SaaS costs and gross margins:
Which is CoGS and which is not
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.
What’s in this
Ebook?
Ebook?
What is COGS?
Why bother with COGS?
What SaaS is COGS?
How to categorize SaaS expenses — the 4A’s model
Who should read this ebook?
CFOs looking to understand how they can optimize their SaaS Spending
Procurement Heads who want to streamline their procurement processes
Key stakeholders in organizations’ SaaS Procurement & Management Process
Why you should read this ebook?
Understanding COGS
Gain clarity on what constitutes Cost Of Goods Sold (COGS) in the context of SaaS expenses and learn how categorizing these costs correctly impacts performance metrics.
Gross Margin Optimization
Discover strategies for optimizing gross margins by categorizing SaaS expenses, identifying opportunities for cost reduction, and benchmarking against industry standards.
Increased Visibility
Improve operational efficiency by centralizing visibility of SaaS tools, conducting monthly reporting and evaluation meetings, and setting up automated reminders for contract renewals and overages.
