients.

However, they had limited cash flow, making it challenging to handle upfront costs on big projects. 

Co-founder Patrick Kemp initially sought advanced payments from clients, but most large clients preferred payment terms.

This preference for term-based payments over upfront payment made scaling the business complex. Paying late minimized available cash flow and reduced the ability to reinvest in the company, pay operating expenses, and support growth.

In his search for a solution, Patrick found FlexPoint, which offered a cost-effective remedy: working capital solutions to provide the cash flow needed to pursue enterprise projects.

Access to working capital enabled Loud & Clear to extend preferential payment terms. This gave clients what they wanted while also helping the MSP scale.

Loud & Clear’s revenue was up 400% within eight months, with more than half a million dollars from new enterprise clients.

Its payment processing was five times faster than when it relied solely on QuickBooks, saving thousands in fees and interest. 

Results:

• Revenue increased by 400% within eight months.
• Earned over $500,000 from new enterprise clients.
• Payment processing was five times faster.
• Saved thousands in fees and interest.

2. TekRescue

tekRESCUE, an IT provider based in Texas, helps businesses and organizations with cybersecurity and other digital services.

Managing payments and collections became a significant challenge when the business grew. With QuickBooks, TekRescue paid high monthly fees in exchange for an inefficient system.

Maintaining a list of recurring payments, those on pause, and differing payout methods across spreadsheets took up a substantial amount of time. It also left room for expensive mistakes. 

TekRESCUE needed a solution that was both fast and cost-effective, and that led the company to FlexPoint. 

FlexPoint’s working capital solutions (short-term loans for tekRESCUE clients) were seamlessly integrated with tekRESCUE’s billing, automatically generating weekly, daily, or hourly invoices.

TekRESCUE now receives an alert for every payment, failed payment, and message. 

Automated invoicing and immediate payment tracking have eliminated the need for manual data entry and ensure no duplicate invoice numbers are generated.

With FlexPoint’s secure payment portal, tekRESCUE can securely store client credit card and banking information. This further reinforces client trust and makes it easier for clients to pay. 

When clients don’t need to re-enter their payment information each time, the payment process has less friction. 

Other payment documents also remain in one easily accessible place for clients. They can quickly see invoices, review upcoming payments, and update payment details. 

These changes and improvements have saved the business 20 hours each month by reducing administrative workload by 75%.

Results:

• The administrative workload was reduced by 75%.
• Saves 20 hours per month on admin tasks.

3. Compunet Technologies

Compunet Technologies, Inc., a California-based IT solutions company, was looking for a new provider for payment processing. Its previous provider’s acquisition led to significant service disruptions.

Ideally, Compunet needed a solution that would improve its systems without requiring a complete overhaul of its workflow. 

FlexPoint was the perfect solution—it seamlessly integrated with Compunet’s existing operations while providing enhanced functionality.

FlexPoint’s AutoPay capability enabled Compunet to send charges to clients on the first of every month and to receive payments within days. FlexPoint reduced Compunet’s monthly payment window by 12 days.

With these more predictable cash inflows, Compunet could better align vendor payments.

‍Compunet could also monitor past-due balances in FlexPoint’spayment portal, immediately see and correct billing problems, and track cash flow.

Implementation was straightforward, with FlexPoint working with Compunet’s previous provider to securely migrate clients’ payment information. 

The system also allowed clients to provide feedback on what they wanted to see in the product in the future, including improvements to the dashboard and invoice view. 

With FlexPoint, Compunet now receives almost all payments within 72 hours. This has dramatically improved cash flow and freed the team to focus on growth and client service. 

Additionally, FlexPoint helped Compunet reduce its monthly billing effort from five hours to 15 minutes, a 95% improvement in invoicing speed, and four times faster billing cycles. 

Results:

• 95% improvement in invoicing speed.
• Reduced billing time from five hours to 15 minutes.
• Payments received within 72 hours
• Significant cash flow improvement.

4. Circuit Saviors

Circuit Saviors is an MSP in IT consulting for small—to medium-sized businesses. 

Circuit Saviors needed a payment solution to streamline operations as they scaled up and added more clients. They wanted to grow the business without adding unnecessary administrative work for the finance team.

Through his research, owner Garrett Snelling found that FlexPoint did exactly what Circuit Saviors needed for its platform without the high fees or restrictive contracts. 

For example, it offered white-glove onboarding and support services, making the switch seamless. 

Upon partnering, Circuit Saviors reduced its operational complexity by offering clients a streamlined payment experience.

Automatic recurring billing and AutoPay eliminated the need for Circuit Saviors to manually match any incoming payments, saving an estimated 16 hours per month.

Global matching rules for autopay also eliminated Circuit Saviors' need to manage payment approvals manually. 

Before this, Circuit Saviors had to match each payment to its contract or set approved payment amounts. Payments are automatically processed based on item category or description, with no extra effort required.

Following FlexPoint’s implementation, Circuit Saviors’cash flow has risen by approximately 30%, efficiency has improved by approximately 30%, and the monthly outstanding payments balance has decreased.

Results:

• Cash flow increased by 30%.
• Efficiency improved by 30%.
• Monthly outstanding payments balance decreased..=
• Saves 16 hours per month on administrative tasks.

5. WJP Technology Consultants

WJP Technology Consultants, a cybersecurity and IT services company, was ready for a billing upgrade. Its previous provider was unsupportive and impersonal, took a long time to onboard, and had high monthly costs plus transaction fees.

When WJP’s President and CEO, Bill Perkins, discovered FlexPoint, he saw a clear match for his company’s needs. 

FlexPoint completely restructured WJP’s automated invoicing. 

Its intuitive interface integrates seamlessly with QuickBooks, allowing WJP to manage and monitor real-time payments and invoices. 

Through FlexPoint’s customized, custom-branded payment portal, clients could also view and pay invoices, store payment methods, and, most importantly, easily enroll in AutoPay (which clients were quick to do).

With FlexPoint, WJP has seen a threefold increase in payment processing speed, a 30% increase in AutoPay usage, and a 15% decrease in costs. 

Results:

• Threefold increase in payment processing speed.
• 30% increase in AutoPay usage.
• 15% decrease in costs.

6. Net-Tech

Net-Tech Consulting, an MSP based in Texas, used to face many challenges, including manual invoicing and inconsistent cash flow. 

Many clients paid via check, and its seven-person staff spent up to 60 hours manually managing invoices and reconciling payments annually.

Before FlexPoint, Net-Tech was also charged 1% on all ACH payments, further compromising cash flow and revenue.

Once Net-Tech could offer multiple payment options with FlexPoint, clients could pay quickly and securely. With FlexPoint’s AutoPay and one-click payment options, Net-Tech no longer had to worry about late payment fees. 

‍FlexPoint also dramatically lowered ACH fees, saving Net-Tech thousands in processing expenses. With fixed processing costs, FlexPoint doesn't penalize Net-Tech for making money or charge micro-transaction fees.

Clients can now pay through a safe and convenient channel, and the team no longer needs to chase down late payments. 

This meant Net-Tech could scale its business with more reliable cash flow and efficient payment procedures. 

With FlexPoint, the MSP receives payments 20 days faster, invoicing is 80% more efficient, and thousands in ACH fees are saved. 

Results:

• Receives payments 20 days faster.
• Invoicing efficiency improved by 80%.
• Saves thousands in ACH fees annually.

7. Excellent Networks

Excellent Networks, an El Paso-based MSP that provides IT support to clients in various industries, faced invoicing challenges, which led to partnering with FlexPoint. 

The company’s invoicing process was time-consuming and involved a manual billing and cheque system that was frequently delayed.

After making the switch, FlexPoint’s client portal and AutoPay function revolutionized Excellent Networks' billing. 

Excellent Networks President Mark Luna quickly configured FlexPoint to work with QuickBooks, and clients could view and pay invoices online. 

FlexPoint automates payment reminders, deposits, and reconciliations, reducing administrative work and ensuring faster payment turnaround.

Automation has made it easy to move many clients from credit card payment to ACH payment, saving Excellent Networks more than $10,000 yearly in credit card fees. 

With FlexPoint, Excellent Networks didn’t just save on credit card fees—the MSP also saves 24 hours each year on billing. 

FlexPoint’s automated invoicing has also drastically reduced the time it takes to receive payments by 80%. Now, Excellent Networks receives most payments within five days. 

Results:

• Saves over $10,000 annually in credit card fees.
• Receives most payments within five days.
• Reduced time to receive payments by 80%.
• Saves 24 hours of work annually.

8. IT Vortex

IT Vortex was experiencing significant payment delays due to an older invoicing system that required clients to leave the IT Vortex site to pay via PayPal. 

Unfortunately, this meant clients had to pay their own processing fees, which were proportionally larger for higher invoices. This hurt IT Vortex’s relationship with some of its bigger clients. 

Many clients were also confused by payment being attributed to PayPal instead of IT Vortex, leading to an altogether frustrating and confusing process.

The shift to FlexPoint completely transformed IT Vortex’s payment process for the better. 

Clients can access a secure, passwordless portal to view invoices and pay online. 

The AutoPay feature incentivizes prompt payments, while FlexPoint’s integration with QuickBooks automatically reconciles payments. This eliminates the need for manual data entry, resulting in less time and money spent on the payment process.

With FlexPoint, IT Vortex has reduced payment cycles by up to 30x, saved more than $15,000 each month in invoice fees, and eliminated 60 hours per year of work manually entering and reviewing invoices. 

Results:

• Payment cycles reduced by up to 30x.
• Saved over $15,000 each month in invoice fees.
• Eliminated 60 hours per year of manual invoice management.

9. SkyCamp

SkyCamp is an Ohio-based MSP that was struggling to manage multiple payment processing platforms to ensure all of its billing needs were met. 

Their previous platform was not optimized for small businesses and did not offer the necessary integrations.

‍SkyCamp had to manually process every monthly ACH payment because invoice totals would change based on customer license counts.

Ready for a change, SkyCamp switched to FlexPoint. 

This allowed SkyCamp to consolidate its payment processing into one platform, and its invoicing and reconciliation were automated with QuickBooks. 

The simplified, passwordless FlexPoint portal also made it easier for clients to manage payments and view invoices, which increased SkyCamp’s AutoPay adoption and decreased delays from late clients.

SkyCamp appreciates FlexPoint’s collaborative nature, pointing out that FlexPoint is quick to incorporate client feedback to improve the platform.

The platform's intuitive nature has helped SkyCamp simplify its operations and concentrate on its core competency of providing IT services.

With FlexPoint, SkyCamp has saved eight hours of monthly admin work, increased AutoPay use by 20%, and improved their payment cycle times by 30%. 

Results:

• Saves eight hours of admin work monthly.
• Increased AutoPay adoption by 20%.
• Payment cycle times improved by 30%.

10. TAZ Networks

TAZ Networks, an MSP serving small and medium-sized businesses in Metro Detroit, wanted a way to reduce the time spent invoicing and logging past-due receivables. 

Their accountant, Gaby Patterson, spent several days each month chasing down past-due payments and repeatedly sending invoices. The backlog grew to the point where it was becoming unmanageable.

Moving to FlexPoint’s client portal made invoicing and following up for past-due accounts quicker and easier for TAZ Networks. 

As Gaby explains, “Right off the bat, using FlexPoint saved me three days a month where I can do the rest of my job. I don’t have to send out email receipts or invoices anymore, and that’s huge.”

Clients can log in to a passwordless portal to see invoices, store payment information, and set up AutoPay. This reinforces client confidence in the security of their payment information, along with other benefits. 

With FlexPoint, TAZ Networks has decreased AR aging by fourfold, reducing six to eight months past-due invoices to one or two months past due. Invoicing time is down 30%.

Results:

• Accounts receivable aging reduced by four times.
• Past-due invoices decreased from six to eight months to one or two months.
• Invoicing time was reduced by 30%.

The FlexPoint Advantage: Summary of Key Results

Conclusion: The Measurable Benefits of Using FlexPoint for MSPs

The ten case studies explored in this article offer a glimpse of the transformative effect FlexPoint can have on finance workflows and overall success.

They also show the meaningful gains in efficiency and profit that MSP payment automation can bring.

These include:

• Increasing productivity
• Improving cash flow
• Reducing administrative overhead
• Creating frictionless payment cycles
• Greater visibility into finances

Automated invoicing, flexible payment terms, and real-time financial analysis allowed these MSPs to bypass time-consuming, error-prone manual processes and move to a forward-looking, proactive model. 

Hours spent on admin were dropped, rates of missed payments plummeted, and processing costs and overhead fell. 

With FlexPoint, these firms could shift their billing and collections staff to client service and growth.

FlexPoint is an ideal solution for MSPs at any stage. 

It is compatible with the most popular MSP software, offers PSA-agnostic integration options, and allows client portal customization.

Discover how FlexPoint can revolutionize your MSP’s payment operations and financial management. 

Visit our success stories page to read more about how MSPs like yours are thriving with FlexPoint. Ready to see the difference?

Schedule a demo today to start your journey towards enhanced efficiency and profitability.

Additional FAQs: FlexPoint’s Impact on MSP Success

{{faq-section}}