As a SaaS company, what’s the correct way to account for merchant processing fees?
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Recurring conversation: “So, do you think merchant fees should fall under COGS?” - oh yeah for sure “So you’re putting them in COGS then.” - well i’d have to look but actually it’s really a lot more like opex if you think about it
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COGS are production costs. OPEX are non-production costs. Processing fees are production costs. Processing fees are not non-production costs. Processing fees are COGS.
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SEC seems to find this questionable. https://www.sec.gov/Archives/edgar/data/1262976/000119312507040015/filename1.htm …pic.twitter.com/5AOcTRjurk
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Is...this just an around the corner way of asking if people commit accounting fraud?
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It’s in a grey area - nothing definitive either way. Seems much more common to put it in opex.https://twitter.com/zackkanter/status/1197856025195556864 …
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Depends if you're building your company for yourself or others
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“Could we see your corporate code of ethics?” If they’ve done this then commissions are always tucked in the most creative places!
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Rehearsing wework, the musical?
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This Tweet is from an account that no longer exists. %{learnmore}
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This Tweet is from an account that no longer exists. %{learnmore}
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