Understanding Employee Expense Budgets

The Budgets module in Zoho ERP helps organizations plan, monitor, and control spending. Since budgeting is used at different stages of business operations, budgets are categorized to separate operational spending control from financial planning and reporting.

To support this, budgets are categorized into Employee Expense Budgets and Company Budgets in Zoho ERP. Each budget type serves a different purpose and is used by different teams.

Organizations track budgets from two perspectives:

• Day-to-day spending control, where teams need to know how much they can spend before submitting expenses or purchase requests.
• Financial planning and accounting, where finance teams compare actual financial results against planned budgets.

Employee Expense Budgets are used to control and monitor operational spending before or while expenses and purchases happen.

Employee Expense Budgets help you:

• Set spending limits for employees, departments, or categories.
• Track expenses, purchase requests, and other spend transactions against budget limits.
• Get alerts or warnings when spending approaches or exceeds the budget.

Employee Expense Budgets are mainly used by employees, managers, and finance teams to ensure spending stays within approved limits.

You can create budgets for your entire organization or for individual employees on a monthly, quarterly, half-yearly, or annual basis.