Expenses

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

Create Expense

To create an expense in Zoho Books:

Create Expense

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:

  1. Click on the Gear icon on top of the page.
  2. Select Preferences.
  3. Click on Expenses under the Purchases module.

Mileage Expense Settings

Alternatively, you can record it while doing it for the first time. A pop-up screen appears where you can fill the appropriate details.

Mileage Expense Settings

After doing so you are ready to record mileage by through the following steps:

  1. Select Expenses under the Purchases tab on the left navigation bar.
  2. Click on the + or New icon.
  3. Select Record Mileage on the navigtion bar on top of the page.
  4. Enter the required details and click Save.

Mileage Expense Settings

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.

  1. Click on the Gear icon and go to Preferences.
  2. Select Expenses under the Purchases module.
  3. Click on Vehicle on the top navigation bar of the page.
  4. Select New on the top right corner of the page.
  5. Enter the relevant details.
  6. Click Save.

Vehicle Settings Vehicle Settings

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:

Vehicle Settings

To record a mileage expense for you vehicle(s):

If you record a mileage expense for the first time, you will be prompted with a setup screen to set your mileage preferences.

First Mileage Expense

Recurring Expenses

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,

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:

Recurring Expense

Mandatory Fields

There are a few details that you mandatorily need to enter while creating an expense,

  1. 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.
  2. Repeat Every - The frequency at which the expense is incurred, and needs to be created automatically in Zoho Books.
  3. Expense Account - The account where you want to track this expense.
  4. Paid Through - This refers to the account from which the expense was paid.
  5. Amount - The Expense amount.

Reimbursable Expense

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,

Reimbursable Expense

Invoicing a Reimbursable Expense

To invoice a reimbursable expense to the concerned customer,

Convert to invoice

Alternatively, you can apply the expense as an extra charge while invoicing the customer for the whole assignment. To do this,

Include expense

Other Actions

Other options

Custom Views

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:

Other options

You can find an example GIF image to understand how custom views work.

Custom view of invoices

To create a Custom View:

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.

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