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Boost Team Accountability With Automated CapEx Processes
Not too long ago, businesses relied on spreadsheets, email communications, and even paper ledgers to manage capital expenses (CapEx). In some companies, that might still be your go-to method for keeping track of CapEx. Those methods don’t give you the control you need to effectively manage capital expenses in the modern business world.
CapEx is notoriously difficult to manage. According to McKinsey & Company, overruns of CapEx “estimates frequently exceed 50 percent … in both the public and private sectors. Overruns in terms of time and/or money are costly to the company, but could often be avoided if there was an easier way to manage and coordinate CapEx projects.
That’s where capital expense management software comes in. Like other Business Process Automation (BPA) software, CapEx software streamlines key financial processes. It gives you increased control over CapEx management, saving time and money.
Does Your Company Handle Lots of CapEx?
If your company manages multiple or high-value CapEx expenses, that’s a lot to try and keep track of on paper or in spreadsheets. The more projects you’re trying to manage that way, the harder it will be to keep everyone involved on the same page, ensure projects stay on track, and keep management up to date.
If that sounds like your company, then you’ll benefit from capital expense management software. This software consolidates all CapEx management in one digital location. When you choose to work with a Software-as-a-Service supplier, you’ll get an easy-to-use system that’s easily accessible by everyone involved in CapEx management. This empowers your CapEx teams and management to communicate, collaborate, and manage CapEx projects in real-time.
Do You Want to Make Budgeting Easier?
One of the big challenges with CapEx projects is keeping within budget. NextProcess’s Capital Project Management Software includes capital budgeting tools with configurable levels of detail.
Your budgets are as unique as your company, so there isn’t a one-size-fits-all approach to effectively managing CapEx budgets. That’s why NextProcess software is highly customizable, to ensure that it meets your company’s exact needs. Our team of experts will work with your company to tailor the CapEx system to your individual processes.
Are You Already Using an ERP System?
If your company already uses an ERP system like MS Business Central, SAP, or NetSuite, then integrating CapEx automation software can add more robust budgeting and CapEx management features. NextProcess software integrates seamlessly with your existing ERPs, as well as with the other software solutions that we offer.
On its own, an ERP is more tailored for high-level company management rather than a detailed focus on specific processes like CapEx. When paired with business process automation software, you’ll enjoy improved oversight and control over specific financial processes. The BPA software also provides tools specific to the process you’re automating, like budgeting tools designed for efficient CapEx management, that ERPs don’t typically offer.
Do You Want to Manage CapEx and OpEx Separately?
In small companies, it might make sense to manage capital expenses and operational expenses (OpEx) together. But in larger organizations or growing companies, keeping these two categories of expenses separate makes them easier to manage.
Operational expenses are the everyday type of business purchases handled through a procurement department. A procurement software system that generates purchase orders makes managing OpEx simple. Capital expenses are typically more involved, often requiring research and collaboration between departments. They are depreciating assets that are tax deductible over several years and may involve projects that take months or years to complete. CapEx management requires different tools than OpEx management, making software specifically designed for CapEx the best way to manage these types of expenses.
Does Your Company Have a Working CapEx Process?
Even if your company has a CapEx process that works well, it might still benefit from implementing capital expense management software. In fact, having a solid CapEx management process already in place makes automating easier than it otherwise would be.
SaaS software like NextProcess is highly configurable. If you already have a process in place that works, you can customize the software to support and enhance that process. You won’t have to change your basic processes, but you will get robust tools to make CapEx management even easier and more effective.
Is Control, Review, and Oversight A Priority?
If you want easy oversight and control over capital expenses, then CapEx software makes that very simple. All the project and expense information is stored in one centralized, digital location. All communication goes through the software, so people involved don’t have to worry about missing important messages.
Centralized information management makes it easier for managers to log in and check the status of projects. CapEx software increases accountability and often enables people involved in CapEx management to catch problems as they’re developing or before they become major issues. The software system also makes post-implementation review easier.
Conclusion
Does your company really need capital expense management software? If you want the best tools for managing CapEx, then the answer is yes. Capital expense BPA software makes budgeting easier, streamlines CapEx management, and dramatically improves oversight.
With NextProcess software, you can implement capital expense management software that enhances CapEx management and streamlines the whole process. It’s highly configurable to fit your company’s exact needs, whatever the scale of your operations. In addition, you can implement CapEx software on its own or as part of an end-to-end software solution covering budgeting, procurement, accounts payable, and more.
You can see how our software works—no strings attached—when you contact us to schedule a free demo. We’ll be happy to answer your questions and show you the software in action, so you can see exactly how it can help your company manage CapEx more effectively.