7 Tested Tips For Managing Capital Project Expenses
Large amounts of company money flow through capital project management. From expanding company buildings, to research and development, to machinery purchases, Capital Expenditures (CapEx) account for a large chunk of the annual budget. They’re also notoriously difficult to manage, with CapEx projects often running over budget and behind schedule. If that sounds like your company, it’s time for a change. You deserve accurate, efficient capital project management and detailed reporting on planned and actual cost.
Like many business processes, CapEx management is easier when you’re using an automated system. A reliable automation system makes implementing the other tips for managing capital projects a whole lot easier. To help smooth out the transition, look for a system like NextProcess that will integrate seamlessly with your existing ERPs.
2) Consolidate Projects
It’s hard to keep track of funds if you can’t track all your CapEx projects using one system. Multiple spreadsheets or different departments keeping information in different programs will make getting an accurate view of where money is going difficult or impossible. In contrast, Capital Management Software consolidates all the information for you automatically.
3) Standardize Processes
When different people set up spreadsheets or use different programs to track capital expenditures, it’s hard to keep things consistent. It’ll be much easier to track funds and use data if you’re managing all the information with the same software program. But just because you pick a standard program doesn’t mean you need to sacrifice customization. NextProcess’ expert team will work with you to create a system tailored to your processing needs.
4) Enable Searching
Without a software program that tracks all your CapEx projects in one place, it’s impossible to search for information across all your projects at once. But with a web-based SaaS solution, records are just a click away. Authorized users get convenient access anytime and anywhere. And because you get to configure custom security protocols, you can block unauthorized access to your records.
5) Improve Visibility
Knowing where your company’s money is right now is vital. And for budgeting and financial forecasting to be the most accurate it can be, you also need records of past spend. CapEx software automatically stores records of past projects as well as current information. And having visibility into all your information, past and present, makes planning and managing projects much easier.
6) Budget Ahead
When you simplify capital project management and make accessing accurate data easy, it empowers you for more accurate budgeting. And a quality CapEx management system will include budgeting software with configurable levels of detail to meet your organization’s particular needs and mesh with your structure. You’ll be able to see how well your capital projects are sticking to budget now and work with more accurate information when planning ahead.
7) Team Collaboration
Capital expenditure isn’t something that concerns just one department or team. With CapEx software, you can share information easily with all the people who need to be kept in the loop. And since the system updates in real-time, any changes or approvals made can be seen by all other users immediately.
Want to see how NextProcess’ Capital Management Software can speed up, streamline, and ease collaboration for all your capital projects? Contact us and we’ll set up a free demonstration.