Learn more about common financial (and startup) terms here. To learn more about Pilot, fill out the form below.
Capital expenditures (CapEx) are when you spend money to buy, maintain, or improve assets that you plan to use for longer than a year. These can include tangible assets, such as equipment and property, and intangible assets, like patents or licenses.
These expenses likely show up under the “Assets” section of your balance sheet, rather than appearing on your Profit & Loss statement.
While you may make a large initial investment in these assets, in your books, you spread out the cost over the asset’s useful life. For example, if you purchase a 10-year license for $100,000, you can depreciate (take a write-off) $10,000 each year.
Pilot provides bookkeeping, CFO, and tax services for literally thousands of startups and growing businesses. We've successfully processed over 10 million transactions for our customers and have unparalleled expertise when it comes to helping businesses succeed.
We're the largest startup-focused accounting firm in the United States, and we'd love to help you. To talk to an expert on our team and find out what Pilot can do for you, please click "Talk to an Expert" below, or email us at firstname.lastname@example.org.
Get the peace of mind that comes from partnering with our experienced finance team.