is subscribing to SaaS considered leasing

this is likely accounting related query.  since we dont own assets in SaaS, is it treated as leasing?  how do people out there treat it & by what accounting standard?
sunhuxAsked:
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JohnBusiness Consultant (Owner)Commented:
Subscribing to Software as a Service (SaaS) is just expense. It is not a lease in the sense of a long term contract. You subscribe and pay monthly (quarterly, annually) and at the end of the payment term, you can stop paying and stop using the software.

It is just Software Expense on your books of account.
David FavorLinux/LXD/WordPress/Hosting SavantCommented:
As John said, Just a simple expense.
JohnBusiness Consultant (Owner)Commented:
@sunhux - Did you get what you needed here?
Ensure Business Longevity with As-A-Service

Using the as-a-service approach for your business model allows you to grow your revenue stream with new practice areas, without forcing you to part ways with existing clients just because they don’t fit the mold of your new service offerings.

sunhuxAuthor Commented:
last question:

what's the closest accounting standard this would be?
GAAP (Generally Accepted Accounting Principles)?
JohnBusiness Consultant (Owner)Commented:
SaaS is just a very standard expense.  Kind of Accounting 101.  GAAPs deal with more sophisticated questions.

https://businessdegrees.uab.edu/blog/5-important-principles-of-modern-accounting/

SaaS would be the same as a utility bill, stationery expense and so on.

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JohnBusiness Consultant (Owner)Commented:
Thanks and I trust you are now clear on SaaS as Expense.
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