How to Structure Your SaaS P&L
Too many SaaS businesses think they have a revenue problem.
That if they could just close more deals, they’d suddenly be profitable and ready to scale.
But in reality, a lack of deals isn’t your issue…
The structure of your financials is.
See, it’s easy to book revenue, but difficult to drive sustainable growth.
All you need to do is onboard more clients without addressing the key levers in your SaaS P&L, and the revenue will come in.
But the problem is, that kind of approach leads to unhealthy margins and cash flow issues—
You’re just patching up leaks without fixing the pipeline.
But if you structured your P&L like this…
→ Bookings separated by:
subscription
professional services
and managed service revenue streams
→ Clear allocation of COGS and operating expenses
→ Defined SaaS financial benchmarks that track:
gross margins
R&D spend
G&A spend
…suddenly you’d get a completely different financial picture:
Real clarity on profitability, runway, and growth potential—while keeping your investors confident.
Sure, maybe it’d take some effort to build out this structure…
…but it’ll be made up of decisions that will actually move the needle for your business.
So you have two choices:
- Keep flying blind with no financial clarity
- Build a P&L that drives profitability and strategic growth
I know what choice I’m making.
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