Zero-Based Budgeting (ZBB) is a spend management process developed by the government in the 70’s, but it’s gaining renewed attention as a creative cost-savings approach. This method requires starting afresh each budgeting period while prioritizing expenses based on value and necessity rather than historical budget data. Every dollar is precisely allocated by departments, projects, or categories while aiming for a zero balance by month-end. 

The success of this methodology hinges on meticulous data and accurate reporting to provide insight into expenses and cost-drivers and may also necessitate a shift of mindset. However, once cost centers are identified and ZBB is applied, all that remains is to monitor tailored KPIs and reap the savings. While transitioning to this “budget-from-scratch” method may require an additional time investment, it has proven to be an effective tool for value and cost management and, if needed, can be implemented in stages to streamline rollout. 

To learn more about NetSuite can provide detailed data to improve your budgeting process with ZBB and other models, watch this video or schedule an introductory call with RCP using this link https://calendly.com/rapidcloudpartners/introductory-call.