For your business performance to be successful in the long run, budget management is crucial. However, this can be a time-consuming task. In this article, we explain what Zoho Books can do for businesses as well as how to start budgeting with the software. 


What is Zoho Books?

Zoho Books is an intelligent cloud-based accounting system designed to enable small and medium businesses to meet their accounting needs and simplify their financial management. 

It allows you to manage all of your company’s bills and invoices in one safe place, balance your bank statements, manage your expenditures and cash flow, keep an eye on projects, and forget about MTD compliance concerns. With Zoho Books, you can create and send invoices, keep track of time and expenses, and generate reports. Zoho Books is, in short, a straightforward online accounting software program that syncs with your bank accounts, credit cards and covers all the essentials.

SMEs require reasonably priced software that can expand along with their firm. Zoho Books provides three pricing tiers, like many other platforms for accounting software. You get a lower rate if you decide to pay annually rather than on a monthly basis:

  • Three users are supported with the $ 15 monthly Standard plan. You can track mileage and expenses, create invoices, reconcile transactions, manage projects and timesheets, and handle up to 50,000 invoices, see all feature of the plan here
  • The Professional package enables five users for $ 40 per month. In addition to everything included in the basic plan, you can also create sales orders, manage purchase orders, issue recurring invoices, and work with multiple currencies.
  • The Premium plan, which supports 10 users, costs $ 60 per month. Everything covered by the other two subscription packages is included, in addition to a vendor portal, a custom domain, budgeting tools, and connection with Twilio and Zoho Sign.

Financial guide for SMEs


What can Zoho Books do?

Unlike most other accounting software options, Zoho Books can save you the drudgery of having to spend endless hours entering data. As a result, you will have more time and energy to focus on growing your business.

One of the most time-consuming facets of managing a business is accounting. The management task automation and online payment capabilities of Zoho Books go a long way towards helping companies reduce the hours and money spent on accounting.

Here are different ways in which Zoho Books can optimize your financial operations:

  • Increased automation: By streamlining your workflow, Zoho Books helps you save time. The software can be configured to automatically carry out operations such as sending regular invoices and payment reminders, keeping track of costs, and alerting you when your bills are due. When transactions are imported daily from your bank feed, you can configure bank rules to automatically categorize them. The software detects potential matches when you reconcile your accounts.
  • Efficient billing: You can easily turn sales orders or estimates into invoices, amend the invoices as necessary, and drag and drop lines to reorder them. You also have the option to send them right away or set a later time for sending. The software maintains an audit trail, allowing you to see which transactions are linked, who generated or modified them, and when the change was made.
  • Online payments: You can link your account to well-known payment processors like Authorize.Net, Braintree, PayPal, Square, Stripe, WePay, Worldpay, and 2Checkout to let your clients pay their bills right away online. You can receive money and keep track of paid and unpaid invoices more effectively this way. Additionally, it offers your customers a simple and easy way to pay for your goods and services.
  • Mobile app: Like many other accounting apps, Zoho Books features a mobile app. The app from Zoho Books truly stands out as it works on more platforms than others, including Windows phones, Android phones, tablets, smartwatches, iPhones, iPads, iMessage, Apple Watch, and Android phones.

Invoices and estimates can be managed, payments and costs can be tracked, receipts can be uploaded, reports can be generated, and your dashboard provides you with key insights. In addition, it allows for several users, and you have control over the data they can access. Tools for managing projects and inventory tracking are available on Zoho Books. It features task management plans, and you have the option of billing a fixed amount, project hours, task hours, or personnel hours.

How to reduce accounting costs


How to start budgeting with Zoho Books

1. Create your budget

It can take a lot of time to manually enter the amounts for each period when creating budgets. Thankfully, with Zoho Books, you can establish budgets using one of three techniques. You can:

  • Automatically fill out your cost and income accounts
  • Prefill based on actuals from prior years
  • Manually enter data

Creating a budget based on the first period is a frequent budgeting technique. Using this strategy, you will be estimating your budget for future periods. You can input the budget for the first period in Zoho Books and then indicate a sum or a percentage by which it should increase or decrease for the next period. The budget amount will automatically be filled in for each period (monthly, quarterly, or half-yearly) when you apply the change.

Here are different ways to automatically fill in your amounts:

  • Apply a set budget for each time period.
  • For each period, increase by a certain amount.
  • For each period, adjust by a certain percentage.
  • Prefill based on actuals from the prior year.

You can pre-fill your budget using any of your previous years’ real numbers if you want to utilize the prior year’s actuals as a benchmark. You can increase the pre-filled quantities by an absolute amount, or a percentage for each period if your company is expected to perform better than it did in prior years.

Similarly, you can automatically fill in the amounts with a downward adjustment if you want to initiate budget cuts. You can also manually enter the amounts for each period if you need to create budgets for your income and expense accounts that are distinct from one another and don’t follow a pattern.

2. Assess the performance of your organization and compare actual results to budgets

You should compare your company’s actual performance to the budgets you establish for it at the end of each financial period. You can use a detailed report in Zoho Books to compare your budgets with your actuals. You may find a list of accounts in this report along with their budgets, actuals, and variances. You can find the accounts that are over budget by observing trends between actuals and budgets. Then, you can take the appropriate actions to bring these accounts back under budget in the future.

3. Make sensible choices

Finding areas of concern that need your attention is important once you have established your budget and compared it to the actual performance of your firm. It will be simpler for you to make decisions about how to spend more effectively in the future if you identify these problem areas in your company. Additionally, this knowledge will assist you in setting more sensible goals and setting your company up for success.


Zoho Books consultation services

Effective accounting platforms are beneficial for small and medium-sized businesses (SMEs) in Quebec. Building in-house knowledge typically costs a lot of money, and the rewards can take a while to manifest. Two clicks is all it takes with payroll software.

Budget management is made simpler for both companies and employees when software is used. If you are looking for a secure, affordable way to handle taxes, social benefit deductions, and payroll for your employees, look no further than Cofinia. Our Zoho Books experts can help you optimize your accounting and financial operations. 

Get in touch with a Zoho Books expert