Capital Expense Planning: Accurate Reporting of Your Assets
How is Your Company Spending Money?
Capital expenses (CapEx) – your investment in assets that have multi-year value – are vital to your organization and crucial for you to track, for accounting and reporting purposes. Due to depreciation, asset relocation, or the sheer number of capital expenses in an organization, it can be hard to track the actual value of your assets.
With Prophix’s integrated capital expense planning capabilities, you can track the true value of your capital expenses, and use that information to maintain profitability throughout your different departments.
Learn how Prophix helps you plan for your capital expenses.
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Prophix Capital Expense Planning: Insight into Your Assets
Improve Your CapEx Management
Simple adjustments to your asset listings can have a big impact. With Prophix, you’re able to understand how changes to CapEx management, like adding and eliminating tangible and intangible capital assets, directly impacts your income statement, balance sheet, and cash flow statement.
Accurately Calculate Depreciation
While tracking depreciation can be done in a spreadsheet, one error could impact every calculation. With Prophix, you can create automatic depreciation calculations such as straight line, double declining balances, and sum of years. You’re also able to use key performance indicators (KPIs) to evaluate capital expenditure assumptions.
Monitor Actual Expenses
Plans change, so it’s important to keep track of actual expenses, instead of projected ones. With CapEx management capabilities, you can compare planned capital expenditures to actual ones at a detailed level, using multiples sources from an external ERP to your general ledger system.
Managers are often the ones held accountable for capital expenses in a company. So, they need an easy-to-use tool to help them track how and why money is spent. Prophix allows stakeholders to investigate their costs and justify their budgets, achieving greater accuracy and accountability by involving operational department managers.
Are there types of capital expenditures impacting your company’s profitability? With Prophix, you can review historical CapEx spending patterns, identify potential issues, and outline projections for the future.
Eliminate manual steps and benefit from the automation of capital expenditure calculations. Prophix gives you the insight needed to see how adjustments to additions, depreciation rates, repairs, and maintenance affect the bottom line and impact your company.
Do the results of Capital Planning automatically tie back to the corporate financial data for variance reporting?
Yes. Capital expenditures can be planned at the relevant level of detail, including things like start date, service date and asset class. The planned expenditures can be reflected in the Income Statement (Depreciation Expense), the Balance Sheet (Accumulated Depreciation and Asset Value) and the Statement of Cash Flows (cash outlay for the asset purchase).
Do you have the ability to plan for leased assets?
Yes. The Detail Planning Manager lets you create Actions to automate planning of leased assets. For example, if your company had to plan and track leases on company vehicles, you can create actions for vehicle type, maintenance costs, and lease expiry.
Can you select from a list to determine the method of depreciation and can the list be edited?
Yes. Prophix allows you to enter the depreciation methods you would like to use (for example straight-line, double declining balance, units of production, sum of years digits), and have it available for you to choose and apply anywhere in your project.
Discover How to Make the Most of Your Forecasts
Prophix saves your company time and gives you data needed to accurately plan for your capital expenses. You’ll ensure your money is spent the right way and each expense is accurately reported.