[Verse 1]
Sarah's startup spends ten million on research this year
Revenue hits fifty million, math becomes crystal clear
Twenty percent of earnings fuel the innovation fire
But where does this investment live in books we require?
[Chorus]
Tech spending secrets, follow the trail
Two to twenty percent, industry scale
CapEx builds the castle, OpEx runs the show
Current year or future gains, that's how the dollars flow
R and D accounting, sort it left or right
Balance sheet or income, keep your numbers tight
[Verse 2]
Software giants allocate fifteen percent or more
Hardware makers budget less, maybe eight or four
Benchmark against your sector, not the whole parade
Gaming studios burn through cash that media companies saved
[Chorus]
Tech spending secrets, follow the trail
Two to twenty percent, industry scale
CapEx builds the castle, OpEx runs the show
Current year or future gains, that's how the dollars flow
R and D accounting, sort it left or right
Balance sheet or income, keep your numbers tight
[Bridge]
Patent pending means CapEx, asset on the books
Day-to-day experiments get OpEx second looks
Future revenue streams warrant capital treatment
Current operations research needs expense agreement
[Verse 3]
Cloud infrastructure costs hit the income statement fast
But building proprietary platforms? Those investments last
Three years or longer? Capitalize that spend
Under twelve months? Expense it, let the quarters blend
[Chorus]
Tech spending secrets, follow the trail
Two to twenty percent, industry scale
CapEx builds the castle, OpEx runs the show
Current year or future gains, that's how the dollars flow
R and D accounting, sort it left or right
Balance sheet or income, keep your numbers tight
[Outro]
Percentage of revenue, benchmark every year
CapEx versus OpEx, keep the logic clear