What was the net internal-use software amount for Expense Reduction Analysts 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 capitalized and included in Internal-Use Software on the balance sheets for the years ended December 31, 2024 and 2023, respectively.
Depreciation expense of $15,982 and $6,832 was charged to operations in the years ending December 31, 2024 and 2023, respectively.
Source: Item 23 — RECEIPTS (FDD pages 58–215)
What This Means (2025 FDD)
According to Expense Reduction Analysts' 2025 Franchise Disclosure Document, software development costs of $35,430 were capitalized and included in Internal-Use Software on the balance sheets for the year ended December 31, 2023. Additionally, depreciation expense of $6,832 was charged to operations in the year ending December 31, 2023.
These figures indicate that Expense Reduction Analysts invested in internal-use software and began depreciating it in 2023. The capitalization of $35,430 reflects the costs associated with developing or acquiring software for internal use, while the depreciation expense of $6,832 represents the allocation of the software's cost over its useful life.
For a prospective franchisee, this highlights Expense Reduction Analysts' investment in technology and its approach to managing software assets. The FDD also states that Internal-Use Software is amortized on a straight-line basis over the estimated useful lives of the asset of 10 years. The development of internal-use software also shows a cash outflow of $35,403 in 2023.