SaaS

Employee Stock-Based Compensation

Recognizing the monthly expense for employee stock options or RSUs.

Account NameTypeDebit ($)Credit ($)
Stock Compensation ExpenseExpense (+)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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