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A few months ago, we retired our last pieces of infrastructure on DigitalOcean, marking our migration to AWS as complete. Our journey was not your regular AWS migration as it involved moving our infrastructure from classic VMs to containers orchestrated by Kubernetes. Lack of modern cloud features and managed services.
The gist of it is that Cost of Revenue includes costs that go into providing your Software as a Service. It’s up to you if you want to group up all software in one category under Cost of Revenue, or several software categories under hosting, support, and service delivery. Jason Cohen breaks down the question in his Quora post.
This is where you record all of the costs that go to providing your service, such as hosting and customer support payroll. If you have sales from Professional services, you’d want to create two sets of Cost of Goods Sold?—?one This makes it pretty easy to see how the chart of accounts would look like: Bonus. Engineering. Engineering.
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