SaaS costs & gross margins [eBook]
How business should think about categorizing their SaaS expenses.
Cost Of Goods Sold (COGS for short) is the total of all direct costs incurred in delivering a product/service to customers.
Though it sounds simple, how to categorize what is COGS and what isn't has caused heated debates and arguments across boardrooms and funding battles.
For every organization, as SaaS count grows — to the second biggest expense after headcount — categorizing them as COGS or not impacts gross margins significantly.
In our eBook, we cut the clutter and offer a clear framework for segregating SaaS expenses into COGS and non-COGS.
- Using the 4A's model to determine how to categorize SaaS expenses
- Understanding why calculating your COGS is important
- Defining what COGS means, and how it impacts your business