Ensure your capital expenditures meet short-term needs and long-term growth objectives.
Planning for your organization’s capital assets can be rather challenging when it’s not integrated with the company’s core financial statements: the P&L, balance sheet, and cash flow statement. With Kepion, capital acquisition planning can be driven by other planned activities, such as new headcount, increased production, or company expansions. Depreciation, debt schedules, and interest expenses should be automatically calculated accordingly.
Kepion can automatically calculate the depreciable value and interest expense from debt over time-based on how much is entered for an asset amount and type. This can also be integrated into the P&L, balance sheet, and cash flow statement.
Capital asset planning should be relatively straightforward. New headcount or production units can automatically drive new capital expenditures. In Kepion, you can enter a new asset item and type, and the rest is done for you.
Enter a new asset item and type, and Kepion will handle the rest with asset classifications, depreciation accounts, and useful life assumptions. Alternatively, use drivers such as headcount or production units to plan new capital expenditures.
Kepion provides an integrated environment for finance to control how each new capital asset flows through to the company’s core financial statements. Depreciation and interest expense can be automatically calculated, resulting in expenses folded into the P&L by expense management software, and balance sheet automatically updated with new fixed assets.
Capital asset planning, also known as capital expenditure planning, capex planning and capex budgeting is a process that organizations use to identify and analyze the current and future assets within their organization, and to determine how these assets affect their income statement and balance sheet as a result of depreciation, maintenance and insurance expenses.
Capital asset planning is often performed in siloed applications or even in Excel, and the process to consolidate asset data and to calculate depreciation can be time-consuming and error prone. With Kepion, companies add capex planning to their integrated planning solution, automating the calculation of sometimes complex calculations such as depreciation, and automatically incorporating the capex expenses into the corporate plan, income statements and balance sheets.
It depends. Every company is different and requires capex planning that aligns with their industry and business best practices. Kepion allows for total flexibility in how organizations manage their assets, providing several different options and levels of detail for analyzing, modeling and preparing their capex plans.
Capex planning provides a means to analyze existing projects, asset types or asset details, and to plan for acquiring new assets in the future. Along with those assets, depreciation, useful life and associated expenses are automatically calculated and incorporated into the capex plan, with those totals automatically incorporated into the integrated plan for the organization. Companies can budget for the future and see how acquiring new assets affects future performance for the organization, creating different scenarios to understand impacts. New asset submissions and an approval process can also be built in, to plan for future purchases for departments and business units based upon various assumptions.
Capital expenditure planning is a key process that feeds the company planning for an organization. In Kepion, all of this occurs within the same solution and platform. Users with access to capex planning will be able to access it from Kepion, they work on and submit their capex plan, and Kepion automatically feeds the resulting depreciation and related expenses to the integrated plan, consolidated at the department or business unit level. In this way you have a truly integrated planning process, with data loading and reconciliation performed automatically by Kepion.