Capital Expenditure (CAPEX) Approval Process
Monday, March 2, 2015
Before taking a capital expenditure decision, take the best practice template, put it online, and have a streamlined execution process for your capital expenditure (CAPEX) approval process: makes it transparent to the decision-makers and the task-owners.
Business expansion is a route to financial growth only when you are able to control each capital expenditure aimed at improving your assets. When planning to invest a part of your revenue into improving and expanding your assets, you need more than a well-thought out strategy. The return for this kind of investment will be perceived over time, so you need to see where you want to be long in advance. Last but not least, you need a streamlined process of CAPEX tracking. And here is where an online capital expenditure approval solution can really help. They will be useful in the following cases:
- asset acquisition
- asset renovation
- asset lease
You can find a streamlined capital expenditure process in Comindware Tracker Finance and Administration solution. It’s ready-to-go and pre-configured for team work, and includes an automated workflow and collaborative features.
The streamlined process has main steps for capex approval: request creation, rejection, clarification and verification. The advantage of the streamlined process is that the request won’t be able to proceed to a higher step before all of the review steps are completed, because the item isn’t moved manually down the workflow: Comindware Tracker moves it automatically and creates a task to the appropriate assignee along with sending an email notification to them.
Note: Then it comes to expenses management, companies usually consider streamlining both CapEx and OpEx management. Learn more about these 2 types of operating expenses in this article – “What is CapEx and OpEx”.
An automated system doesn’t mean that your work becomes automated. You can discuss, accept, decline, or reject tasks and requests. The communication thread for online discussion stimulates team collaboration, at the same time helping to reduce the number of emails and meetings necessary to get more detail in order for the decision to be taken. The additional benefits of the online process result in reduced paperwork and time saved on the process approval.
With the Comindware Tracker Finance and Administration solution, you can see all of the capital expenditures in the form of configurable lists that give you an overall view of your investments, where each process has its status at the current moment. No need to make manual updates: while your team is working on the process, Comindware Tracker gets information from each task owner and keeps it in a single place. All the data is available online and stored either on your corporate server (if you chose the on-premise deployment) or in the Cloud (in case of the monthly SaaS subscription).
Role-based access to the data makes it possible to share the information of the capital expenditure process only with those whom it might concern. In case other departments of your company use other Comindware Tracker Solutions, they will only have access to the data they need for work. At the same time you can share data across the application when the need arises.
If you are still doubtful whether the online capex approval workflow process is easy to work with and will give you more visibility on assets acquisition and renovation, take an online tour or use a trial version of Comindware Tracker Finance and Administration Solution – that is more persuasive than any marketing can be.