Difference between CapEx and OpEx
The difference between CAPEX AND OPEX are as follows:- Capital Expenditures, often known as CapEx, are the funds spent by your company on fixed assets. Whole systems and servers, printers and scanners, and air conditioners and generators are examples of IT equipment that belong under this category. You purchase these things once and they will benefit your firm for many years. Maintenance of such goods is also termed CapEx because it increases their usefulness and lifespan. These are large investments, generally a one-time buy, that are meant to help your company over a longer period. The procurement cost appears on your balance sheet and is subsequently depreciated over time. Small firms sometimes struggle with CapEx expenditure since it typically comprises the high cost of a one-time purchase. The more money spent on capital expenditures, the less free cash flow there is for the remainder of the firm. We also have Operating Expenses, abbreviated as OpEx, which are the cash that an or