Salary and benefits aren’t treated exactly the same as capital expenditures. That’s how your purchase of a ten thousand dollar piece of electronics becomes a thousand dollar charge every ten years, no matter when the check clears. Which looks better on your companies balance sheet?

Have you ever tracked your time as a salaried software developer? I used to, and used to think it was a stupid exercise. Then I learned that my payroll costs were being capitalized against the project in development. Two years later when the project launched, it hit the books and started deprecating over seven years. That meant my company essentially had two years where my salary wasn’t on their books; when it hit, those two years were skewed over seven.

Have you ever had to differentiate between tracking time spent doing development and time doing support? Support is an ongoing operational expense that can’t be capitalized.

Same pot of money, vastly different ways to split it up.