this is an accounting question. Rent is not a marketing expense and neither is health insurance. But salaries are. As is any SaaS you buy, from hootsuite, opt

this is an accounting question. Rent is not a marketing expense and neither is health insurance. But salaries are. As is any SaaS you buy, from hootsuite, optimizely, etc. If you're on accrual accounting (and as a startup, why? no reason to do this until you're much farther along) you recognize the expenses in the month you have them, but the revenue is divided by 12. this is the math the post is describing and why SaaS businesses are so hard--early on the metrics look terrible because the revenue is deferred but the expenses are not.