Help Centre · Accounting

CAPEX vs OPEX: capital spend vs running costs

CAPEX (capital expenditure) is money spent on things you keep and use for years — a fridge, a van, machinery, computers. It isn't expensed all at once; it becomes a fixed asset whose cost is spread over its life as depreciation. OPEX (operating expenditure) is your day-to-day running cost — rent, salaries, utilities, repairs — expensed in full in the month it happens.

Rule of thumb

If it lasts more than a year and is worth tracking, it's CAPEX (record it as an asset). If it's used up now, it's OPEX (record it as an expense). A new oven is CAPEX; the gas to run it is OPEX; fixing it is OPEX.

The CAPEX vs OPEX report

Open Accounting → CAPEX vs OPEX. It shows CAPEX (new assets), OPEX (split into cash and non-cash depreciation/write-offs), non-operating Other (interest, FX loss, loss on disposal — kept out of OPEX), and Cash out (the real money that left). Group by Business Unit or Branch, and tick Roll up sub-units to include a division's sub-teams.

Example: in one month you buy a $12,000 chiller (CAPEX) and pay $3,000 rent + $200 depreciation (OPEX). The report shows CAPEX 12,000, OPEX 3,200 (of which 200 non-cash), and cash out 15,000 — and your operating-expense total ties to your Profit & Loss exactly.

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