To Capitalise or Not to Capitalise

While BAU may frequently not be capitalised, projects can. For your continuing business as
usual activity, you rely on operational expenditures. In other words, projects and other tasks
have separate accounting approaches.

Funding for projects sometimes involves putting an asset into use, which allows the
expenditures to be capitalised. You may even be able to lower project expenses below the
line in some circumstances, depending on where you are in the globe and your local
accounting laws.

BAU costs are often included in the company's profit and loss records as opex (operating
expenditures).

Before deciding what should and shouldn't be capitalised in your organisation, it is usually
preferable to seek assistance from your financial professionals because project funding and
business funding, in general, are quite specialised areas. Accounting regulations vary by
nation and even by organisation since different firms have different procedures and methods
of operation.