Brandi Bonds | Maximizing Your MSP's Value: Secrets from a Fractional CFO

Sep 17, 2024

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Show Website: https://mspbusinessschool.com/

Guest Name: Brandi Bonds LinkedIn page: https://www.linkedin.com/in/brandi-bonds-998a676/ Company: Next Level Now Website: https://nextlevelnow.net/ Hosts: Brian Doyle: https://www.linkedin.com/in/briandoylemetathinq/ In this episode of MSP Business School, host Brian Doyle welcomes Brandi Bonds, Managing Partner of Next Level Now. Brandi brings her wealth of expertise in fractional CFO services to the table, discussing how MSPs can better manage their finances and increase profitability. With her extensive background in the industry, Brandi offers valuable insights into the financial challenges and opportunities MSPs face, especially in today’s competitive market influenced by mergers, acquisitions, and private equity firms.

The conversation kicks off with Brandi sharing her background and journey into the MSP world. She then delves into the critical issue of how financial structuring can significantly impact a business’s valuation, particularly during acquisitions. Brandi emphasizes the importance of proper financial presentation and discusses common pain points MSPs encounter, such as improper expense classification and misunderstanding the accrual versus cash basis accounting. She also highlights the benefits of transit.

Key Takeaways:

Proper Financial Structuring: Correctly setting up financial systems and understanding accrual versus cash basis can significantly enhance business valuation.
Importance of Utilization: Tracking employee utilization accurately can help optimize staffing and improve profitability.
Advantages of Fixed Fee Billing: Shifting from hourly to fixed fee contracts can stabilize revenue, simplify billing, and increase business valuation.
Investment Decisions: Borrowing when you don't need it and utilizing reliable financial forecasting tools are crucial for prudent business investments.
AI and MSPs: Integrating AI can streamline routine tasks, yet maintaining personal connections with clients remains vital.

Sponsors vCIOToolbox: https://vciotoolbox.com