The A to Z of Profit Growth – Z is for Zero-based Budgeting

It’s time for the last A to Z of Profit Growth… This week Z is for Zero-based Budgeting!

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KMA The A to Z of Profit Growth – Z is for Zero-based Budgeting

That’s it for this week’s edition and the A – Z of Profit Growth series!

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Hi everyone. Can you believe it’s our last profit growth advice already? Z is for zero-based budgeting. Zero-based budgeting is a great method for preparing cashflow budgets and operating plans at low cost. This means it’s a great way of saving money, and in turn contributing to profit growth. Unlike the traditional budgeting, which assumes that past sales and expenditure will continue, zero-based budgeting requires each activity to be justified on the basis that it has a cost benefit for the business. It basically assumes that financially you are starting from scratch, from zero. All business activities are then ranked according to priority. So zero-based budgeting provides a cost effective basis for resource allocation.

I hope you found my A to Z of profit growth useful. If you have any questions or need advice, don’t hesitate to get in touch on the details below.

Tags: Profit growth, The A-Z of Profit Growth, Zero-based Budgeting