- What are Expenses?
- Creating an Expense
- Recording a Mileage Expense
- Setting up your vehicle profile
- Recurring Expenses
- Mandatory Fields
- Make an Expense Reimbursable
- Invoicing the Expense
- Creating Custom Fields for Expenses
- Other Actions
What are Expenses?
A typical expense is incurred when money goes out of your pocket. Whether its a product you buy from your vendor to run your business, or food that you eat while on business trips, it’s important to track the money you spend.
Creating an Expense
To create an expense in Zoho Books:
- Go to the Purchases tab on the left navigation bar and select Expenses.
- Click the ‘+’ or the ‘New’ button to open the Record Expense page.
- Enter the expense details such as the Expense account to track it, amount and the account to be paid through.
- Additionally you can associate a vendor, sutomer and VAT for the expense.
- Click Save.
Recording a Mileage Expense
Zoho Books allows you to record your organization’s mileage expense. Let’s take an example where you or one of your employees had to go on a business trip. If you would like to record the expense towards your trip for your accounting purposes, you can do it by recording the mileage expenses and map them under Chart of Accounts.
The first step in recording your mileage expense is setting up your mileage preferences:
- Click on the Gear icon on top of the page.
- Select Preferences.
- Click on Expenses under the Purchases module.
Alternatively, you can record it while doing it for the first time. A pop-up screen appears where you can fill the appropriate details.
After doing so you are ready to record mileage by through the following steps:
- Select Expenses under the Purchases tab on the left navigation bar.
- Click on the + or New icon.
- Select Record Mileage on the navigtion bar on top of the page.
- Enter the required details and click Save.
Setting up your Vehicle profile
You can create a profile for your vehicle and add a mileage rate for that. This can be applicable even if the vehicles belong to the same vehicle type.
- Click on the Gear icon and go to Preferences.
- Select Expenses under the Purchases module.
- Click on Vehicle on the top navigation bar of the page.
- Select New on the top right corner of the page.
- Enter the relevant details.
- Click Save.
Let’s take an example where your company uses two cars, and you wish to set a different mileage rate for each car due to various reasons.You can also choose the vehicle while recording a mileage expense.
If you wish to assign different mileage rates for vehicles in your organization:
Set up a profile for your vehicles and follow the instructions below:
- Click on the Gear icon on the top-right corner, and select Preferences.
- Select Expenses tab under Purchases.
- Under the Mileage Rates select the Vehicle that you have created and enter the Mileage Rate. You can assign multiple mileage rates by clicking on +Add Mileage Rate option.
- Enter the other additional information such as Default Account, Default Unit and Start Date.
- Click Save.
To record a mileage expense for you vehicle(s):
- Go to the Purchases tab on left navigation bar and select Expenses.
- Click on the New on the top right corner and select the Record Mileage option.
- Select the vehicle under Vehicle drop-down.
- Fill in other necessary fields.
- Click Save
If you record a mileage expense for the first time, you will be prompted with a setup screen to set your mileage preferences.
A recurring expense is one that is incurred on a periodic basis, and recording it can be automated in Zoho Books. Examples of such an expense would be the rent you pay for your office space or your monthly internet bill.
To create and automate a recurring expense,
- Go to the Purchases tab on the left navigation bar, and click on Recurring Expenses.
- Click on the + or the New icon.
- Provide the required information, and click Save.
You can make an existing expense recurring by clicking on the expense and selecting Make recurring. Enter the required information and Click Save.
To make a regular expense recurring:
- Select the exepense under the Expenses tab.
- Click on Make Recurring on the top of the expense page.
There are a few details that you mandatorily need to enter while creating an expense,
- Profile name (for recurring expenses) - Enter a name to identify the profile of the recurring expense. The expense will be tracked throughout under this profile name.
- Repeat Every - The frequency at which the expense is incurred, and needs to be created automatically in Zoho Books.
- Expense Account - The account where you want to track this expense.
- Paid Through - This refers to the account from which the expense was paid.
- Amount - The Expense amount.
In most cases, the work doesn’t stop with simply tracking where you money is spent. Expenses that are incurred while on an assignment for your client can be reclaimed from them. For example, if you’re an online seller who supports home delivery, you can add the delivery charges onto the sale amount and get it reimbursed from your buyer.
To make an expense reimbursable in Zoho Books,
- Create the expense
- Select the customer who is reimbursing you and check the box that says Billable.
- This expense can now be invoiced to the customer.
Invoicing a Reimbursable Expense
To invoice a reimbursable expense to the concerned customer,
- Select the particular expense
- Click on the label Convert to Invoice.
- Fill in the required details and invoice your customer.
Alternatively, you can apply the expense as an extra charge while invoicing the customer for the whole assignment. To do this,
- Create an invoice for the concerned customer.
- You can view some text at the bottom that says Include unbilled expenses. Click on this to reveal any reimbursable expense associated with this customer.
- Pick the ones associated with this particular assignment you’re invoicing for, and add them to the invoice before sending it out.
- Attach receipt - Upload a picture of the receipt and attach it to the corresponding expense instantly. This can be done both while recording a new expense or by opening an already existing expense and clicking on Attach Receipt.
- Clone - Duplicate an expense by opening it and selecting More > Clone. This duplicate expense will be tracked under the same profile.
- Delete - Delete an expense by opening it and selecting More > Delete. This action cannot be reverted.
Custom Views are specific filters to list your expenses, based on your criteria.
For example, out of all your expenses in Zoho Books, you might want to view those expenses that are greater than $2000.
With Custom Views, you can simply create this filter. All you have to do is set criteria and later use it to classify data.
To create a custom view:
- Click on All Expenses in the Expenses page.
- Select + New Custom View.
- Fill in the appropriate details and click Save.
You can find an example GIF image to understand how custom views work.
To create a Custom View:
- Go to the Expenses module.
- Under the All Expenses drop down, present at the top left, select + New Custom View.
- In the following page, give an appropriate Name to your view, define Criteria, Column Preference (i.e. columns which you want to see in the filtered results).
- Click Save.
Your new custom field will now be listed under Created By Me, in the dropdown.
Note: Custom views can be created for both Expenses and Recurring Expenses.