How much did Expense Reduction Analysts spend on the development of internal-use software in 2023?
Expense_Reduction_Analysts Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | |
|---|---|---|
| Computers and Equipment | $ 20,332 | $ 18,030 |
| Furniture and Fixtures | 8,572 | 15,718 |
| Leasehold Improvements | 4,882 | - |
| Software | ||
| 10,659 | - | |
| Total Property and Equipment | ||
| 44,445 | 33,748 | |
| Less: Accumulated Depreciation | ||
| (14,167) | (14,978) | |
| Property and Equipment - Net | $ 30,278 | $ 18,770 |
NOTE 4 INTERNAL-USE SOFTWARE
Internal-Use Software is amortized on a straight-line basis over the estimated useful lives of the asset of 10 years. Software development costs of $46,350 and $35,430 were capitali
Source: Item 23 — RECEIPTS (FDD pages 58–215)
What This Means (2025 FDD)
According to Expense Reduction Analysts' 2025 Franchise Disclosure Document, the company capitalized $35,430 in software development costs for internal-use software on its balance sheets for the year ending December 31, 2023. This software is amortized over an estimated useful life of 10 years.
For a prospective franchisee, this indicates that Expense Reduction Analysts invests in its internal software. The capitalization of these costs suggests that the software is considered a long-term asset for the company. The company began depreciating the asset in 2023 when it was put into use, with a depreciation expense of $6,832 charged to operations for the year ending December 31, 2023.
The method of accounting for software development costs can provide insights into Expense Reduction Analysts' financial management practices. Capitalizing these costs and amortizing them over a 10-year period is a common accounting practice that spreads the expense over the useful life of the asset, rather than recognizing the entire cost in the year it was incurred. This can impact the company's reported profits and losses in the short term.