What is a Capital Expense Budget for Healthcare Providers?
Capital Expense (“Capex”) budget forms are considered a key part of annual budget models and are often used by budget managers, purchasing managers and department heads to plan future asset purchases. Key functionality in this type of budget template includes drop downs to choose asset type, department, and purchase month. The average lifetime of the asset typically comes from an assumption and will automatically calculate the monthly depreciation amount. After the user enters purchase price and quantity, everything else calculates automatically. Total depreciation expense and accumulated depreciation end up on the P&L and Balance Sheet budgets. Typically, this template is used for each healthcare facility with all their departmental asset purchases contained within the same form. You will find an example of this type of budget template below.
Purpose of Capex Forms
Hospitals and clinics use Capex Forms to request funding for asset purchases and to capture comments and details that will help in the approval process. When used as part of good business practices in a Financial Planning & Analysis (FP&A) department, a healthcare organization can improve its expense control and asset procurement plans, as well as, reduce the chances of budget overruns due to unforeseen investments.
Capex Form Example
Here is an example of a Capital Expense budget input form with automated depreciation expense calculations.
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: 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 Intacct, Sage 100, Sage 300, Sage 500, Sage X3, SAP Business One, SAP ByDesign, Acumatica, 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
- View 100’s of reporting, consolidations, planning, budgeting, forecasting and dashboard examples here
- Healthcare White Paper and other industry-specific information here
- See how reports are designed in a modern report writer using a cloud-connected Excel add-in writer
- Discover how the Solver CPM solution delivers financial and operational reporting
- Discover how the Solver CPM solution delivers planning, budgeting and forecasting
- Watch demo videos of reporting, planning and dashboards