Create a budget

Create a budget that you can compare with actual income and expenditure throughout the year. If you use tracking, you can also set up budgets for tracking categories. Save your budget regularly to avoid losing your updates.

Your user role will determine whether you can create a budget.

Set up an overall budget

Use the Budget Manager worksheet to set up your overall budget. You can only have one overall budget per organization, but you can create other budgets. You can edit an overall budget but you can't rename it, copy it, or delete it.

  1. Go to Reports, then Budget Manager to view your overall budget.
  2. Select your start date.
  3. To compare with actuals, set how far back you want to view (3, 6 or 12 months). Select 'None' if you don't want to view actuals.
  4. Select the period you want the budget to cover. You can choose 3, 6, 12 or 24 months.
  5. Click Update to filter the budget by your selections.
  6. Enter budgeted amounts into each account field. Use a simple formula to fill out months using the green arrows.

    Fill out rows using simple formulas

  7. Save at any time to preserve your changes.

Budget Manager fields.

Enter budgeted amounts

Fill out rows using simple formulas

You can fill out rows automatically using a simple formula. Click into the box you want to base a formula on, then click the green arrow to start.

Click the arrow to apply a formula to fill other rows.

Choose:

  • Apply fixed amount to each month to fill other boxes with the same amount
  • Adjust by amount each month to increase by that amount each month
  • Adjust by percentage each month to increase by a certain percent each month.

Click Apply to update the worksheet.

Other columns in that row are filled with the same number.

To apply a formula to all accounts, click on the green arrow next to a month name in the header. From here, you can have the same formula options as before, which you can now apply to the entire worksheet. In addition, you can clear all months from that point on.

Click Apply to update the worksheet.

Xero will round decimals

If you enter decimals into the Budget Manager they will be rounded:

  • Up to the nearest dollar if 50 cents or over
  • Down to the nearest dollar if under 50 cents.

Set up a new budget with or without tracking

You can use the Budget Manager worksheet to set up a budget for each of your tracking categories. You can also follow these steps to create new budgets without tracking. Just select the 'Do Not Filter' option in step 3.

  1. Go to Reports > Budget Manager.
  2. From the Select Budget drop-down, click + Add New Budget.
  3. Give the new budget a name, then select a tracking category (or 'Do Not Filter' for no tracking).
  4. Select your start and end dates.
  5. To compare with actuals, set how far back you want to view (3, 6 or 12 months).
  6. Click Update to filter the budget.
  7. Enter budgeted amounts into each account field. Use a simple formula to fill out months using the green arrows.

    Fill out rows using simple formulas

  8. Save at any time to preserve your changes.

Tracking

Edit a budget or create a copy

You can edit an overall budget by making changes directly on the worksheet and clicking Save. If you have set up other budgets, you can edit or rename them using the steps below. You can also create a new budget based on an existing budget (other than your overall budget) by saving it as a copy.

  1. Go to Reports, then Budget Manager.
  2. Choose the budget you want to edit from the Select Budget drop-down.
  3. From here, you can make any changes as needed:
    • Change the period or update any budgeted amounts.
    • On a tracking budget, click 'Edit' to change the name or the tracking category.
    • Create a new budget based on a copy. Click 'Edit' and rename. Then click Save and select Save as Copy.
  4. Click Save.

You can also export your budget in CSV format, and import a new or updated one.

Import or export your budget

Monitor your budgets in Xero

You can keep track of any budgets you have created in these reports: