How tech should be accounting for software costs

New regulations and licensing have changed software cost accounting

Business woman study financial market to calculate possible risks and profits Business software isn’t new – but even tech companies still struggle to account for their software costs correctly.

That’s because new regulations and software licensing options have changed the way that businesses should account for their software costs. “Technology continues to evolve, software has evolved and the way that companies are offering their software has changed,” said Grant Thornton Accounting Principles Partner Lynne Triplett.

Triplett explained that businesses have to consider different accounting models when software is for internal use, sale or research and development. “It’s not optional to capitalize costs if you meet the criteria that the costs need to be capitalized, and then amortized – and of course along with that comes an impairment model,” Triplett said.

For more about how tech companies need to understand their software costs, download our viewpoint on accounting for software costs or listen in below as Grant Thornton Audit Partner Stephen Legg interviews Triplett on the latest considerations:


Lynn Triplett Lynne Triplett
Accounting Principles
T +1 312 602 8060

Stephen Legg Stephen Legg
Audit Services
T +1 415 365 5407