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πŸ“ŠπŸ’‘ Dive into SaaS P&L Essentials: Sales Ops Explained! πŸš€βœ¨

Daily Tips on SaaS Finance and Metrics

πŸŽ™οΈ Hey there, SaaSpreneurs!πŸŽ™οΈ

Ben Murray here with an exciting update from SaaS Metrics School! In our latest podcast episode, I tackle a question from one of our sharp-minded listeners: should sales operations be included in sales and marketing expenses? This is a fantastic question that digs into the core of our accounting principles and the foundation of accurate SaaS metrics.

BTW, I just opened enrollment for the February Cohort of my SaaS Metrics Foundation training program. Grab the 2024 pricing and bonuses today! Learn more here!

You can also listen to this episode here.

πŸ““Key Concepts to LearnπŸ’‘

  1. Fully Burdened Costs: Ben emphasizes the importance of β€œfully burdened” costs. This means that all expenses connected to sales and marketing should be accounted for, from wages and benefits to Internet fees and travel expenses. Understanding fully burdened costs ensures that your department's budget reflects actual financial performance, eliminating surprises and aiding in better financial planning.

  2. Sales Operations in Sales Costs: It's crucial to categorize Sales Operations under the sales department in the P&L statements. Sales Operations includes various vital roles such as sales ops, revenue ops (lots of debate here), and sales engineers. Properly attributing these roles to sales can prevent misallocation and inaccuracies in your financial reporting.

  3. The Importance of Accurate SaaS P&L Construction: The foundation of your SaaS metrics lies in an accurately configured Profit & Loss statement. Ben breaks down the P&L structure into three main processes: setting up the accounting foundation, creating an accurate SaaS P&L with proper categorization, and, finally, calculating SaaS metrics. An accurate SaaS P&L is the backbone that supports reliable SaaS metrics.

  4. Department Coding and Revenue Categories: Proper department coding and clear revenue categories are fundamental. Ben highlights the need for a thoughtful chart of accounts and distinct revenue categories to ensure the financial data is as clear and actionable as possible. This clarity will help streamline decision-making and improve overall operational efficiency.

  5. Implications of Misallocation: Misallocating expenses can skew your SaaS P&L and, consequently, your SaaS metrics. By understanding and preventing these misallocations, you ensure your financial metrics are precise, promoting better strategic planning and operational effectiveness.

Ready to supercharge your SaaS business? Join Ben’s SaaS community with over 6,000 members for exclusive content. Don't miss out β€” maximize your SaaS knowledge today!

If you found this episode helpful, make sure to tune in to future episodes of SaaS Metric School to broaden your knowledge of essential SaaS metrics and finance topics.

Got any burning questions or specific metrics you'd like us to cover?

Drop us a line, and we'll do our best to address them in upcoming episodes.

Until next time, keep hustling and measuring those metrics!

Best regards,


Ben Murray
Host of SaaS Metric School

P.S. Don't forget to subscribe to our podcast and share it with your SaaS business buddies. Together, let's conquer the world of SaaS metrics!

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