What is zero-based budgeting? Does it really help?

[Good-Person]

We know that budgeting could be one of the most difficult things when it comes to managing finance. Zero-based budgeting is a kind of budgeting technique that involves creating a budget for a specific purpose. This can help you to reach financial goals. So, does it really help?

 

[Heatman]

Well, I believe that all budgeting involves creating a financial plan on how to spend on specific projects. What I don't understand is how you can be able to to have a zero-based budget. Without money, there's no way you can work with any budget but in business, it's all about allocates funding based on project's importance-efficiency and not the company's business history.

 

[Good-Person]

Well, I believe that all budgeting involves creating a financial plan on how to spend on specific projects. What I don't understand is how you can be able to to have a zero-based budget. Without money, there's no way you can work with any budget but in business, it's all about allocates funding based on project's importance-efficiency and not the company's business history.

There are many different kinds of budgeting plans and zero-based budgeting can help you deal with cost that may also involve product delivery and manufacturing process as well. This is why big businesses use this budgeting technique in many ways.