Zero based budgeting: To make a zero-based budget

To make a zero-based budget, list your income, plan your expenses, make sure income minus expenses equals zero, track expenses, and create a new budget every month. Guide to Zero-Based Budgeting & its meaning. We discuss zero-based budgeting features, process, examples, steps, advantages & disadvantages. Zero-based budgeting starts from zero, rather than a traditional budget that is based on previous budgets. With this budgeting approach, you need to justify each and every expense before adding it to the actual budget. Zero-based budgeting is a method of budgeting that starts each department's budget at "zero"and requires each line of a business's expenses to be justified. This budgeting method stands in contrast with traditional budgeting, which relies on past budgets and only justifies changes to historical budgets. The term "zero-based budgeting" originated from Peter Pyrrh's 1970s book, Zero Based Budgeting: A Practical Management Tool for Evaluating Expenses, however the term has taken on a new ...