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Creating a Budget

Set up overall spending limits for your rewards programme

Tahera Barok McArthur avatar
Written by Tahera Barok McArthur
Updated this week

Create budgets to control reward spending at an organisational level. Budgets contain spending pots and provide visibility into what's available to spend.

Purpose: Establish controlled spending environments while encouraging recognition through clear budget visibility.

⚠️ Note: You need Rewards Admin permissions to create budgets.

What Budgets Control

Budgets are the top-level containers for your rewards programme:

  • Total spending limit for the year

  • Who can create spending pots within the budget

  • Who approves rewards that exceed limits

  • Budget period aligned to your financial year

Before You Start

Prerequisites:

  • Rewards Admin access in Mo

  • Decided on budget amount for the year

  • Identified budget collaborators and approvers

  • Understood your organisation's financial year dates

📖 Recommended: Review the Mo Rewards Quick Guide to understand how budgets fit into the overall rewards structure.


Accessing Budget Creation

  1. Click Rewards in the sidebar

  2. Click Manage in the top right

  3. Click Create Budget button in the top right

Creating Your Budget

Step 1: Budget Information

Budget Name

  • Enter a clear, descriptive name

  • Examples: "UK Retail Budget", "Sales Department Budget", "2025 Recognition Budget"

  • Use names that indicate geography, department, or purpose

Currency

  • Automatically set based on your region

  • Cannot be changed after creation

  • Ensure this matches your organisation's financial reporting

Annual Budget Amount

  • Enter the total amount available for the year

  • This is your spending cap for all spending pots within this budget

  • If using currency system: Enter monetary amount (e.g., £10,000, £50,000, $25,000)

  • If using points system: Enter points value (e.g., 10,000 points, 50,000 points)

  • Consider carefully - this controls all spending for the year

Budget Start Date

  • Select when the budget becomes available

  • Budgets run for 12 months from this date

  • Align with your financial year for easier reporting

  • Example: 1 April 2025 if your financial year starts in April

Step 2: Budget Collaborators

Budget collaborators can:

  • Create spending pots within this budget

  • Change budget approvers

  • Manage the structure of reward spending

Who should be collaborators:

  • Heads of departments

  • Regional managers or directors

  • HR team members managing rewards

  • Anyone structuring rewards for their section

How to add collaborators:

  • Select individual users by searching their names

  • Select entire groups (e.g., "Department Heads" group)

  • Add multiple collaborators as needed

Why collaborators matter: They have significant control over budget allocation and spending pot creation, so choose trusted individuals.

Step 3: Budget Approvers

Budget approvers can:

  • Approve or decline rewards from this budget

  • Handle rewards requiring approval

  • Make decisions when spending would exceed budget

When rewards require approval:

  • Reward settings require approval

  • Approving the reward would exceed budget limits

  • Spending pot is over its allocated amount

Who should be approvers:

  • Finance team members

  • Senior leadership

  • HR directors

  • Anyone with oversight of spending

Note: Users with Rewards Admin role can also approve rewards, even if not listed as budget approvers.

How to add approvers:

  • Select individual users by searching their names

  • Select entire groups (e.g., "Finance Team" group)

  • Add multiple approvers for backup coverage

Step 4: Create the Budget

  1. Review all settings to ensure accuracy

  2. Click "Create Budget" button at the bottom

  3. Budget appears on the budgets page

  4. You can now create spending pots within this budget


Understanding Calculated Max Yearly Spend

After creating spending pots within your budget, Mo calculates the maximum possible yearly spend.

How It's Calculated

For each spending pot, Mo multiplies:

  • Number of people with access × Amount each person can spend × Number of cycles per year

Then Mo adds up all spending pots to show total potential spend.

Example Calculation

Budget: £30,000 annual cap

Spending Pot 1 - Engineering:

  • 5 people

  • £200 per person per cycle

  • Monthly cycle (12 cycles per year)

  • Calculation: 5 × £200 × 12 = £12,000 per year

Spending Pot 2 - Customer Service:

  • 3 people

  • £400 per person per cycle

  • Quarterly cycle (4 cycles per year)

  • Calculation: 3 × £400 × 4 = £4,800 per year

Spending Pot 3 - Sales:

  • 10 people

  • £1,000 per person per cycle

  • Bi-annual cycle (2 cycles per year)

  • Calculation: 10 × £1,000 × 2 = £20,000 per year

Total Calculated Max Yearly Spend: £12,000 + £4,800 + £20,000 = £36,800

Result: This exceeds the £30,000 budget cap, so rewards will require approval.

What This Means

If calculated spend is within budget:

  • Rewards process normally

  • No automatic approvals required

  • Spending stays controlled

If calculated spend exceeds budget:

  • All issued rewards go to approval queue

  • Budget approvers must review each reward

  • Options: Increase budget cap or reduce spending pot allocations

Why it's useful:

  • Early warning system for budget overruns

  • Helps plan spending pot allocations

  • Prevents surprise budget exhaustion

  • Guides adjustments before problems occur


Managing Your Budget

Viewing Budget Status

From the Budgets page, you can see:

  • Budget name and amount

  • Calculated max yearly spend

  • Current spending progress

  • Associated spending pots

Editing Budgets

To modify an existing budget:

  1. Find the budget on the Budgets page

  2. Click 'Edit' to open budget details

  3. Edit settings as needed

  4. Save changes

What you can edit:

  • Budget collaborators

  • Budget approvers

  • Budget amount (with caution)

What you cannot edit:

  • Budget name

  • Currency

  • Start date

Monitoring Budget Health

Regular checks recommended:

  • Monthly review of spending progress

  • Quarterly assessment of calculated max spend

  • Adjust spending pots if approaching limits

  • Plan for next year's budget based on usage


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