Do You Include Sales Operations in S&M Expenses? | SaaS Metrics School | Sales OPS

Welcome back to SaaS Metric School with Ben Murray! In today's lesson, we dive deep into the crucial aspect of managing sales and marketing expenses within your SaaS business. Should sales operations (sales ops) be included in your sales and marketing expenses? This question sparked a meaningful discussion, highlighting the importance of a solid foundation in SaaS accounting.

Ben breaks down the fundamentals, emphasizing the significance of creating an accurate SaaS Profit and Loss (P&L) statement. From coding sales operations to attributing all expenses back to their respective departments, Ben stresses the concept of fully burdened expenses. Every aspect, from wages and taxes to travel costs, should be accounted for to avoid skewing the SaaS P&L and, consequently, the SaaS metrics.

Sales departments encompass various functions, including sales ops, rev ops, new business teams, and more, each requiring meticulous expense tracking. Similarly, marketing departments involve operations, branding, video production, and other components, all contributing to the overall expenses. Neglecting to include these expenses accurately can lead to misleading SaaS metrics, impacting strategic decision-making.

Ben outlines a three-step process to ensure precision in SaaS accounting and metric calculation. First, review the accounting foundation, ensuring clarity in the chart of accounts and department coding. Next, create the SaaS P&L with proper revenue categories, COGS departments, and OPEX profiles. Finally, calculate SaaS metrics based on this foundation, recognizing that skipping any step can compromise the accuracy of the metrics.

Join us as we delve into the intricate world of SaaS metrics and learn invaluable insights for optimizing your business performance. Don't miss out on this enlightening lesson from Ben Murray, your guide to mastering SaaS metrics!

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