This Capital Expenditures Budget Template can be used by Financial Planning & Analysis Professionals to budget the investment outlays for upcoming capital expenditures. The template organizes required capital expenditures by business unit, and then further classify them according to the corresponding department. This is designed to help FP&A professionals identify the Capex requirements of the business. This CapEx Budget Template is an essential tool for the Budgeting process and should be used in unison with the cash budget and operating budget for the development of a detailed budget. This template will assist in the evaluation of the main expenses that will be incurred in the upcoming year. This will facilitate the decision on how to fund each individual project, and also assist in identifying which projects will generate the most value. This Capital Expenditures Budget Template can later be used as a comparison tool, to see the variation between the budgeted and actual Capex, any diversion between these two values can then be further analyzed. Capital Expenditures typically comprise a large percentage of a business' investment activities, and for this reason, require large cash outflows. Some typical examples of capital expenditures involve the purchase of expensive assets such as machinery, real estate, and other forms of Property, Plant & Equipment. PP&E assets require a periodic tracking of Depreciation expense, I recommend the use of CFI's Property, Plant & Equipment Schedule Template to track the value of PP&E and total depreciation expense. This CapEx Budget Template is useful for the complete lifecycle of the budgeting process. It will assist in:
- The planning of actual operations.
- Co-Ordinate different activities within the organization.
- Effectively Communicate Plans to Managers.
- Set goals to be achieved.
- Control Projects expenses.
- Evaluate the performance of projects.
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