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‫The most popular form of organizational budgeting is zero based budgeting, often referred to as ZBB.

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‫What the ZBB approach was essentially changing our financial mindset, we're being forward thinking

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‫and forgetting the past. In zero based budgeting

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‫the current year's budget is prepared from scratch without considering the budget of the previous year.

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‫It's very important to remember no to budget programs look exactly the same, but there are similar

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‫trends in how companies are implementing them.

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‫Is zero based mindset means starting from scratch and building up what your cost should be based on

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‫the outcomes you want.

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‫This is an alternative approach on the practice of examining past results and incrementally carving

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‫out cost, project managers must be able to justify every single expense.

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‫No expenses are automatically approved as zero based budgeting is very tight.

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‫And this approach, we aim to avoid any and all expenditures that are not considered absolutely essential

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‫to the companies of profitable operation.

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‫This kind of bottom up budgeting can be a highly effective way to shake things up in the corporate world.

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‫If implemented correctly, zero based budgeting can translate into a cost savings which drives growth

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‫and strategic initiatives.