(Principal at Strategic Capital Corp) | Aug 24, 2013
I have a client who is paying an outsourced development firm on a monthly basis to develop a proprietary software platform. Total time will be 24 months at #240K total, and then contiued maintenance updates and additional development as needed. My question is on how the monthly amounts should either be expensed or capitalized or partiall both given the ongoing development and the fact that the 'finished' product wil be used for many years during and after initial development? Thoughts?