What is PSA (Professional Services Automation)?
Software that helps professional services firms manage projects, resources, time/expenses, and billing in one platform.
Definition
Professional Services Automation (PSA) is software designed for services-based businesses (consulting, IT services, agencies, A&E firms) to manage the entire engagement lifecycle — from opportunity management through project delivery to invoicing. PSA integrates project management, resource management, time and expense tracking, billing/invoicing, and profitability analytics. It helps services firms improve utilization rates, project margins, and revenue recognition accuracy.
How PSA Works in ERP
PSA can be a standalone platform (like Certinia/FinancialForce, Kantata) or a module within an ERP (Dynamics 365 Project Operations, NetSuite SRP). When integrated with ERP, PSA data flows into financials for revenue recognition (ASC 606), project accounting, and resource cost analysis.
ERP Vendors with Strong PSA
Certinia (FinancialForce)
ERP built on Salesforce for professional services
Microsoft Dynamics 365
Modular ERP + CRM tightly integrated with Microsoft 365
Oracle NetSuite
The original cloud ERP — built for fast-growing companies
Sage Intacct
Best-in-class cloud financials for services and nonprofits
Frequently Asked Questions
What is the difference between PSA and ERP?
PSA is specifically designed for services delivery — project management, resource planning, time/expense, and billing. ERP is broader, covering finance, supply chain, manufacturing, HR, and more. Services firms often use PSA integrated with ERP for a complete solution.