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 Procurement’s Budgeting feature, you can:
- Set budgets for your organization on a monthly, quarterly, half-yearly, or annual basis.
- Compare your budgets against actual spending with the Budgets Vs Actuals reports.
Scenario: John, the Finance Manager at Zylker, wants to keep procurement spend under control across the organization. To achieve this:
- He sets a monthly budget for all categories in his organization.
- At the end of each month, he compares the budgeted amount with the actual spend to adjust the budget for the next month.
- He configures warning alerts to notify users when spending is nearing the budget limit, and blocking alerts to prevent purchase requests from exceeding the budget.
Using Zoho Procurement, John can:
- Create budgets for different categories such as Office Supplies, Equipment, or Services.
- Monitor actual spend vs. budget to ensure better cost control and compliance.