Pamela FurstSenior Manager, Customer Success

Software Capitalization | How Jellyfish Automates the Cost Capitalization of Software R&D

Name: Software Capitalization | How Jellyfish Automates the Cost Capitalization of Software R&D
Uploaded: 2022-06-15T14:00:10+00:00
Duration: 1 min 42 s
Channel: Pamela Furst
Description: The video explains how manually capitalizing software R&D costs is difficult and introduces Jellyfish as a solution. Jellyfish ingests signals from…

15 Jun 2022 · 2 min

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1:42

The video explains how manually capitalizing software R&D costs is difficult and introduces Jellyfish as a solution. Jellyfish ingests signals from developer tool stacks and combines them with HR cost data to model each engineer's daily work. By correlating this data, the platform determines which portions of engineering effort are capitalizable, providing per‑engineer and organization‑wide financial figures. This visibility helps engineering leaders answer finance queries about effort allocation. The solution boasts a 100% audit pass rate with major firms (PwC, Deloitte, Grant Thornton, EY). The video directs viewers to a companion blog, a deeper explainer on the core metric "allocation," and the Jellyfish website.

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Manually capitalizing the cost of software R&D is challenging. Jellyfish can make it easy. So how does it work? The Jellyfish platform ingests signal from developer tool stacks to calculate a model of the day-to-day work of an engineer. This model can include HR cost data. By correlating HR cost information with an hourly understanding of which engineers are working on what projects, Jellyfish can accurately reflect the financial cost of any software development in order to provide a capitalizable figure for finance. Jellyfish breaks down the work of engineering on a per-engineer basis, and based on their tasks, can calculate the portion of work which is capitalizable. This can be rolled up into your entire engineering organization. When finance starts asking what and where engineering effort is spent, there's not always an easy answer. With Jellyfish, engineering leaders have visibility into everything their organization worked on in the past month, quarter, or year. And importantly, which components of this work is capitalizable for finance. Yes! Companies utilizing Jellyfish for R&D cost capitalization have had a 100% pass rate on audits of capitalized R&D expenses by firms such as PwC, Deloitte, Grant Thornton, and EY. Interested in learning more about Jellyfish cost capitalization? Check out our companion blog linked below. We also have a video explaining our core metric, allocation, in more detail. And be sure to visit jellyfish.co.