Software Capitalization Template

Software Capitalization Template Overview
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Compiled in partnership with technical accounting firm, Principal Accounting Group (PCG), we've put together a comprehensive software capitalization template to help your team.

Who is this software capitalization template for?

Accounting and finance teams in organizations that need to capitalize software development, either for software for internal use or for software intended for sale. For more details on how to capitalize software effectively, read Numeric's deep dive on software capitalization.

How do you use our software capitalization template?

1. Procedures: Document and follow the outlined steps each month to ensure a consistent and thorough software capitalization process.
2. Project Listing: Keep track of relevant software development projects that are capitalizable.
3. Employees: Calculate capitalization by employee by project for the period.
4. Consultants: Calculate capitalization by consultant by project by period.
5. Amortization: Calculate amortization of eligible projects during the period.
6. Rollforward: Rollforward the capitalized software GL account for the period.
7. Journal Entries: Record relevant journal entries for software capitalization, including date, amount, and description.
8. Trial Balance: Monitor the monthly balances for the software capitalization accounts to ensure precision and consistency.

Why should teams use a software capitalization template?

• Efficiency: Simplify the software capitalization process, decrease manual effort, and ensure that software development costs are accurately recorded and reported.
• Accuracy: Reduce errors and discrepancies by adopting a structured approach to software capitalization.
• Transparency: Offer clear insight into software capitalization process, promoting informed financial decisions.
• Audit Trail: Keep a thorough record of all activities concerning software capitalization, crucial during audits and evaluations.

Incorporating software capitalization into your monthly close?

Leading tech companies, like WealthFront and Public.com, leverage Numeric for an easier monthly close— streamlining reconciliations between their workpapers and GL and ensuring visibility across their monthly close process. Get started for free.