What is professional services automation?
Professional services automation (PSA) is software that helps firms such as IT service providers, lawyers and consultants manage client projects, billable staff time and billing. ConnectWise PSA, Autotask PSA and HaloPSA are examples used by managed service providers (MSPs).
A PSA creates the invoice, often for an agreement. It is not the accounting ledger. A sync tool passes the invoice to Xero or QuickBooks Online, and the ledger then holds the due date, the open balance and the payment status.
That split matters for accounts receivable. Reminders, late fees and statements run from the ledger copy of the invoice, so billing in the PSA stays as it is. See how to chase PSA invoices.
A PSA is also a different tool from remote monitoring and management (RMM) software. Wikipedia notes that in the IT sector a PSA is frequently integrated with RMM tools. Neither one replaces accounts receivable software, which chases the overdue invoice.
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