SaaS costs and gross margins: Which is CoGS and which is not

Bay Area Edition

GAAP does not clearly define the term Cost Of Goods Sold (COGS). In effect, COGS is not mandated by regulation. Yet, for every organization, as SaaS count grows — to the second biggest expense after headcount — categorizing them as COGS or not impacts gross margins significantly.

Authored by

Siddharth Sridharan
Co-founder & CEO, Spendflo
Nivas Ravichandran
Head of Marketing, Spendflo

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SaaS costs and gross margins: Which is CoGS and which is not
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What’s inside this ebook?

In this ebook, we draw from our experience buying, managing and securing SaaS applications for the world’s leading organizations, to offer you a clear framework for segregating SaaS expenses into COGS and non-COGS.

  • What is COGS?
  • Why bother with COGS?
  • What SaaS is COGS?
  • What SaaS is not COGS?
  • How to categorize SaaS expenses — the 4A’s model

How to use this eBook?

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About Spendflo

Spendflo's SaaS buying and optimization platform drives collaborative buying, contextual automation and guaranteed ROI for its users with its unique benchmark data.

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