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Zero-based budgeting

What is zero-based budgeting?

Zero-based budgeting - is a way of managing finances in which every company expense is justified anew, rather than being based on past budgets.

For example, instead of automatically allocating money to marketing, the company analyzes which campaigns will bring the most value and why. This helps to focus resources on the really important tasks.

This approach allows you to identify unnecessary costs and optimize your budget. However, the process requires time and careful analysis, which can be challenging for large companies.

Often zero-based budgeting is used during crisis periods when there is a need to cut costs.

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