What should I include in SaaS cost of goods sold (COGS)? This is a very common question from SaaS founders and finance teams. It’s also an important question and something that you need to get right. The proper coding of SaaS COGS versus operating expenses (OpEx) is important for many reasons. First, we must understand …| The SaaS CFO
You can’t manage a SaaS business by only using the standard financial statements. To really understand the underlying economics of your business, you must have a properly structured “software” or SaaS P&L (Profit and Loss Statement). You must also calculate the relevant SaaS metrics and margins for your business. The SaaS P&L Explained “infographic” below …| The SaaS CFO
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