- What are Expenses?
- Creating an Expense
- Recording a Mileage Expense
- Setting up your vehicle profile
- Adding Expenses in Bulk
- Recurring Expenses
- Mandatory Fields
- Make an Expense Reimbursable
- 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 home page of Zoho Books, and select Expenses.
- Click on the ‘+ New’ button and select ‘Record Expense’ to create a new expense.
- Enter the expense details such as an account to track it, payment method and the amount.
- Save the expense.
Adding Expenses in Bulk
There might be a scenario wherein either you or one of your employees had gone on a business trip. A lot of expenses in the form of Airfare, Hotel Accomodation, Food, Transport etc. are bound to be incurred. Instead of manually entering each expense separately, you can add multiple expenses at once and record it.
To add expenses in bulk:
- Click on the Purchases drop-down on the left sidebar and select Expenses.
- Click on the + New Expense button drop-down and select Bulk Add Expenses.
- You will see the Bulk Add Expenses section in the page that follows.
- Enter essential information such as Date, Category, Amount, etc.
- Check the Billable option if your expenses are billable.
- After entering the details of all the expenses, click on the Save button.
- This will save all your newly created expenses to the Expenses section.
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. You can access mileage preferences from More Settings -> Preferences -> Expenses.
Setting up your Vehicle profile
If you wish to assign different mileage rates for vehicles in your organization, you can make use of the Vehicle tab under Expense Preferences.
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.
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.
To set up a profile for your vehicle, follow the instructions below:
- Click on the Gear icon on the top-right corner, and select More Settings.
- Select Expenses tab under Purchases.
- Click on the Vehicle tab and click on + New Vehicle.
- Enter the vehicle name and click Save to add the vehicle profile.
Now, click on the Preferences tab under Expenses and click on + Add Mileage Rate.
- Select a date, choose the vehicle profile and enter mileage rate.
Note: The provision to choose Vehicle in Mileage expense will appear only if you enter mileage rate for that particular vehicle.
To record a mileage expense:
- Go to the Purchases tab on the home page of Zoho Books, and select Expenses.
- Click on the New drop-down present on the top right corner and select the Record Mileage option.
- When you record a mileage expense for the first time, you will be prompted with a setup screen to set your mileage preferences.
- Choose the default mileage unit (Km or Mile), and select a default category for your mileage expenses.
- Enter a start date and a corresponding mileage rate. This mileage rate will be used to calculate the mileage expense based on the distance traveled.
- Now, click on Save button to save your mileage preferences.
- You will now see a Record mileage form on the screen. You may also navigate to Expenses module, click on the + New drop-down and select Record Mileage.
- Enter the date on which the expense was made, and select a method through which you wish to record the distance traveled.
- If you know the exact distance traveled, select the Distance traveled option and fill the Distance field. If you wish to calculate your distance traveled based on the odometer reading, select the Odometer reading option.
- If you’ve chosen the Odometer reading option, enter the start reading and end reading from the odometer and the distance traveled will be calculated automatically.
- If your mileage expense involves tax, pick one from the drop-down.
- You can associate your vendor details from the Vendor drop-down.
- Choose a customer and check on the Billable option to bill the expense to your customer. This will allow you to create an invoice from the mileage expense.
- Click Save to save your newly recorded mileage expense.
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 home page of Zoho Books, and scroll down to Recurring Expenses.
- Click on the ‘+’ icon.
- Provide the required information, and hit Save.
You can make an existing expense recurring by clicking on the expense and selecting More - Make recurring. Enter the required information and hit Save.
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.
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.