‫The most popular form of organizational budgeting is zero based budgeting, often referred to as ZBB.
‫What the ZBB approach was essentially changing our financial mindset, we're being forward thinking
‫and forgetting the past. In zero based budgeting
‫the current year's budget is prepared from scratch without considering the budget of the previous year.
‫It's very important to remember no to budget programs look exactly the same, but there are similar
‫trends in how companies are implementing them.
‫Is zero based mindset means starting from scratch and building up what your cost should be based on
‫the outcomes you want.
‫This is an alternative approach on the practice of examining past results and incrementally carving
‫out cost, project managers must be able to justify every single expense.
‫No expenses are automatically approved as zero based budgeting is very tight.
‫And this approach, we aim to avoid any and all expenditures that are not considered absolutely essential
‫to the companies of profitable operation.
‫This kind of bottom up budgeting can be a highly effective way to shake things up in the corporate world.
‫If implemented correctly, zero based budgeting can translate into a cost savings which drives growth
‫and strategic initiatives.