Capex and depreciation forecast in 3 statements
Capex affects cash immediately, fixed assets on the balance sheet, and depreciation over time. A linked three-statement forecast helps keep those movements separate and reviewable.
1) Separate purchase timing from depreciation timing
- Capex creates a cash outflow and fixed asset addition.
- Useful life drives depreciation timing.
- Depreciation affects PL while accumulated asset movement affects BS.
2) Review cash and asset movement together
A common issue is seeing depreciation but missing the original cash outflow, or seeing cash outflow without a useful-life assumption. Use checks and account-level breakdowns before exporting Excel.
How do I forecast capex and depreciation?
Enter capex as the asset purchase and set useful life for depreciation. Then review cash outflow, fixed asset balance, depreciation expense, and checks together.