Mogara - Automatic software R&D capitalization

Unlocking Efficiency and Accuracy in Software R&D Capitalization with Mogara

In the ever-evolving world of software development, staying compliant with tax regulations is crucial for the success and growth of companies. The recent change introduced by the IRS for software companies filing taxes in the US, mandating the capitalization of software development costs, has brought about new challenges for accounting and engineering leaders. However, Mogara, a San Francisco-based startup founded in 2022, offers an innovative solution to automate software R&D capitalization. In this article, we will explore the problem faced by accounting teams, delve into Mogara's cutting-edge solution, and examine the journey of its founders, Neha Shah, and Jay Gokhale.

The Pain of Manual Software R&D Capitalization

The IRS's requirement for software companies to capitalize their software development costs has created a significant burden for accounting and engineering leaders. Traditionally, the process involved reviewing projects over a quarter, determining capitalizable expenses based on the Internal Revenue Code, and sending time tracking surveys to engineers. These surveys were then collected and used by accounting to close the books.

However, this process is not only time-consuming but also prone to inefficiencies. Relying solely on issue trackers like Jira often leads to incomplete data, causing a frustrating cycle of reminders or resorting back to time tracking surveys. Accounting leaders find themselves chasing down engineers for accurate timesheets, which can hinder productivity and strain interdepartmental relationships.

Revolutionizing Software R&D Capitalization with Mogara

Mogara steps in as a game-changer, automating the capitalization of software R&D expenses. By eliminating the need for manual reporting, Mogara streamlines the process, saving time and ensuring accuracy. Let's explore some key features that make Mogara the go-to solution for accounting teams at software companies:

Seamless Integration: Mogara seamlessly integrates with your software team's Integrated Development Environment (IDE) and code repository, enabling effortless data collection. By plugging directly into the developer workflow, Mogara eliminates the need for engineers to fill out separate timesheets, saving valuable time and reducing the burden on both engineering and accounting teams.

Issue Tracking Integration: Mogara connects with popular issue tracking tools like Jira, facilitating easy categorization of capitalizable projects. This integration ensures that the necessary fields are filled in accurately, providing a reliable source of data for accounting teams. By leveraging existing workflows, Mogara maximizes efficiency and minimizes disruptions in the development process.

Payroll Data Integration: To determine capitalizable costs for software development, Mogara integrates with your Human Resources Information System (HRIS) payroll data. By combining payroll information with project data, Mogara provides a comprehensive overview of capitalizable expenses, eliminating the need for manual calculations and reducing the risk of errors.

User-Friendly Interface: Mogara offers a simple and intuitive wizard interface to set up and track capitalizable projects. The user experience is designed to be accessible to both accounting and engineering teams, ensuring a smooth collaboration and effective communication of project-specific information.

The Journey of Neha Shah and Jay Gokhale

The founders of Mogara, Neha Shah and Jay Gokhale, bring a wealth of experience and expertise to the table. Their combined backgrounds in product management and engineering have uniquely positioned them to tackle the challenges faced by accounting and engineering leaders.

Neha Shah, as a former product manager at Affirm, developed a deep understanding of the complexities involved in financial systems. Working on traceability and reporting for multi-million dollar daily money movements, she witnessed firsthand the struggles faced by accounting teams when trying to extract essential data from software teams. Neha's experience provided the inspiration to create a solution to bridge the gap between software development and accounting processes.

On the other hand, Jay Gokhale's journey in the software industry has been equally impressive. After being acquired as an early engineer at a startup called Index, Jay joined Stripe, a renowned technology company, where he spent nearly five years as a product engineer. During his tenure, Jay worked on various complex regulated fintech products, gaining valuable insights into the intricacies of software development and compliance.

Neha and Jay's paths converged when they met through a mutual friend. Their shared passion for technology, coupled with their diverse skill sets, ignited a spark of innovation. Recognizing the challenges faced by software companies in the wake of the IRS's new capitalization requirement, Neha and Jay saw an opportunity to leverage their expertise and create a transformative solution.

Drawing from their collective experience, Neha and Jay embarked on a mission to build Mogara, an automated software R&D capitalization platform. They envisioned a tool that would revolutionize the way accounting teams and engineering teams collaborate, making the capitalization process seamless, efficient, and accurate.

With over a decade of combined product development experience, Neha and Jay understood the nuances of building user-friendly interfaces for complex financial systems. Their goal was to simplify the often convoluted process of capitalizing software R&D expenses and provide accounting teams with a robust and reliable solution.

Throughout their careers, Neha and Jay had witnessed the impact of streamlined processes on companies' growth and success. They were determined to bring this level of efficiency to the software industry, particularly in the realm of R&D capitalization. Their shared vision, complemented by their ability to navigate the intricacies of software development, laid the foundation for Mogara's inception.

Since its launch in 2022, Mogara has garnered significant attention and recognition in the software industry. Accounting teams at software companies with 30+ engineers have embraced Mogara as the go-to solution for automating the capitalization of software R&D expenses. By alleviating the burden of manual reporting and bridging the gap between accounting and engineering teams, Mogara has emerged as a catalyst for enhanced collaboration and increased productivity.

Looking ahead, Neha and Jay are committed to further expanding Mogara's capabilities and reach. They plan to incorporate additional integrations with popular development tools, allowing companies to leverage their existing workflows seamlessly. Furthermore, they aim to enhance Mogara's analytics and reporting features, providing accounting teams with valuable insights into capitalizable expenses and optimizing tax compliance.


Mogara, founded by Neha Shah and Jay Gokhale, has revolutionized the way software companies capitalize their R&D expenses. By automating the process and integrating with existing software development workflows, Mogara has unlocked newfound efficiency and accuracy for accounting teams. The platform's seamless integration with IDEs, code repositories, and issue tracking tools streamlines data collection and categorization. Additionally, the incorporation of payroll data ensures comprehensive and precise determination of capitalizable costs. Neha and Jay's journey, fueled by their extensive experience and shared vision, has positioned Mogara as a leading solution in the software industry.