How to Satisfy Capitalization Tax Requirements Without Timesheets

Many tax laws governing capitalization were created before software was heavily relied on and when Waterfall was the standard project management methodology used. Nowadays, most software development teams use Agile methodologies, deliver work iteratively, and devote time to innovation. These types of efforts are often difficult to track using traditional timesheets. However, most enterprises still use them to track work performed by staff, and the data collected is used by finance, tax, and compliance teams to satisfy tax requirements.

In this white paper we discuss,

  • What do People Think About Timesheets?
  • What is the Difference Between CapEx and OpEx?
  • Capitalize vs Expense
  • FASB 86 Requirements
  • ASC 350-40 Capitalization Guidelines for Internal Use Software What are the Benefits of Capitalization?
  • Agile Capitalization Challenges
  • The Trouble with Timesheets
  • An Alternative Approach
  • Time vs Points or Counts
  • Transitioning from Timesheets
  • Transition Roadmap

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