The Budgeting feature provides a way to allocate funds across different accounts or categories, supporting precise spending control and better financial planning. Follow these steps to create a budget entry and categorize it to track expenses effectively.
To start creating an entry, you may follow the steps below:
Step 1: On the menu pane, go to Accounting and select Budgeting.
Step 2: Click on + New Budget or the PLUS icon in the center of the table to create a new budget.
🔶Note: The "+" icon only appears if no other budgets have been created yet.
Step 3: Fill in the Budget Form
- Track Categories: Budgets can also be allocated to specific departments or categories.
- Budget Name: Enter a descriptive name for the budget.
- Effective Year: Specify the budget's effective year.
- Type: This section will indicate the frequency of the expense, which is expressed as Yearly, Quarterly, Monthly. A tickbox can be checked or unchecked if you need this report to recur.
- Budget Amounts: Assign budget amounts or distribute funds to the correct accounts or categories.
🔶Note: The list under the column of Account can be expanded and is broken down depending on its selected frequency (prior step): monthly, quarterly, yearly.
Step 4: Select Notification Type: This feature is enabled so you will be notified if your budget threshold is breached. There are 2 options that you can choose from
- Budget Crossed: An alert is triggered when the budget limit is exceeded in dollar value. You will have to save an email address which will be the recipient of the notification.
- Budget Crossed Percentage: An alert is triggered when the budget threshold is exceeded by a certain percentage.
Step 8: Save your work.
After clicking on SAVE, you will be routed to the main section with a prompt indicating a successful entry.