Equipment management is a complex and difficult task that affects almost every aspect of a company’s operation. Successfully managing equipment owning costs requires accounting and finance skills and expertise throughout the entire equipment life cycle, from acquisition through disposal. Another critical aspect for equipment-intensive contractors is the budgeting of capital expenditures as well as annual equipment hours, owning, and operating costs. Learn best practices of how the internal “Equipment Triangle” of Operations, Fleet, and Accounting can collaborate to achieve success in managing, budgeting, and tracking your fleet. This session will prepare you to develop accurate equipment costs and set rates that enable each category of equipment to recover its actual costs. Further, it will provide insights into the process, inputs, and workflows to establish accurate and effective budgets.
Effectively forecast capital expenditures and develop annual budgets for equipment hours, revenues and owning and operating costs.
Distinguish between owning/operating costs as two principal equipment cost types and how owning/ operating costs change through the life and what factors influence these costs.
Explain the reasons for and the importance of an hourly equipment owning and operating cost rate.
Identify action steps to monitor and reduce equipment costs.
Understand the workflow of a collaborative and comprehensive equipment budgeting process.