SaaS COGS
SaaS COGS is a real-life cheat code for financial clarity.
Why?
If you can sit down with your finance team,
And break down costs by department —
specifically for Technical Support, Professional Services, Customer Success, and Dev Ops…
…you can create a crystal-clear picture of your gross margins and financial performance.
However — and this is a HUGE “however” — you can’t just lump costs into random categories.
You must categorize your COGS vs. OpEx with precision and assign expenses accurately across departments.
For example, I work with SaaS founders and CFOs on understanding their financials.
To ensure financial clarity, I help them segment their COGS by key areas like…
→ Professional Services
→ Customer Success
→ Technical Support
→ Dev Ops
At first, founders are often focused on just tracking revenues.
But eventually, I help them build accurate SaaS P&Ls with precise COGS breakdowns.
Most of the time, detailed COGS breakdowns don’t get the attention they deserve…
…but they provide MUCH more clarity on gross margins and recurring revenue streams.
That clarity leads to…
- Investor confidence
- Better decision-making
- Scalable financial structure
…which, at the end of the day, is what really matters (even more than just tracking your top-line revenue).
So if you’re looking to create real financial clarity—
Lead with accurate COGS…
…and the rest will work itself out.