Telecommunication is an integrated part of every industry you can imagine of in modern life. Beyond calls and internet, standing as an invisible infrastructure behind most digital interactions today.
The telecom industry depends heavily on infrastructure and has gone through more upgrades in a short time than most other industries. From the early days to today’s 5G networks, each stage of growth has required major changes to infrastructure. These upgrades often mean big spending, known as capital expenditure (CAPEX).
But how does this connect to operational efficiency? Simple — the money spent on big investments affects how smoothly and cost-effectively a company can run. For example, buying a modern, energy-efficient machine (CAPEX) might be expensive at first, but it can save money later through lower electricity bills and less maintenance — which is part of operational expenses (OPEX).
Capex
- Machinery
- Buildings
- Technology infrastructure
Opex
- Rent
- Utilities
- Salaries
- Subscriptions
- Repairs & maintenance
And the dependency of each on the other is a never-ending bond in the telecom industry. But why are we discussing investments all of a sudden?
Inside Telecom Business: The Daily Reality
Firstly, lets deep dive in more on what actually goes on in a day in the life of a Telecom business owner or matter of fact the whole business.
- Managing Recurring revenue models (monthly/annual service plans)
- Handling Complex billing (usage-based + subscription + add-ons)
- Coordinating across Multi-entity operations (subsidiaries, franchises, international locations)
- Staying on top of Regulatory compliance in multiple regions
- Following revenue recognition rules under ASC 606/IFRS 15
Tracking huge multi-year project (Capex) while managing day-to-day operational budgets (OPEX) like the ones mentioned above is imaginably quite difficult to handle when your systems don’t work under an AI-powered platform.
Which departments Sage Intacct comes to rescue?
The correct answer, Everything! Sage Intacct is a cloud accounting ERP for telecommunication industry that not only does the part of unifying systems and departments but #1 accounting system in automating Capex and Opex budgets, giving telecom businesses clear visibility and control.
And if the standard setup doesn’t perfectly fit your workflows, that’s where Greytrix steps in. We customize and fine-tune Sage Intacct so it works exactly the way you need it to — no compromises.
But instead of just telling you how powerful it is, let’s break it down. We’ll explore the core functionalities, then dive into how Sage Intacct handles CAPEX and OPEX separately — and why one can’t truly succeed without the other.
CAPEX (Capital Expenditures)
Large, one-time investments like towers, cables, and servers.
1. Project Accounting Module
- Without Sage Intacct: You might track each project’s costs in multiple spreadsheets, risking errors, delays, and no live visibility. Budgets often go over without early warning.
- With Sage Intacct: Each infrastructure project (e.g., “5G Rollout – Region A”) has its own digital file in the system showing budget, spend, timeline, and progress in real time. All updated automatically from invoices and purchase orders.
2. Fixed Asset Management
- Without Sage Intacct: You could forget to start depreciating an asset at the right time, miscalculate asset value, or lose track of equipment locations.
- With Sage Intacct: Once a tower or fiber network is built, it’s automatically moved from “project” to “asset” status, depreciation is calculated monthly, and you can track its book value and physical location.
3. Multi-Entity & Multi-Currency Support
- Without Sage Intacct: If you operate in multiple countries, you’d juggle separate accounts, manually convert currencies, and struggle to consolidate reports.
- With Sage Intacct: All subsidiaries feed into one system. Currency conversion, inter-company transactions, and consolidated reporting happen instantly.
4. CAPEX Forecasting
- Without Sage Intacct: Future capital needs are estimated manually and often wrong, leading to cash shortages or over-borrowing.
- With Sage Intacct: Uses historical spend patterns and active project data to predict future cash needs so you can plan funding accurately.
OPEX (Operating Expenditures)
Day-to-day costs to keep the network running.
1. Budget vs Actual Monitoring
- Without Sage Intacct: You only notice overspending at month-end when the books close — too late to fix it.
- With Sage Intacct: Dashboards show live data comparing your budget to current spend. If electricity bills for towers spike mid-month, you see it instantly.
2. Cost Centre Accounting
- Without Sage Intacct: You know your total expenses, but not which department is overspending.
- With Sage Intacct: Expenses are tagged by department (network ops, marketing, billing, etc.) so you know exactly where money is going.
3. Vendor & Contract Management
- Without Sage Intacct: Contract renewals get missed, you overpay vendors, or invoices are duplicated.
- With Sage Intacct: Keeps all contracts in one place, tracks renewal dates, flags duplicate invoices, and ensures you pay only what’s agreed.
4. Approval Workflows
- Without Sage Intacct: Anyone can place orders or commit spending without oversight, leading to budget leaks.
- With Sage Intacct: Purchase requests and invoices must be approved by the right manager before money is committed, all digitally tracked.
So, where do these bodies meet?
Even though CAPEX and OPEX are tracked separately, in telecom they are deeply connected:
- High CAPEX → Increased OPEX:
Building new towers increases future operating costs (maintenance, electricity, leasing land). - OPEX Efficiency → More CAPEX Budget:
Cutting operating costs can free up funds for new infrastructure projects. - ROI Tracking:
Sage Intacct links CAPEX projects to resulting revenue and tracks if the OPEX increase is justified. - Scenario Planning:
In Intacct’s planning module, you can model “What if we invest $X in CAPEX, how will OPEX and profits change over 5 years?”
Sage Intacct treats CAPEX (one-time, long-lived investments) and OPEX (recurring operating costs) as distinct types of accounting objects so your books stay accurate and compliant.
At the same time, its reporting and planning tools let you view both together. So you can answer questions like “If we spend $X on new sites, how will monthly operating costs change and when will we get payback?”
What to do if your Sage is not Sage-ing?
Sage Intacct for Telecommunication industry or similar other ERP systems have a set of default settings they operate within. Although, they are sufficient for automating majority of your requirements, certain methodologies of certain telecom businesses are adamant over how they keep their workflow in a specific manner. And there’s where Greytrix provides IT solution of customizing and making the product work for you and not the other way around.
Where to see all the discussed things in action?
We provide live demo sessions and consultancy that will make you achieve your desired outcome from Sage Intacct accounting for Telecommunications. Visit www.greytrix.com or Book a demo.
Welcome to our repository of Sage Intacct insights, useful tips, and best practices that will allow you to leverage ERP technology. As your Sage Intacct consulting & implementation partner with 24+ years of experience, Greytrix specializes in offering the best suite of Sage Intacct services. Here, you will find informational blogs that will enhance your understanding and usage of Sage Intacct. Stay informed with our regular updates and expert insights!
