TL;DR Mogara automates capitalizing software R&D expenses (now required for all software companies filing taxes in the US).  Let’s talk if you do accounting at a software company with 30+ engineers and are responsible for R&D capitalization.

Problem

The IRS made a change that impacts all software companies filing taxes in the US for the 2022 tax year and beyond: everyone needs to capitalize their software development costs.

For most accounting and engineering leaders, this is painful news: they’ll review projects over a quarter, determine what’s capitalizable based on the Internal Revenue Code, and send time tracking surveys for engineers to fill out on a quarterly basis. The time tracking surveys will need to be completed in order for accounting to close the books.

Relying solely on issue trackers like Jira is not much better. Controllers say the fields they need aren’t reliably filled in, so they end up in a painful spiral of reminders - or falling back on time tracking surveys.

Solution

Mogara automates software R&D capitalization. Every software company filing taxes in the US now needs to capitalize software R&D, representing a $13B opportunity for a process that’s currently manual reporting.

💻 Integrate with your software team’s IDE(s) & code repository for data collection

⚙️ Connect with issue tracking tools like Jira for easy categorization

💸 Tie in payroll data from your HRIS system to determine capitalizable costs for software development

🔢 Set up and track capitalizable projects with a simple wizard interface

How’d we get here?

We’ve built simple user experiences for complex financial systems.

Neha worked as a product manager at Affirm building traceability and reporting for the company’s multi-million dollar daily money movements. She saw how tough it could be for the accounting team to get the data they needed from software teams.

Jay worked at Stripe as a product engineer for nearly 5 years after getting acquired as an early engineer at a startup called Index, where he worked on several complex regulated fintech products.

We met through a mutual friend last year and hit it off. We share a love for good pizza, making memes of Jay’s kid, and music. Together, we have over a decade of product development experience and we’ve been at companies from the early stages all the way through preparing for IPO.

Ask

If you do accounting at a software company with 30+ engineers and are responsible for R&D capitalization, let’s talk.

Drop us a note at founders@mogara.app or sign up on our website.