Budgeting is an essential aspect of financial planning, whether it’s for individuals, organizations, or governments. It’s crucial in managing resources effectively and ensuring that expenditures align with available funds. Among the various budgeting methods, Historically Based Budgeting (HBB) and Zero-Based Budgeting (ZBB) are the most used approaches. Each method has distinct philosophies, processes, and outcomes, […]
Tag Archives: Zero-Based Budgeting
Zero-based budgeting is a financial strategy where each budget cycle starts from scratch, with no previous budget assumptions. Every expense must be justified based on current needs and priorities, rather than historical spending. This approach helps organizations optimize resources, eliminate unnecessary costs, and align spending with strategic goals.