Tech Trends for SMBs: Cut Capital Expenditure Approval and Workflow Time
When companies decide to invest money to acquire or upgrade fixed, physical, non-consumable assets, such as buildings or new equipment – each capital expenditure goes through an approval process.
Many small to mid-sized companies (and even larger companies) tend to manage and track Authorization for Expenditure (AFE) requests and approvals in lengthy email strings and error-prone spreadsheets.
Capital Expenditure or AFE software solutions offer an attractive option for companies who are accustomed to a manual process but seek a more automated and accurate one (without the headache of spending hours learning a complex new system).
Standardize the Process
Find a solution that will help you set a procedural process for all capital expenditure (CAPEX) requests and approvals. Having a standardized process in place saves time, money and helps the business to run more efficiently. Ensure you build in a plan for cost overruns, these should be subject to further approval.
Bring the Process Online
There are many electronic web-based systems that offer online approvals and electronic routing, that comply with your company’s approval policies.
Digitized AFE creation forms help your employees quickly and easily create an AFE. Drop down menus can be used to easily select meta-data such as project type, originator, and funding source. This lowers the risk for data inaccuracies due to human error.
Technology solutions have a workflow engine component to automate process flow, helping to quickly progress AFE requests through the approval process. Typically, these solutions can support any conceivable workflow process, including multiple levels of approval and parallel approvals. Many solutions offer a visual drag and drop workflow design to build process routing – without any coding.
Each step of the workflow can be time stamped and can include notifications to alert users of any action – pending or completed.
Increased workflow visibility means you can uncover a wide array of gaps and issues regarding business processes, such as how long a request has been waiting.
CapEX or AFE Tracking and Approval software helps increase operational efficiency and productivity for smaller and mid-sized companies. By leveraging AFE software to standardize, digitize and automate capex approval and tracking, companies can see a reduction in approval time and workflow time by up to fifty percent. To learn more about the Altius AFE solution, click here or request a free 30-day trial!