R&D Capitalization — an accounting practice that requires tedious time tracking for developers

R&D Cost Capitalization is a mandatory accounting practice where R&D costs are treated as investments instead of expenses (i.e. the cost of developing a particular release of your software). This benefits your company in a number of financial ways which means it is a commonly audited report, so it must be highly accurate. 

This data is not easily come by in an accurate way and requires tedious time tracking and manual reporting for both engineering managers and finance. 

Engineering OKRs  distribution of work

Ditch the timesheets and automate R&D Capitalization

Allstacks pulls data from existing developer tools and delivers an automated record of capitalizable work:

  • Allstacks' approach is defensible and consistent because we provide accounting-ready documentation of capitalizable work by project and by person
  • Validated across multiple data sources
  • Monitor cost capitalization allocations on live dashboards
  • Pull data as frequently as needed for historical analysis and reconciliation
  • Eliminate time tracking and manual reporting

“Having an automated system-of-record for capitalization of internally developed software costs is a huge asset for software companies that need to justify their investment in R&D without distracting teams from getting the job done. From my experience at GitHub and Datadog, being required to adhere to an archaic accounting rule to capitalize on these costs was a very heavy uplift for the Finance team and the R&D teams. Automating this work allocates thousands of hours each year to more mission-critical operational initiatives.”

Scott Buxton, Former Finance Leader at DataDog and GitHub

Allstacks Automated Report vs. Manual Reporting

Allstacks
  • ✅  Highly accurate and defensible using multiple data sources 
  • ✅  No manual overhead for the development team or managers
  • ✅  Pull reports as often as required
  • ✅  Monitor over-time
  • ✅  Flexible to match existing work processes
  • ✅  Access to raw data and links directly to Jira tickets 
Manual Reporting and Timesheets
  • ❌  Requires time tracking and process change
  • ❌  Difficult to reconcile historicals
  • ❌  Heavy burden on development team and managers
  • ❌  Difficult to audit

How much will you save automating your R&D Cost Capitalization? 

Calculate the value of savings when you eliminate time tracking and manual reporting hours. 

 

Input Your Company Details
  • Manual Reporting
  • Time Tracking
Reporting Overhead

The estimated annual cost to perform manual reporting for your organization.

$0
Accounting Overhead

The estimated annual cost to perform manual data collation and normalization.

$0
vs.
Allstacks Investment

Your estimated annual cost for Allstacks. Implementing Allstacks requires no development resources and insights are unlocked immediately.

$0
Savings

You would save money by purchasing Allstacks.

$0
Developer Time Tracking

The estimated annual cost of lost development due to employee time tracking.

$0
Accounting Overhead

The estimated annual cost to perform manual data collation and normalization.

$0
vs.
Allstacks Investment

Your estimated annual cost for Allstacks. Implementing Allstacks requires no development resources and insights are unlocked immediately.

$0
Savings

You would save money by purchasing Allstacks.

$0

Intelligence that gives context across your entire SDLC

Allstacks integrates with all your engineering tools from your source code to Slack to provide better visibility and context into how engineering teams and projects are doing with a single view customized to your product stakeholders.