Maximize R&D tax savings with DX’s CapEx reporting

Tracking R&D for tax benefits is a crucial cost-saving measure for engineering and finance leaders, but the process is tedious, pulling both away from core priorities. At the same time the financial gains are too significant to ignore.

CapEx reporting can unlock major savings. Think of an engineering org with 2,000 people and $200 million in annual R&D spend. If 40% of that work can be capitalized, that’s $80 million eligible for tax credits. At a 10% credit rate, the company can retain $8 million—real savings that hit the bottom line.

You want to reap these benefits but need an easier way to produce the necessary documentation. Enter CapEx reporting – a DX capability that automates CapEx tracking from project management tools, delivering fast, accurate, audit-ready reports. Engineering and finance teams get the data they need to maximize tax savings—without the manual grind.

CapEx reporting in DX

Many teams rely on methods like spreadsheets and timecards to track R&D work. These manual processes lead to incomplete data, errors, and delays, pulling engineers away from product and leaving finance teams scrambling to close their books.

DX’s CapEx reporting automates everything, pulling data directly from JIRA. Custom categorization rules provide a framework for keeping all of your software development projects tagged as CapEx or non-CapEx—whether it’s product development or maintenance work.

For engineering teams, this means more cycles spent building products. For finance teams, it guarantees timely audit-ready reports.

Here are the key capabilities of DX’s CapEx reporting that streamline R&D capitalization:

Automatic data ingestion: DX ingests your project management data and allows you to set up conditional logic for tailored categorization. The flexibility to configure CapEx-only reports ensures granular control over what you report.

Customizability: DX supports categorization based on custom criteria. You can create as many CapEx rules as you need to reflect your organization’s unique workflow. Whether you’re using custom fields, labels, or specific categorization rules, DX has you covered.

Audit-ready reports. DX provides several calculation formulas that you can choose to comply with different standards. Each of these calculation formulas have been reviewed by CPAs and provide full auditability for tax auditors.

Looking to explore further?

Whether you’re a current DX customer or new to the platform, DX’s CapEx reporting can add significant value with minimal effort, helping your company save time and resources.

If you’re interested in learning more about CapEx reporting in DX, schedule a demo here.