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How to create a budget

A budget is a spending limit you assign to users. It controls how much they can spend and how often the limit resets.

SettingWhat it controls
NameWhat the budget is called (e.g. “Marketing Q1”, “Travel”, “Admin Team”)
LimitThe maximum amount users can spend per cycle
Start dateWhen the budget becomes active (default: Immediately)
Expiry dateWhen the budget stops (default: Never)
CycleHow often the limit resets (One-time, Daily, Weekly, Fortnightly, Monthly)
UsersWho can spend from this budget
Shared / Individual limitsWhether all users share the budget limit or each gets their own cap
Default category / tagsFallback category and tags AI Bookkeeping applies to spend from this budget (Premium)

Budget cycles by plan

CycleEssentialsPremium
One-time✓✓
Weekly✓✓
Monthly✓✓
Daily—✓
Fortnightly—✓
Custom reset date—✓

For help choosing the right cycle, see Understanding budget cycles.

How to create a budget

  • Click Budgets in the sidebar.
  • Select Create New Budget.
  • Enter a Name for the budget (e.g. “Marketing Q1”).
  • Set the Limit — the maximum amount per cycle.
  • Choose a Start date (defaults to Immediately) and Expiry date (defaults to Never).
  • Pick the Cycle — One-time, Daily, Weekly, Fortnightly, or Monthly.
  • Click + Add in the Users section to add members who will spend from this budget.
  • Toggle between Shared limit (all users share the total) or Individual limits (each user gets their own cap).
  • Click Create Budget.

Shared vs Individual limits

ModeHow it works
Shared limitAll users share the total budget amount — one person could spend it all
Individual limitsEach user gets their own cap within the budget

Tip: Individual limits are useful for shared budgets with multiple users. For example, a $2,000 monthly budget with 4 users and a $500 individual limit ensures no one person can spend more than their share.

Set a default category and tags (Premium)

A default category and tags tell AI Bookkeeping how to code spend from this budget when it can’t confidently determine a better match on its own. They’re optional.

Note: Default category and tags require the Premium plan. On the Essentials plan, this section doesn’t appear on the budget form.

  • Scroll to the Default category and Default tags section, below the Users section.
  • Choose a Default category from the dropdown.
  • Pick one or more Default tags from the dropdown.

If you use Xero

If your account is connected to Xero, the options in the Default category dropdown come from your Xero Chart of Accounts, and the Default tags come from your Xero Tracking Categories. Edit them in Xero, then refresh the sync. See Editing categories and tags with Xero.

Common questions

Can a user be in more than one budget?
Yes. Users can be members of multiple budgets. Each budget has its own limit and cycle.
Can I change a budget after creating it?
Yes. Admins can edit the name, limit, cycle, members, and all other settings at any time. See How to edit a budget.
What do users see when they have a user limit?
Users see their individual user limit as their available balance — not the total budget amount or other users’ limits.
What happens if I leave the default category and tags blank?
AI Bookkeeping still codes each transaction on its own. The defaults are only used as a fallback when it can’t confidently determine a better match.