Mktg SIG: Funny Money
Accounting Issues in the Software Business.
Funny Money: Accounting Issues in the Software Business
To anyone who has managed profitability for traditional manufactured goods, the software business may seem incredible: write a few thousand lines of code, shrink-wrap a bunch of CDs, and book millions in sales at margins approaching 100%. It's like printing your own money - or is it?
There is certainly good money to be made in software and Internet-related businesses, but there are many unique accounting issues to address that don't really come up for businesses that deal with more tangible products. Sure, capital requirements are low, but with high costs for ongoing development, testing, and ongoing support, what is the real cost of goods? When can you - or should you - recognize revenue for products that take months to install and configure, or that never show up on a loading dock because customers download them directly? And what are the consequences if you don't learn how to manage the books in your "virtual industry"?
Hear answers to these and other vexing questions about money management in this unusual meeting that's sure to entertain as well as enlighten. Instead of a traditional slide presentation or panel discussion, you'll be treated to a lively, animated mock consulting session in which a small business owner (Jim Horan) gets guidance from a financial consultant (Danny Wallace) on how to safely navigate through the challenging issues of accounting in a "soft" industry. You'll laugh a lot - and learn a lot.
About the Presenters
is author of the best-selling book The One Page Business Plan and President of The One Page Business Plan Company, a rapidly growing international consulting company that also offers a web-based strategic planning and performance management software application as an ASP. In a past life, Jim was a senior financial executive with Bayer Pharmaceuticals and Shaklee Corporation. For the past 10 years, Jim was President of the CFO Consulting Group, which provided strategic business advisory services to entreprenuerial and SME (small to medium enterprise) markets.
is a CPA and a Software Partner in the Audit and Business Advisory Services group of PricewaterhouseCoopers, one of the world's top consulting firms. With over 17 years of accounting experience, Danny has served companies ranging from emerging businesses to multi-nationals. His clients have included public companies such as Autoweb, Digital Impact, Evolve Software, ImproveNet, and Legato Systems, as well as many private software companies.
Mitchell Park Community Center
3800 Middlefield Road
(between Meadow Drive and Charleston Road)
Palo Alto, CA
7:00-7:20pm announcements and introductions
7:20-8:30pm presentation and discussion
$10 at the door for non-SDForum Members
No charge for SDForum members and students with ID
No registration required
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