Your SaaS Cost of Goods Sold (COGS) Is Probably Wrong
In episode #9, I address your SaaS cost of goods sold. I review a lot of SaaS P&Ls, and I’d say 90% are set up incorrectly. It’s so important to set up your P&L correctly to manage your business and calculate important SaaS metrics.
- What should be included in COGS?
- Your revenue streams dictate your COGS departments
- Why is COGS important?
- Expectations of COGS
- It starts with your chart of accounts and dimension coding
- Avoid the big bucket of expenses
Blog Post on SaaS COGS: https://www.thesaascfo.com/what-should-be-included-in-saas-cogs/
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