Businesses allocate budgets to have control over their expenditures. However, the spending of your business (known as actuals) is likely to be different from the budget you had set initially. So, it is important for you to know how your actuals vary from your budget to optimize your future budgets.
Budgeting in Zoho Expense allows you to set budgets and know how your business and your users are spending. Also, you can compare your budget with the actual spending of your business using insightful reports and make informed financial decisions.
You can create budgets for your entire organization or specific users on a monthly, quarterly, half-yearly, or annual basis. Let’s look at an example to understand this better.
Let’s say John, the Finance Manager, would like to keep the Lodging expenses in check while his employees undertake business trips. In this case, John can set up a budget for the Lodging category for his entire organization for a specific month and compare them with the actual amount they’ve spent during the month. This will help him decide a budget for the consequent month. Also, John can set up warning and blocking alerts to alert the users regarding the exhaustion of their budget amount.
In the above scenario, the allowance that John wants to provide for every employee differs with the hierarchy. So, John can configure different budgets based on the hierarchy of the employees. Also, John can set up budgets for specific users based on the allowance that can be provided to them.