CASE STUDY
How Network Outsource Replaced Manual Margin Spreadsheets With Daily Profitability Data
Three years of granular data now drives smarter renewals – and the best year the company has had.
For a fast-growing, 60-person MSP, getting a clear read on margin used to mean rebuilding a spreadsheet from scratch every month. Network Outsource’s Adam Mahoney wanted something more durable: a live, granular view his entire leadership team could actually manage by.
HEADQUARTERS
New Hyde Park, NY
MSPCFO USERPax8 Value Creation Coaching
MSPCFO USER3+ Years
FEATURED VOICE
Adam Mahoney
President
60 Employees
across service, NOC/SOC, project management, sales, and finance.
30,000+
line items reviewed in each MRR profitability report.
30 - 40 Hrs/Mo
manually reporting time eliminated by automation.
THE PROBLEM
Profitability Lived in a Spreadsheet Someone Had to Manage
Before MSPCFO, getting a clear read on margin by revenue stream, contract, or project meant assembling it by hand — aggregating sales across revenue streams line by line. It worked, but it was slow and “time-consuming to have to put together” every time. A related AI-driven client count matrix the team later tried to build manually was taking 30 to 40 hours a month before it was automated into a report. And with licenses, subscriptions, and support all bundled into a single agreement line, it was hard to see which piece of a contract was actually profitable.
We used to build what we called a stack-rank gross margin document by hand — it was time consuming to put together every time. MSPCFO helped us with that.
Adam Mahoney
President, Network Outsource
Example Profitability Report
How MSPCFO Changes the Process
Network Outsource restructured its contracts — first in 2023, then again in a second iteration in 2024 — splitting out licenses and subscriptions, Office 365, dedicated technicians, and support so each could be tracked on its own. That data now feeds an internal managed services pricing tool that estimates future hours from a similar client’s own history, rather than an educated guess, when pricing renewals and new proposals. Finance, sales, project management, service, and the NOC/SOC teams all use MSPCFO regularly — often reviewing customer and contract efficiency. Each month, a project-profitability report with 200 to 300 line items goes out to the team’s Slack channel and into their regular meetings, so margin issues or billing mistakes get caught and discussed quickly.
The Outcome
- →MRR margin aggregate is substantially higher than it was three years ago; and has consistently increased.
- →An AI-assisted client count matrix that used to take 30 – 40 hours a month now runs as a report in minutes.
- →Renewals and new proposals are priced against an internal tool built on a similar clients’ own history, instead of an educated guess.
Our bottom line is, we’re having the best year we’ve ever had.
Adam Mahoney
President, Network Outsource