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?
Who is Participating?
I wear a lot of hats...

"The solutions and answers provided on Experts Exchange have been extremely helpful to me over the last few years. I wear a lot of hats - Developer, Database Administrator, Help Desk, etc., so I know a lot of things but not a lot about one thing. Experts Exchange gives me answers from people who do know a lot about one thing, in a easy to use platform." -Todd S.

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.

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

Experts Exchange Solution brought to you by

Your issues matter to us.

Facing a tech roadblock? Get the help and guidance you need from experienced professionals who care. Ask your question anytime, anywhere, with no hassle.

Start your 7-day free trial
JohnBusiness Consultant (Owner)Commented:
Thanks and I trust you are now clear on SaaS as Expense.
It's more than this solution.Get answers and train to solve all your tech problems - anytime, anywhere.Try it for free Edge Out The Competitionfor your dream job with proven skills and certifications.Get started today Stand Outas the employee with proven skills.Start learning today for free Move Your Career Forwardwith certification training in the latest technologies.Start your trial today
Cloud Computing

From novice to tech pro — start learning today.