It's important for SaaS companies to know how many people they employ in each department. A company should always be monitoring headcount to run efficiently, as over- or understaffing in any department can have repercussions across the company. It's best practice to record each employee's department an an HRIS system.

Headcount Formula

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Each department should map to one the 4 large expense categories for a business:

1. COGS (eg customer support)
2. Sales & Marketing (eg sales, marketing, revenue operations)
3. Research and Development (eg engineering, product, design)
4. General & Administrative (eg HR, recruiting, legal)