3rd April 2012 From India , Pune
3rd April 2012 From Pakistan , Lahore
The defining factor of ZBB is that each budget for the financial year in question is a blank slate. So, each expense in the budget must be justified and clearly linked to the stated strategic goal of the entity. Where do we see this style of zero-based budgeting most often? Most recently, food businesses.
20th July 2018 From United States, Clifton
With zero-based budgeting, you need to justify every expense before adding it to the official budget. The goal of zero-based budgeting is to reduce spending by looking at where costs can be cut.
Your employees might be involved in creating a zero-based budget. You can ask employees what kind of expenses they will have and figure out where you can reduce business expenses . If an expense does not benefit the business, or if it can be done in-house, it is axed from the budget.
Zero Budgeting Process:
There are a few different steps in zero-based budgeting to keep in mind. The process of zero-based budgeting follows the same basic steps:
1. Identify business goals
2. Develop and analyze new ways to achieve goals
3. Discover new ways to fund business processes
4. Prioritize funds
By following these zero-based budgeting steps, you will determine what expenses go toward achieving business goals that directly benefit your company. Then, you can find new ways to spend.
26th June 2019 From India,