Capital Expenditure Approval Checklist ( FINANCE )

This checklist outlines the essential steps for approving capital expenditures within the organization. It ensures that all necessary evaluations and approvals are obtained before any capital project is initiated, maintaining financial discipline and accountability.

• Identify Capital Expenditure Request

  Gather and document the details of the capital expenditure request, including the purpose, amount, and justifications.

• Initial Review by Department Head

  The department head must conduct an initial review to ensure the request aligns with departmental goals and budgets.

• Cost-Benefit Analysis

  Perform a cost-benefit analysis to evaluate the expected financial returns against the expenditure.

• Risk Assessment

  Assess potential risks associated with the capital project, including financial, operational, and market risks.

• Obtain Necessary Approvals

  Send the request along with supporting documents to the finance team and any other necessary approvers for their signatures.

• Prepare Capital Expenditure Report

  Compile all the findings, analyses, and approvals into a formal capital expenditure report.

• Final Approval from Senior Management

  Present the capital expenditure report to senior management for final review and approval.

• Document and File Approval

  Once approved, document the decision and file all relevant documents in accordance with company policy.