Expenditure is a broad term that can refer to anything bought or paid for, while capital expenditures are the money a business spends on purchasing items that are expected to have long-term value and utility. Expenses are costs incurred each month in order to keep the business running, such as utilities, wages, marketing costs, administrative costs, and any other day-to-day expenses. Capital expenditures, on the other hand, typically require more upfront investments, but can be spread out over multiple budget years. Examples of capital expenditure purchases include equipment, property, software, or other assets that have a longer life than normal consumable products. Picking the right balance between short-term and long-term investments is key for businesses that want to stay competitive and remain profitable.