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How to Categorize Expenses in a SaaS Startup v2.0

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The company grew their total spend from $390k/mo to $750k/mo during 2018. The gist of it is that Cost of Revenue includes costs that go into providing your Software as a Service. You’ll probably want to include Contract Labor – R&D for any product-related contractors you work with. Don’t forget the payroll’s subaccounts).