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Make Smarter Capital Purchases with the CCH Tagetik Smart NOW Capital Expenses Planning App

Aug. 6 2020 by Giovanni Allegrini, Lead Technology Product Manager - CCH Tagetik North America

Budgeting & Planning

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.

Capital Expenses Planning

The App in a Nutshell

The CCH Tagetik Smart NOW Capital Expenses Planning app helps you make calculated decisions that benefit your organization both today and in the long run. Whether you’re contemplating buying a new building, containing expenses during a market shift, or simply managing monthly fixed costs, our app helps your organization vet capital purchasing decisions. Our best-practice templates automatically populate with your data. Since they're pre-built *and* fully configurable, you can lay out the entire financial lifespan of the asset month-over-month, year-over-year, while setting the asset’s unique depreciation pattern and identifying the accounts it impacts.

When you need to make sure you're making the best spending decision for the long-term, our app shows you the impact of capital purchases over time. You can play out the effects of expenses on financial plans — your balance sheet, revenue plan, income statement, and cash flow — and then project those numbers into the future.

3 Reasons to Get This App

Reason 1: It’s Pre-built with Capital Expenses Planning Intelligence
Now you can make decisions with an understanding of an asset’s short-term and long-term capital effects. Our capital expenses planning intelligence includes input templates, calculation logic, and pre-built reports that instantly update with your latest data. It’s also powered by the CCH Tagetik Analytic Information Hub, our powerful data processing engine that instantly puts real-time granular data at your fingertips.

To top it off, we packaged the app with functionality that you can easily configure. In just a few clicks, you can set up the app to reflect the asset categories, depreciation methods — standard and custom — and impacted accounts relevant to your business.

Reason 2: It Helps You Anticipate the Impacts of Any Given Scenario
During times of tumult, big money decisions rip down the pipeline at warp speed. You can make better capital purchases by understanding how changing circumstances might affect your purchase or how your purchase might withstand changing circumstances. Plus, you can explore your full range of “what-ifs" by playing out scenarios and simulations using both financial and operational data. The app gives you the automation to save snapshots, compare versions, and view each scenario's financial impacts on the income statement, balance sheet, and cash flow.

Reason 3: It Puts the Decision-Making Power in Finance’s Hands Today
Our ready-to-deploy cloud app puts the power of knowledge in Finance’s hands through intuitive dashboards and customizable workflow processes. These features have built-in logic for approval, submissions, data collection, and aggregation. Together, these give Finance an all-seeing-eye on the planning process.

As with all our CCH Tagetik Smart NOW cloud planning apps, this app was built based on best practices standardized from many years of developing capital expense solutions for our customers. We built the entire CCH Tagetik Smart NOW cloud planning app series to help organizations make better decisions during times of crisis but also built to get you up-and-running fast and remotely.

Learn more about CCH Tagetik SmartNOW Capital Expenses Planning. Register here to the dedicated webinar to explore its entire range of functionality.

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