Is software considered as a capital expenditure (capex) or an operational expenditure (opex)?

Software can be considered both a capital expenditure (capex) and an operational expenditure (opex), depending on how it is used within a business. When software is purchased for long-term use and adds value to the business over time, it is typically classified as a capex. On the other hand, if the software is used for day-to-day operations and maintenance, it is considered an opex.