Capital Expenditures Accounting is a form of accounting that keeps track of the costs associated with an organization’s long-term investments. This includes physical assets such as buildings, equipment, and machinery; intangible assets, such as software licenses; and certain investments in research and development. Capital expenditures are different from normal operating expenses, which are deducted from income each year, as they involve substantial amounts of money and have a longer-term impact on the financial health of the organization. By tracking these investments, organizations can make informed decisions about their future spending and ensure they are making wise choices with their capital expenditure budgets.