Read this blog to learn more about CCH Tagetik Smart NOW Capital Expenses Planning and register to the dedicated webinar to explore its entire range of functionality.
Whether you're faced with economic uncertainty, market shifts, or, like our current climate, black swan events, it falls on Finance's shoulders to advise the C-suite on remarkable — and expensive — direction-altering decisions. (No pressure.) What's more, the long-term effects of these decisions could reverberate financially, operationally, and strategically for decades to come.
Capital expenses (CAPEX) planning is challenging enough even when you have the liberty of time to weigh the pros and cons of your decisions. During a crisis, however, the challenges that plague the process are exacerbated by the pressure to act and half-baked projections, the consequences of which won't manifest until it’s too late.
But what are these challenges? Most commonly, we've found that Finance struggles with:
The Biggest Challenges to Capital Expenses Planning
Business Impacts Unknown: Finance should have full visibility into the financial and operational impacts of large capital expenses, but this isn't always the case. When decisions are made without Finance’s input, the chain of effect could mean nonviable purchases get approved, altering the financial landscape of a company for an extended period of time.
Changing Requirements: When circumstances change, as they do during times of tumult, the ability to test decisions — while updating assumptions as they evolve — is pivotal to your ability to spend confidently.
Integration with Financial Statements: If you can't project the impacts of your capital purchase on the income statement, balance sheet, and cash flow statement, you're going into the purchase blind. Your ability to see your decisions' long-term financial impact is critical for both future planning, cash flow, and purchase power.
For these reasons and more, we created the CCH Tagetik Smart NOW Capital Expenses Planning app.