Thorough capital expenditure (CapEx) plans should function at a consolidated level and also at a more granular level, tracking information like additions, improvements, asset classes, salvage value, and depreciation rates. If you have designed your processes correctly, you can hold your company’s department managers accountable for the capital expenditures in their respective areas.
OTHER BENEFITS INCLUDE
Fully integrated planning to understand how changes to CapEx management (adding and eliminating tangible and/or intangible capital assets) directly alter the income statement, the balance sheet, and cash flow statement
Compare planned capital expenditures to actuals at the detailed level, drilling across into external ERP or general ledger source systems. Stakeholders can investigate their costs and budget justifications with ease
Achieve greater accuracy and accountability by involving operational department managers
Review historical CapEx spending patterns to outline projections
Eliminate manual steps and benefit from the automation of capital expenditure calculations. Watch to see, in real time, the effect of changes to additions, depreciation rates, repairs, and maintenance on the bottom line
Create automatic depreciation calculations such as straight line, double declining balances, and sum of years, and use key performance indicators (KPIs) to evaluate capital expenditure assumptions
"With Prophix giving us a full understanding of our financials and how they relate to decision making, we hold our people accountable."