Budgeting is an essential component for the long-term success of your business. But it can be a time-consuming process. So we at Zoho set out to make budgeting simpler and easier. You can now budget and measure your business performance in three simple steps: create budget, compare budget versus actuals, and find areas of concern.
Let’s look at how Zoho Books makes budgeting easier for your business.
1. Create budgets effortlessly
When you create budgets, it can be time-consuming to manually fill in values for every period. Zoho Books offers you three different methods to create budgets. You can:
- Auto-fill your income and expense accounts
- Pre-fill based on previous years' actuals
- Enter data manually
Auto-fill your income and expense accounts
One common budgeting strategy is to build your budget based on the first period. If you take this approach, you will be projecting your budget for subsequent periods based on the amount you've set for the first period.
In Zoho Books, you can enter the first period’s budget and specify an amount or a percentage to increase or decrease for the subsequent periods. When you apply the adjustment, the budget for all the periods (monthly, quarterly, or half-yearly) will be auto-filled.
There are three ways in which you can auto-fill your amounts:
- Apply a fixed amount for each period
- Adjust by an amount for each period
- Adjust by a percentage for each period
Pre-fill based on a previous year's actuals
If you want to use the previous year's actuals as a yardstick, you can pre-fill your budget using any of your previous years' actual amounts.
If your business is projected to perform better than it did in the previous years, you can increase the pre-filled amounts by an absolute amount or a percentage for each period.Similarly, if you wish to budget less in subsequent periods, you can auto-fill the amounts with a downward adjustment.
Enter data manually
If you need to set a budget for your income and expense accounts that's unique for each period and doesn't follow a pattern, you can enter the amounts for each period manually.
2. Compare actuals with budgets to evaluate your business' performance
At the end of each financial period, you will want to compare how your business has actually performed against the budgets you set for it.
In Zoho Books, you can compare your budgets with your actuals using a comprehensive report. This report gives you a list of accounts with their budgets, actuals, and variances. Observing the trends of actuals versus budgets helps you identify the accounts that have gone over budget, so that you can take the necessary steps to keep them within limits in future periods.
3. Make informed decisions
Now that you have set your budget and compared it with the actual performance of your business, you will want to find areas of concern that require your attention.
Once you find these areas of concern in your business, it's easier for you to decide how to allocate your budgets accurately in the future. Also, it will help you set more realistic targets and put your business on the road to success.
Start budgeting in Zoho Books and let us know your thoughts in the comments below. Refer to our help document to know how to budget in Zoho Books. If you have any questions, feel free to reach out to us at email@example.com. Stay tuned for more updates from Zoho Books!
This feature is available only in the Standard and Professional plans of Zoho Books. For the Indian edition, it is available only in the Professional and Premium plans of Zoho Books.
Similarly, this feature will only be available for the Premium and Enterprise plans of Zoho Expense.
17 Replies to Start budgeting with Zoho Books, the easy way
Excellent! I cant wait to try this out. Just what I need.
Thank you, Chris! Do try it out and let you know your thoughts.
This is lovely
Wonderful! This is a feature that will really help! I can now keep this along with all my other accounting records. Thank you!!!
Hey Jeff, we're glad that you've found budgeting in Zoho Books useful. Thanks for taking your time to drop a comment.
Great!!!!! Very Happy! This was a glaring missing item.
Great job zoho, I love books and expenses, keep up the good work!
Thanks you, Enzo. We are excited that we were able to deliver. Stay tuned for more updates.
very nice guys ! This is something that many companys are searching the whole time! Hope you will enhance more with good updates soon . keep it up! cheers
Excellent ! lets work!!!
Thank you, Ignacio. And yes, let's get to it :)
Superb feature. It can add alot of value. I have some issue i am facing in zoho, When i look for support from zo team through chat, It is not working. Thast frustrating some time
Thank you, Muhasin. Feel free to write to us at firstname.lastname@example.org. We'll get right back at you.
Wow, this is such great news! This is a game-changer! Thank you Zoho!
Hello Thanks for the information. Please let us know the same is in our package or we have to pay any extra amount for this module.
Hey Vaibhav, could you please reach out to us at email@example.com. We'll be able to guide you better.
Fine ...very good