Capital Expense Budget for Healthcare Providers using Acumatica

What is a Capital Expense Budget for Healthcare Providers?

A Capital Expense Budget, often referred to as “Capex,” plays an integral role in the annual budgeting process, serving as a critical tool for various stakeholders, including budget managers, procurement officers, and department heads. It aids in strategic planning and forecasting future asset acquisitions. This budget template incorporates user-friendly features, such as dropdown menus for asset selection, department allocation, and purchase scheduling. The estimated asset lifespan is typically based on assumptions, enabling automatic monthly depreciation expense calculations. By inputting purchase prices and quantities, all relevant figures are computed automatically. The resulting depreciation expenses and accumulated depreciation are seamlessly integrated into Profit and Loss (P&L) and Balance Sheet budgets. Typically, this template is employed across healthcare facilities, consolidating departmental asset acquisitions into a unified format. A representative example of this budget template is presented below.

Purpose of Capex Forms

Hospitals and clinics rely on Capex Forms to secure funding for asset acquisitions while also capturing essential comments and details that streamline the approval process. When integrated into sound business practices within a Financial Planning & Analysis (FP&A) department, healthcare organizations can significantly enhance their expense management and asset procurement strategies, reducing the risk of budget overruns stemming from unforeseen investments.

Benefits to Users

The adoption of a Capital Expense Budget model, like the one outlined above, offers numerous advantages to users within healthcare organizations. Firstly, it equips them with a comprehensive, data-driven view of their capital expenditures, enabling more informed decision-making. With easy access to depreciation calculations, purchase history, and asset details, department heads and budget managers can make timely and strategic decisions when planning asset acquisitions. This heightened visibility also aids in optimizing resource allocation and aligning budgets with organizational objectives, fostering efficiency across the organization. Furthermore, by streamlining the approval process through Capex Forms, healthcare professionals can expedite asset procurement, reducing administrative bottlenecks and enhancing overall operational efficiency. Ultimately, the utilization of such models not only ensures better financial control but also equips users with the tools necessary to excel in their roles and contribute to the long-term success of their healthcare institutions.

Capex Form Example

Here is an example of a Capital Expense budget input form with automated depreciation expense calculations.

Capital Expense Budget for Healthcare Providers using Acumatica

Capital Expense Budget for Healthcare Providers Example from Solver

You can find hundreds of additional examples here.

Who Uses This Type of Budget Template?

The typical users of this type of budget template are: CFOs, Budget Managers, Procurement and IT Managers.

Other Budget templates Often Used in Conjunction with Capex Forms

Progressive Financial Planning & Analysis (FP&A) Departments sometimes use several different Capex Forms, along with budget templates for revenues, KPI metrics, payroll, profit & loss, balance sheet and other management and control tools.

Where Does the Data for Analysis Originate From?

The Actual (historical transactions) data typically comes from enterprise resource planning (ERP) systems like: Acumatica, Sage Intacct, Microsoft Dynamics 365 (D365) Finance, Microsoft Dynamics 365 Business Central (D365 BC), Microsoft Dynamics AX, Microsoft Dynamics NAV, Microsoft Dynamics GP, Microsoft Dynamics SL, Sage 100, Sage 300, Sage 500, Sage X3, SAP Business One, SAP ByDesign, Netsuite and others.

In analyses where budgets or forecasts are used, the planning data most often originates from in-house Excel spreadsheet models or from professional corporate performance management (CPM/EPM) solutions.

What Tools are Typically used for Reporting, Planning and Dashboards?

Examples of business software used with the data and ERPs mentioned above are:

  • Native ERP report writers and query tools
  • Spreadsheets (for example Microsoft Excel)
  • Corporate Performance Management (CPM) tools (for example Solver)
  • Dashboards (for example Microsoft Power BI and Tableau)

Corporate Performance Management (CPM) Cloud Solutions and More Examples

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