What is the best way to categorize software development costs for a new product in a startup? Should this be accounted as an asset or expense?

ram_nagarajan · ‎July 31, 2022

Rustler · ‎August 01, 2022

Create an expense account in the chart of accounts called R&D expense and post the expenses to that account

Rainflurry · ‎August 01, 2022

Beginning in 2022, you need to amortize these costs over a period of time. It's a significant change in tax law and you will want to contact your CPA to make sure you're recording them properly.

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What is the best way to categorize software development costs for a new product in a startup? Should this be accounted as an asset or expense?

What is the best way to categorize software development costs for a new product in a startup? Should this be accounted as an asset or expense?

What is the best way to categorize software development costs for a new product in a startup? Should this be accounted as an asset or expense?

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