CapEx (short for capital expenditures) is the money invested by a company in acquiring, maintaining, or improving fixed assets such as property, buildings, factories, equipment, and technology.
Drawbacks of managing CapEx Process Approvals manually:
- Maintaining the CapEx process approvals manually is a tedious and cumbersome practice. You need to assign executives for monitoring the capital input, for organizing the structures and to ensure the operation and maintain records.
- The project estimation or infrastructure estimation has to be ascertained, fund allocation from the right cost center or budget head to be given top priority and this can be error-prone when done manually.
- Misappropriation of funds may take place when the CapEx process is managed in multiple spreadsheets or when different departments keep information in different formats. Each and every step has to be monitored diligently in order to have a streamlined flow of funds for the required project.
Benefits of Cflow’s CapEx Process Approvals Solution:
Start the project with adequate preparation so that your CapEx budgets don’t get out of control. Before beginning any project, you need to identify the project scope, figure out realistic deadlines, and make sure the entire plan is approved. Start using Cflow to automate the CapEx process management where the complete documentation of the request is maintained. This helps to track all your documents related to a single CapEx project in one place. Capital expenditure isn’t something that concerns just one department or team. With Cflow, you can share information easily with all the people who need to be kept in the loop. Since the system updates in real-time, any changes or approvals made can be seen by all other users immediately. When an employee initiates a request in Cflow, the CapEx details are filled in a form. An employee specifies a brief description of the project and estimates the fund required for the project. In other terms, it can be considered as a proposal for purchase. Cost centers may differ based on your department or project, select the cost center to allocate the fund required for the project. The request is routed to the appropriate reviewers for approval.
Employees Lookup (Master Table):
Employee details such as employee name and their email id are auto-populated in the form, based on the configuration from employees lookup.
Capex Approval Matrix (Master Table):
There may be a different set of approvers to review your form either based on your department or project. This approval matrix can be done automatically via the Capex Approval Matrix lookup configuration.
The automation of Capital Expenditure requests using the Cflow Solution brings sanity and transparency to the CapEx Approval Process and ensures all stakeholders are on the same page at all points in time.