Budgets - Overview
Budgets help businesses control and monitor their spending. In most cases, the actual spending of your business will differ from the budget you initially set. Tracking this variance allows you to plan better and make informed financial decisions.
With Zoho Spend’s Budgeting feature, you can:
- Set budgets for your organization and employees.
- Compare your budgets against actual spending with the Budgets Vs Actuals reports.
- Set warning alerts to notify employees when they are nearing their budget limit, and blocking alerts to prevent overspending.
You can create budgets for your entire organization or for individual employees on a monthly, quarterly, half-yearly, or annual basis.
Scenario: John, the Finance Manager, wants to keep Lodging expenses in check while employees travel for business.
- He can set a monthly budget for the Lodging category for the entire organization.
- At the end of the month, he can compare the budget with the actual spending to decide the next month’s budget.
- He can also set warning alerts to notify employees when they are nearing their budget limit, and blocking alerts to prevent overspending.
In John’s case, the allowance per employee varies depending on their hierarchy. Using Zoho Spend, he can:
- Configure different budgets based on employee hierarchy.
- Create budgets for individual employees.