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In the wake of a raging pandemic, your capital expenditure, more widely known as Capex, needs a mega push to get your business back on track.
Therefore, in this blog, we have covered the essential aspects of Capex and provided our best PowerPoint templates to get you started.
So let’s dive right into it!
What is Capex?
Underestimating or overestimating the costs can land you in a sticky situation. And the reason it happens is due to a lack of knowledge about Capital expenditure, its importance, and how it is different from other ordinary or distinct expenses.
Capex means investing in fixed assets that last. The keyword here is ‘investment’ rather than ‘expenditure’ according to the balance sheet. Higher Capex is regarded as the company’s farsightedness towards its future growth. Capital expenditure determines and showcases the overall financial health of a company.
Not to be confused with Operating expenditure (Opex), which, unlike Capex, is denoted in the income statement and entails ordinary business operational expenses such as electricity bills or salaries.
It might sound complex, but it is a simple concept that can be aced perfectly with proper planning.
Suppose you want to buy a building to establish a branch office for your company. It will take you so much more than just finding the right ‘money’ deal.
You need to understand it’s not just about getting a reasonable price for the property, for it can prove to be devastating for you in the future. Here’s how:
- Without proper planning, your Capex can turn out to be a lousy investment with additional costs and high maintenance.
- You can end up in a pickle by choosing the wrong geographic location for your office or inappropriate pieces of equipment, etc.
- Neglecting Capex planning can lead to outdated IT infrastructure or worse, none at all. And we all know its importance for a business.
This is where Capex planning saves the day!
- It helps you determine and establish a set limit for your investment budget and secures the company from overspending or underspending.
- It scrutinizes every aspect of your fixed assets closely. Whether there’s a need to repair, upgrade, or buy more fixed assets like a warehouse or IT infrastructure, Capex planning is the key.
- It draws a clear line between Capex and Opex. Through planning, you can differentiate between them and operate smoothly.
- It helps set and realize a long-term vision for your organization. With this understanding, you can build upon and around it.
- It allows you to make informed decisions like whether an asset is profitable and long-lasting or not.
Capex planning process
As you gain a basic understanding of what Capex is, here’s how to plan it in 6 steps:
- Gathering and consolidating data
- Identifying the need for a capital asset
- Setting a budget
- Analyzing if the purchase has a lifespan of over a year
- Going through the approval path comprising various department heads and experts, then final approval from the CEO or chief executive.
- The actual purchase
10 templates to fortify your Capex strategy
As rightly put by Peter F Drucker, father of modern management and economist - Unless commitment is made, there are only promises and hopes; but no plans. So to get you going with your company’s Capex planning, we have incorporated our best PowerPoint templates. Go ahead and take your pick!
Assess your organization’s long-term requirements by employing this PowerPoint template. You can use this template to differentiate between capital and operational expenses. Download it to prepare a foolproof financial plan for your company.
With the help of this template, you can state the importance of a bottom-up approach in an organizational workflow. Display the appropriate time frame for your planning by taking the aid of this PPT template. Go ahead and click the download link!
Track your capital expenditure appropriately by taking advantage of this PowerPoint template. Determine the significant steps for effective Capex planning by utilizing this PPT template. It will help you set and achieve your long-term business objectives.
This template allows you to prioritize objectives. You can lay out practices that ensure the successful management of Capex. Focus on capital budgeting and conduct the timely evaluation by taking the assistance of this PowerPoint template. Download the customizable template now!
This is another template that lets you study the process involved in Capex planning extensively. Using this template, you can plan, generate, evaluate, select, execute, and control. Without waiting any further, click the download link and get going.
Consolidate your Capex planning report in an organized and structured manner with the assistance of this PPT template. This template will help you make your report easily accessible for your audience. So download this editable template and just add your data to it.
This is yet another template designed to make your task easy and efficient. Incorporate the template to develop your budget and capture the correct data. With this PPT template, inculcate transparency in your approval process. Download the template by just clicking on the link mentioned below.
Explore the wide range of elements of a Capex approval process using this PowerPoint template. You can build the financial reserves required for your company by taking the help of this PPT template. Without further ado, click the download link!
Draft a suitable Capex plan for your enterprise by taking the aid of this PowerPoint template. Evaluate the fixed assets that require procurement or upgrade by utilizing our PPT template. It is professionally curated to handle capital expenditure planning efficiently.
Provide a detailed description of your Capex planning process with this PPT template. You can outline the summary in an attractive yet informative way using this PowerPoint template. Download our adaptable template to illustrate your statistics and logistics clearly and concisely.
Capex includes tangible and long-term investments, thereby putting a high price tag on them. These investments automatically demand undivided attention to avoid any future mishaps. Therefore, our templates are designed explicitly to help you imbibe the process successfully. So start your journey with smart investments by taking advantage of our templates now.
P.S: To manage your budget more meticulously, explore our top templates featured in this blog!