Within the software industry, the current governance norms have had over a decade to mature, respond to feedback, and innovate. Until recently, the focus has been on the developer ecosystem and not on orthogonal business units. Therefore, technical accountants have not had a seat at the software development table. As the Agile software development industry continues to mature, new mental models for interpreting regulatory compliance are needed to re-conceptualize accounting-based capitalization norms.

If you are struggling with capitalization standards, our two-day Agile Capitalization Workshop is the key to your peace of mind. This workshop will work to build a communication channel between technical accountants and Agilists. Although the solution space is emergent, our experts have developed and implemented an agile accounting solution that is defensible and based on the generally accepted accounting principles (GAAP) of objectivity, materiality, consistency, and conservatism. You will come away with concrete and specific insights that enable you to create simple working agreements between your CIO and CFO that are actionable, understandable, and true to the spirit of SOP 98-1 and ASC 350-40. More importantly, your revised policy will satisfy the regulatory needs of the technical accountants and won’t impede the progress of the large Agile software development transformation currently under way at your organization.


This workshop will benefit anyone interested in understanding more about Agile capitalization and the rules that govern it, especially technical accountants and the leaders of the Agile initiative, but also executive sponsors, product managers, program managers, portfolio managers, business analysts, and PMO directors.

Workshop Goals

Day One

The goals for the first day of this workshop are:

  • Identifying stakeholder goals for the capitalization of labor costs on Agile projects and programs, and using the information to compile questions to be addressed by end of Day Two.
  • Drafting a “test” for ensuring that the solution we design:
    • Is defensible, auditable, and consistently interpreted
    • Meets the needs of Technical Accounting, Finance, Auditing, and IT
  • Clarifying, understanding, and aligning on:
    • Rules that will be applied to accurately categorize labor hours for work delivered on Agile projects as either capital or expense
    • Roles related to administration, governance, and decision making (both between IT, Finance, and Technical Accounting, and within the PPM team)
    • Controls, including memorialization of approvals and time-stamped dates
  • Setting specific goals for Day Two, including ownership of action items to complete

Day Two

The goals for the second day of this workshop are:

  • Reviewing current rules and processes and identifying any gaps or inconsistencies in them that the workshop needs to address.
  • Reviewing and addressing any questions that need to be resolved before we design the Agile processes and controls.
  • Designing and documenting the Agile processes, roles, controls, and responses to questions
  • Drafting an Agile capitalization policy and roadmap.
  • Drafting the implementation plan, roles, and responsibilities, as well as plans for  training and high-level communication.

Joining Forces

SolutionsIQ is partnering with Pat Reed, founder of Agile consultancy iHoriz and former Senior Director at Gap Inc., to deliver this workshop. Pat is a thought leader in addressing key challenges that block large-scale Agile enterprise adoption, such as Agile Accounting, Budgeting, and Compliance, as well as Portfolio, Talent, and Performance Management. With more than 30 years of experience in designing and delivering cutting-edge technology solutions in the Criminal Justice, Criminal Intelligence, Entertainment, Retail, and e-Commerce Industries, Pat coaches executives, teams, and enterprises about how to leverage Agile to accelerate value delivery.

Additional Information

Pat Reed and Laszlo Szalvay are co-chairs of the Agile Alliance Agile Accounting Standard Program.  Pat has been working in this space for several years with former FASB commissioners to create a meaningful and defensible position.

Next Steps

If you’re ready for more information, please contact us below.