Zero-Based Budgeting – Is it Right for Your Business?

Redwood City, CA – April 21, 2016 –

Posted by John O'Rourke

There are a variety of different budgeting techniques that businesses can utilize to allocate capital across departments. 

Traditional budgeting is the most commonly-used approach. This is the top-down method of targeting, applying a growth rate to prior year budgets, that many organizations employ. Zero-based budgeting is a less common approach that's getting more attention recently, and it can provide some benefits over traditional budgeting.

The rolling forecast, which is increasing in popularity, is another budgeting approach that can be highly useful to fast-growing or dynamic enterprises. The tactic you utilize will largely depend on your business model, as each budgeting approach has pros and cons that are contingent on the culture, type and size of the business.

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