What is the difference between capex and opex?
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Depends on the tax law. There is generally a limit that the tax office uses to help delineate the two.
Generally Opex is an expense, the value of which will not be valuable beyond the tax year. For example wages: the salary bill for 2021 doesn’t affect the business in 2022, because they have to pay it again. Opex can be fully deducted as an expense off the income in that tax year, so companies like to make expenses Opex.
Capex is an expense which will have utility over a longer period. Take a building. If you buy a machine in 2021, you might expect it to be used for 10 years. So, the tax office will only allow you to recognize a proportion of the expense every year (10% say) as depreciation over the life time of the item. This means that if you spend $1,000,000 on a machine that has a 10 year life, you can only deduct $100,000 off your income as a tax break — although you can do it every year for 10 years. This means you are carrying the expense on your books for that period and have effectively paid a proportion of tax on it — companies hate Capex for that reason.
Capex is under $5k ?
Capex = capital expense where you spend money to purchase capital equipment (capital asset). It does not hit income statement right away. Capital asset depreciates at certain rate and that portion hits the income statement as an expense.
All other expenses are Opex - operational expense. Biggest chunk is salaries.
We've had ZERO travel budget during the past year, where are you seeing all the spending exactly? ELT bonuses maybe? Or HI relocation fees?