Capital outlays refer to expenditures made to acquire or improve long-term assets such as property, equipment, and buildings. The opposite of this term is operating expenses, which are the costs incurred in day-to-day business operations such as salaries, utilities, and rent. Unlike capital outlays, operating expenses are treated as current expenses and are deducted from revenue when calculating the year's net income. While capital outlays help businesses grow and expand, operating expenses keep them running smoothly. So, it's essential for businesses to manage their capital expenditures and operating expenses to maintain a healthy financial position. By minimizing capital expenditures and optimizing operating expenses, businesses can achieve greater profitability and growth.