CapEx or Capital Expenditure is a business expense incurred to acquire or upgrade an organisation’s fixed assets such as expenditures towards machinery, equipment, plant, property, etc.
CapEx Approval Process
Since capital expenditures of an organisation account for a huge cash outflow, it is an integral aspect of any organisation. A capital expenditure requires decisions at multiple levels. Managing and tracking CapEx requests and approvals can be daunting especially because of the lengthy email and paper trails. Furthermore, it can prove to be costly for the organisation as it can lead to loss of critical information and control. Hence, the CapEx approval process can be a complex activity.
For any organisation, it is critical that the CapEx approval process runs smoothly and flawlessly. A smooth process can streamline the entire process and provide transparency to the team members as well as decision-makers.
CapEx Approval and Management Challenges
Some of the common CapEx approval and management issues that organisations face are:
Most of the processes are manual
Lack of standardisation
Lack of communication and unproductive emails
Unnecessary delays due to inaccurate request routing
Duplication of request
Errors in the request
How We Can Help You Streamline and Manage CapEx Approval Process?
Automating the CapEx approval process ensures a faster process and lesser errors as compared to the manual CapEx approval process. Besides, it also ensures effective communication leading to lower operating expenses for the organisation. It further boosts productivity and adds value to your business.
An effective CapEx approval solution can benefit an organisation in numerous ways. Some of which are:
It helps team members to easily create CapEx request forms and forward it to the top-level management for approval.
It helps avoid approval delays by timely notifying the managers and CFOs about the approvals.
It enables to record and monitor CapEx budget request based on the actual spend.
It helps to monitor and trackback the CapEx performance commitment in terms of the expected return on investment, cost reduction, etc.
It helps to configure the CapEx system with the assets management system.
It assists in optimising the day to day cash outflows of the organisation.
It enhances the efficiency, accuracy and transparency of the CapEx approval process.
It enables transparency in the organisation and aids in easy and quick decision making.
Got a Project? Let's Talk
Whether you are planning or are already in the midst of your transformation journey,our experts can help you accelerate your transformation initiatives.