Run Billing Reconciliation From PSA to the Ledger

Fix the Population and the Cutoff

Have the finance owner define the period and the documents included. Use issued invoices rather than an unexplained mixture of drafts and posted bills. Record the export time so a later correction can be distinguished from a mismatch in the original comparison.

Keep the client and invoice identifiers alongside the amount. Include the document date and its accounting reference. If the systems use different identifiers, retain the mapping so another person can trace the same record.

Treat credits and voids consistently on both sides. Keep their link to the original transaction. A net total without its supporting documents can conceal a missing invoice and an unrelated adjustment.

The model includes a half-time bookkeeper in the example MSP. That is a staffing assumption, not a promise that any reconciliation fits into spare time. Name who prepares it and who reviews unresolved differences, with cover for absence.

Match Documents Before Comparing the Headline

I'd start by checking that each issued PSA invoice appears in the accounting records with the intended client and amount. Then check in the other direction for accounting invoices without the expected PSA source. Mark an agreed exception separately from a record nobody can explain.

In the illustrative book, say the PSA export totals $157,500 while the comparable accounting invoice records total $153,000. The difference is $4,500. A missing model-sized invoice is one possible explanation, but the arithmetic alone doesn't establish it.

Inspect the records behind the difference. It could be a document not transferred, a timing difference, or several corrections whose net effect is the same amount. Identify the actual cause before resending an invoice or changing a posting.

Even equal totals need a document check. A missing $4,500 invoice and a duplicated $4,500 invoice could cancel in the comparison. The total would match while both client records were wrong.

Build the Bridge to the Financial Accounts

Accounts receivable means the amounts customers still owe. Its closing balance includes what was owed at the start as well as the period's activity.

Have finance reconcile that movement separately from the invoice population. Keep approved adjustments visible rather than hiding them in a net difference. The person reviewing should be able to follow the closing balance back to its components.

Keep tax separate where it applies and check the configured account mapping. Use the actual accounting treatment rather than treating the gross amount due from a client as a revenue figure by default. Have the accountant resolve a classification question before changing the mapping.

Use the treatment approved for your business and the specific transaction. If revenue is recognized in another period, show the timing bridge. Don't turn an explanation of that difference into an unsupported change to the accounts.

Give Every Difference a Cause and an Owner

I'd keep an exception record with the source reference and the amount involved. Record the cause when established, the correction required, and the person authorized to make it. An unresolved item needs a next action and a review point.

Don't clear a difference with a balancing entry solely because it makes the totals match. The spreadsheet has no objections to a bad journal. Have finance establish and approve the correction through the normal accounting process.

If a transfer failed, check whether an accounting document already exists before repeating the transfer. If a client charge was wrong, follow the approved invoice-correction process. Keep the original reference so the reconciliation still explains what changed.

Re-run the relevant comparison after correction. Retain the evidence and mark what remains provisional. Closing the work record should mean the difference has been resolved or explicitly accepted by the responsible reviewer.

Find Work That Was Never Billed

Matching PSA invoices to accounting invoices doesn't establish that every legitimate charge reached the PSA bill. Keep that upstream check in the routine. Review agreement changes against the billing setup and applicable effective dates.

Allan Michelmore describes routing an end-user onboarding or offboarding request into a checklist with an accounts child ticket. In his example, accounts handles agreement additions and removals, including tools without direct PSA integration. That is a workflow suggestion for keeping the billing change attached to the work.

Use that handoff where it fits your process. The person completing the operational change identifies the billing action, and finance checks the agreement before applying it. Don't assume every technical change creates an additional charge.

Keep the Review Useful for Next Month

The model measures managed-service margin from the financials, including burdened delivery labor and tools. Accurate revenue classification matters to that comparison. A corrected invoice total alone doesn't verify the costs or establish that a client meets the margin target.

Have the reviewer inspect unresolved differences and repeated causes. A recurring mapping problem needs its configuration corrected through the approved process, while a missed agreement change needs a better handoff. Give the repair to someone who can complete it.

Start with the last closed month's issued documents. Match them to the accounting records, then ask finance to explain the bridge to receivables and revenue. Keep the open differences assigned until the supporting records can explain the result.