SaaS
Employee Stock-Based Compensation
Recognizing the monthly expense for employee stock options or RSUs.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Stock Compensation Expense | Expense (+) | 3,000.00 | - |
| Paid-in Capital (Stock Options) | Equity (+) | - | 3,000.00 |
💡 Accountant's Note
Common in tech startups. The value of the options given to employees is recognized as an expense, but since no cash is paid, it increases Equity.
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