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How to Categorize Expenses in a SaaS Startup v2.0

Baremetrics

The gist of it is that Cost of Revenue includes costs that go into providing your Software as a Service. You’ll need Cost of Revenue to calculate your Gross Margin, which in turn you need to calculate Customer Lifetime Value (LTV), Customer Acquisition Cost (CAC) Payback Time and to understand your company’s unit economics in general.

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SaaStr’s Podcast “Best Of Guide” Our Top 10 Podcasts of All Time

SaaStr

They have funding from some of the best in the business including the likes of Benchmark, Sequoia, Redpoint and Marc Benioff, just to name a few. Before joining Upfront Mark was Vice President, Product Management at Salesforce.com following its acquisition of Koral, where Mark was Founder and CEO. Episode No. Episode No.

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How to categorize expenses in a SaaS startup

Baremetrics

This is where you record all of the costs that go to providing your service, such as hosting and customer support payroll. If you have sales from Professional services, you’d want to create two sets of Cost of Goods Sold?—?one Sales & Marketing. Next, we set up your Sales & Marketing (S&M) costs. Engineering.

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