Josh Peterson
In this Don’t Be That Guy episode, Josh Peterson is joined by Ryan Alter to break down the essential KPIs that define a financially healthy MSP. This conversation dives deep into the 13 key numbers every MSP must know—covering agreement gross profit, effective hourly rate, payroll ratios, and billable utilization—and why financial literacy is just as critical as technical expertise.
The discussion reveals how to properly segment your chart of accounts, separating recurring, project, and hourly service revenue, and why classifying service payroll inside COGS (not G&A) is a light-switch moment for clarity. Ryan joins from Egypt to share hard-won lessons from his MSP journey and the importance of discipline in data, process, and perspective when your goal is profitability and sustainability.
For MSPs seeking to improve their financial visibility and service margins, explore our related resources: recurring revenue in ConnectWise, dispatcher accountability, and time entry discipline.
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Episode Highlights
- 00:00:38 – The 13 financial metrics every MSP must understand to survive and scale.
- 00:08:32 – Why segmenting recurring, project, and hourly revenue is non-negotiable.
- 00:13:13 – Payroll belongs in COGS, not G&A—how this changes everything.
- 00:22:50 – How service managers can directly influence top-line revenue.
- 00:33:03 – Understanding agreement gross profit and its impact on delivery and onboarding.
- 00:41:40 – Billable utilization and effective hourly rate as the pulse of profitability.
- 00:53:50 – Business perspective: why people and resilience matter more than numbers alone.
About the Guest
Ryan Alter is a former MSP owner from Missoula, Montana who grew a one-man shop into a 25-person operation before exiting successfully. He brings real-world lessons from two decades of leadership and a passion for helping MSPs connect operational performance with financial results.
🌐 Connect with Ryan on LinkedIn →
About the Host
Josh Peterson is the CEO of Bering McKinley and host of the BMK Vision Podcast. Through the Don’t Be That Guy series, Josh challenges MSP owners to confront the financial blind spots that hold them back and build businesses driven by clarity, accountability, and data.
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