CapEx vs OpEx: Understanding the Key Differences and Their Impact
When it comes to managing business expenses, the terms CapEx and OpEx often pop up. Understanding these concepts isn’t just for accountants; it’s vital for anyone steering a business. Today, I’ll walk you through the key differences between CapEx vs OpEx, their impact on your business, and why they matter in today’s fast-paced world. Key Takeaways CapEx stands for capital expenditure, while OpEx means operational expenditure. CapEx investments focus on long-term assets like property or machinery, while OpEx covers day-to-day costs like utilities and salaries. Making the right choice between CapEx vs OpEx impacts your cash flow, balance sheet, and [...]