MSP Monthly Billing Reconciliation Checklist Template

Start three to five working days before the invoice date, once the main distributor and CSP invoices for the month are available.

• Open the reconciliation for the month — confirm the invoice date, the clients in this run and who prepares and approves it
• Export billed quantities from the PSA — every agreement with its billed users, devices, licences and services, and the unit price of each
• Collect this month’s vendor invoices — distributor, CSP and Partner Center reconciliation files, backup, security and any other per-seat supplier
• Confirm agreement changes this month — new clients, renewals, price changes, added or cancelled services and agreements ending

Shown only when a client agreement was signed, amended, renewed or ended this month.

• Update changed agreements in the PSA — services, quantities, unit prices, start and end dates, matching the signed document
• Apply proration for mid-month changes — using the method the agreement specifies, not the PSA default
• Check any price increase is allowed — the uplift clause and notice period in the agreement, and the date the notice was sent
• Stop billing for ended services — and schedule the matching vendor cancellations, so your costs stop when the revenue does

• Compare billed devices with RMM agents — per client, treating devices offline beyond your threshold as a question rather than a deduction
• Compare billed users with the directory — active, licensed users in Microsoft 365 or Google Workspace against the per-user count, with leavers removed
• Reconcile backup seats — protected servers, endpoints and SaaS accounts against what you bill and what the vendor charges you
• Reconcile security seats — EDR, email security and awareness training against billed quantities and vendor invoices
• Decide each difference — bill the increase, reduce the count, or ask the client to confirm, and record the decision

Every licence you pay for should appear on a client invoice, and every licence on a client invoice should be one you pay for.

• Match CSP charges to PSA additions — each Microsoft subscription line in the reconciliation file against a billed addition on the right client
• Find unbilled licences — subscriptions or seats you are paying for that no client is being invoiced for
• Find orphaned licences — paid licences assigned to no one, or to a client who has left, and decide whether to reassign or reduce them
• Check this month’s renewals — subscriptions that renewed at a new price, term or billing plan, and whether the client price still covers the cost
• Act inside the cancellation window — make any seat reduction on a new or renewed subscription within the vendor’s window, and record the date

• Review billable time entries — work outside the agreement that is not yet invoiced, with notes good enough for the client to recognise
• Update block-hour balances — hours used, hours expiring and clients who need a top-up quote
• Bill project milestones — milestones reached and approved change orders, against the project budget
• Apply approved service credits — from this month’s SLA review, on the invoice the review named
• Review the variance against last month — each client’s total, with any change above your threshold explained in the variance log
• Approve the invoice batch — the approver answers Approved or Not approved before any invoice is generated

• Generate and send invoices — from the PSA or accounting system, after approval, using your normal billing run
• Sync invoices to accounting — and check the totals agree with the approved batch
• Review margin by client — invoiced revenue against vendor cost and labour, flagging clients below your target margin
• Record the leakage recovered — under-billing found and fixed, so you can see whether the process is paying for itself
• Fix the cause of each repeat difference — a missing step in the new-user process, a technician buying licences outside the PSA, or an agreement never updated