Accounting in Lifescience

Accounting in Lifescience

Accounting in the life sciences sector is complex, given the industry’s high research and development costs, long product development cycles, and regulatory requirements. Key considerations include capitalizing vs. expensing R&D expenditures, managing grants and funding, and navigating licensing or collaboration revenue. Companies must also handle strict compliance with regulatory bodies (e.g., FDA, EMA) and manage deferred revenue for partnerships or product pipelines. Effective accounting helps life sciences companies maintain transparency, attract investors, and allocate resources strategically while navigating the high-risk, high-reward landscape of innovation