Capital Expense vs Cash Flow Expense - Structuring Technology Costs

Capital expenses are those that provide long-term benefits and are not used up in the production process. Capital expenses can be tangible (such as buildings, machinery, equipment) or intangible (such as patents and copyrights). Cash flow is an estimate of how much cash will come into a company over a specific period of time. It includes all income statement revenues and expenses. Capital expense is the purchase of durable goods that have long-term utility to the company, whereas cash flow expense is any expense relating to day-to-day operations.