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Overview of budgets

For All Accounts

Priyanka D avatar
Written by Priyanka D
Updated over a month ago

Permission required: Users with the Admin Profile, Department/Project Managers can access this feature.

Regional Availability: Australia, India, Indonesia, Singapore, United States


Overview

Budgets are a tool used to track, group, and organize spend across your organization. They provide a clear and organized view of your financial operations. Account admins have the ability to create budgets.

Once a budget is created, admin or department/project managers can then modify the budgets. Spend limits of a budget, the selected budgeted for module: that could be all cards, reimbursements or bill payments.

If an member is a manager, they can view all budgets they manage, and edit various aspects of the budget such as the budget name, limit, and members.


How to create a budget?

Every budget is defined against either a department or a project that has been established within the company. We cannot create a budget separately for any other module.

Whenever a new department is established we can assign a budget specifically for that department. Similarly, when initiating a new project it's possible to define the budget and set up a new budget for that particular project.

If there's a need to modify existing budgets, this can be done from the respective department/project's tab by selecting any department/project and accessing the department/project's budget section. Here, we can allocate a budget for the selected project or if a budget already exists, we have the option to edit it

Another method to edit budgets is directly from the budget page. We can select any budget that has been previously established for a specific department or project and make necessary adjustments to that particular budget within the respective department or project.


Spending from a budget

After setting a budget and choosing which modules will be funded in a specific department or project, any card expenses, reimbursements, or bill payments from that department or project will decrease the available budget balance.

If the budget is fully utilized, any further expenses, reimbursements, or payments will be declined until the budget limit is raised.

All transactions recorded against the budget can be viewed in the budget tracker, which also provides a quick analysis of the percentage spent by each module.


Flexible & non-flexible budgets

When setting up a budget, you can choose between a flexible budget and a non-flexible budget.

A flexible budget allows for spending beyond the initially allocated amount. If you exceed the set limit, the budget will not prevent further transactions; instead, the balance will turn negative. This indicates that the budget can adjust to accommodate additional expenses, allowing continued spending even when the predefined limit is surpassed.

On the other hand, a non-flexible budget strictly adheres to its set limit. Once the allocated funds are depleted, any additional transactions are automatically declined, preventing any overspending.

Both types of budgets—flexible or non-flexible—can be defined either when creating a new budget or by modifying an existing one, suitable for specific departments or projects.

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