Partnering with the right OpEx Consultant will help you manage your day-to-day expenses and also create the right maintenance schedule that ensures your business runs efficiently and cost effectively.
Understanding the nuances of the day to day operating expenditure can be the difference in growth and stagnation for your company. One of the most effective metrics to standardise operations around the company is OpEx. Here we will take a look at exactly what OpEx means and what it can mean to your business.
What is OpEx?
The day to day expenses of running a company fall under the umbrella of OpEx, or operating expenses. In the real estate industry, for example, these expenses include salaries, repairs and maintenance, rent, utilities, property taxes and smaller items on an expense sheet. These operational expenses usually take up the majority of a company's expense sheet.
Whether they know how to calculate OpEx or not, management is always intuitively looking to reduce operational expenses without causing a critical drop in quality or production output. Learning the OpEx metric certainly helps in this regard, however.
CapEx vs OpEx
OpEx is not to be confused with CapEx, which are the capital expenditures that a company generates. The number one difference between OpEx and CapEx is the amount of time in which an expense will be created. An operating expense refers to an expense that will be used within a 12 month period. The capital expense is any expense that occurs in a timeframe longer than this.
First and foremost, OpEx and CapEx are proper to differentiate between because they are treated differently by the ATO. However, there are plenty of reasons outside of regulatory compliance to differentiate between OpEx and CapEx.
Items on your OpEx list require maintenance schedules, corrective repairs and replacements much earlier than capital expenditures. There is also no reason to worry about things like depreciation on your operating expenses, something as essential on your CapEx projects and calculations.
Your OpEx Budget And Brisull
Doing good business means having a viable budget for your operating expenses. The more that you can reduce your expenditures without reducing the quality of your output, the more productive your business becomes. This is much more difficult than it looks, however. Finding new ways to make your business more efficient from less resources requires a detailed, personalised look at how you use those resources. In most cases, you barely have time to use the resources in an optimised way, much less assess how you are using them.
This is the advantage of partnering with an OpEx consulting company with the experience to help optimise your resources. The right partner will also be able to forecast the repair and maintenance schedule that your short-term future projects will require. With these numbers in tow, you can set your business on a path to truly optimise the resources that it uses.
This is especially important in industries with tight profit margins that are also becoming more competitive in every new business cycle. Understanding how you use your short-term resources and getting more out of them is essential to the growth of your business and the profitability of your personal efforts.
At Brisull we have the OpEx experience and expertise to help you save money and optimise your resources.