Software Capitalization

ASC 350-40 compliance without the spreadsheet gymnastics

Engineering time is your biggest expense, but capitalizing internal-use software requires tracking which projects are in what phase, computing eligible costs, and posting monthly amortization. All manually.

Software Capitalization — ASC 350-40

3 active projects

Capitalized

$89.5K

Amortization

$7.5K/mo

Net Book Value

$62.1K

Useful Life

36 mo

Iskra AI Engine

Development

$42,800

$3,567/mo amort

Portal V2

Development

$28,500

$2,375/mo amort

Data Pipeline

Post-Impl

$18,200

$1,517/mo amort

How it works

StartOS tracks project phases (preliminary, development, post-implementation), pulls eligible hours from your timesheets, computes amortization schedules, and posts JEs automatically. Balance sheet and P&L reflect capitalization in real time.

  • ASC 350-40 three-phase project tracking
  • Timesheet integration for eligible hour allocation
  • Automatic amortization schedule generation
  • Monthly JE auto-posting (GL 1400/1410/6440)
  • Balance sheet capitalized software asset tracking
  • P&L amortization expense with prior-period comparison
  • Dashboard KPIs: capitalized total, amortization rate, net book value
  • Close checklist integration for period-end posting

Three steps to get started

1

Define your projects

Create capitalization projects and assign them to ASC 350-40 phases. Set useful life and amortization method.

2

Allocate eligible costs

Pull hours from Toggl or Harvest timesheets. Only development-phase time is capitalized.

3

Automate amortization

Monthly JEs post automatically. Close checklist ensures nothing is missed.

Works with

TogglHarvest

From first dollar
to first audit.

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