Bookkeeping for managed IT service providers
An MSP's revenue looks smooth on the contract list and lumpy in the bank. Monthly agreements recur, projects bill in milestones, hardware passes through at thin margins, and licensing costs scale with every seat sold. Mispar keeps recurring and project revenue separate and reconciles vendor and payroll costs against what clients actually pay. Plans start at $229/mo.
Best for: Managed service providers, IT support companies, break-fix shops moving to contracts, and MSPs with hardware or licensing resale.
Separated
MRR
Tracked
Projects
Visible
Hardware margin
Monthly
Cash flow
How Mispar keeps your MSP books clean
Industry-specific accounts and categorization, with the reporting scope agreed before work starts.
Recurring agreements and project revenue
Keep monthly contract revenue apart from project and milestone billing so recurring coverage is real and one-off work does not inflate it.
Annual prepayments and renewals
Where your accounting method calls for it, track annual contract prepayments apart from revenue recognized as service is delivered.
Hardware and licensing pass-through
Record hardware resale and per-seat licensing costs on their own lines so thin pass-through margins do not hide inside service revenue.
PSA and billing system exports
Reconcile agreement invoices and time entries from your PSA with what was actually collected and deposited.
Technician payroll and subcontractors
Reconcile payroll-provider records and subcontractor payments, organized under the reporting structure agreed for your business.
Tool stack and vendor bills
RMM, backup, security and productivity vendor bills stay on distinct lines so the stack's cost per period is visible.
A simple, predictable process
From kickoff to your first clean close, here is exactly what happens.
Review PSA and billing exports
We start from the records you already have: PSA agreement and invoice exports, processor statements, vendor bills and bank feeds.
Map revenue and cost lines
Recurring, project and pass-through revenue are mapped to an agreed chart of accounts with opening balances reviewed.
Reconcile payments and payroll
Deposits, processor payouts, vendor bills and payroll records are reconciled to the bank each month.
Close monthly books
Monthly statements with an exceptions list and the service-line reporting agreed for your business.
Illustrative example
A client prepays a year of managed services while a hardware project bills in milestones. We track the prepayment under the agreed policy and keep the hardware pass-through on its own lines, so one good month does not disguise the recurring run rate. This is an illustration of the method, not a customer case or a guarantee.
Managed IT Service Providers bookkeeping — your questions
Can you separate recurring revenue from project work?
Yes. Agreements and project invoices are recorded on separate lines, so you can see the recurring base and the one-off work that surrounds it.
How are annual prepayments handled?
It depends on your accounting method. On an accrual basis, prepaid service amounts are generally tracked as a liability and recognized as the service is delivered. We follow the policy agreed with your CPA.
We resell hardware and licenses at thin margins. How does that show up?
Pass-through revenue and its direct costs are kept on their own lines, so the resale margin is visible and does not distort the service margin.
Will my PSA replace the accounting file?
The PSA explains agreements and tickets; the accounting file explains the financial statements. We reconcile the exports with the bank without promising an unsupported direct integration.
Does the $229 starting plan cover a growing MSP?
The final plan and scope depend on agreement volume, accounts and payroll size. We agree that scope before starting; catch-up work is discussed separately.
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