The SaaS P&L is critical to the management of your SaaS business. I talk about the SaaS P&L (profit and loss statement) almost every week with SaaS founders, finance, and accounting teams. At this point, I’ve reviewed hundreds of SaaS P&Ls (also called an income statement). I’d say about 90% of them are structured incorrectly, …| The SaaS CFO
Gross margin analysis is fundamental to assessing the profitability and overall financial health of your SaaS business. First, we must understand our overall gross profit. Overall gross profit is commonly calculated incorrectly. Next, we must understand the health of each revenue stream. Each revenue stream’s gross profit contributes to our overall gross profitability. Margins by …| The SaaS CFO
There are many financial metrics that I calculate and review each month, and this includes my SaaS gross margin. Of course, it’s not just your overall gross margin that is important. You must also calculate and understand gross margins for each of your revenue streams. Depending on your business model, these revenue streams may include …| The SaaS CFO
