Fundamentals of Zero Based Budgeting
What you'll learn
- What is Zero Base Budgeting
- Steps in Zero Base Budgeting
- Why Zero Base budgeting is important than traditional budgets
- Case Study to understand practical implications
- Benefits of ZBB and use cases
Requirements
- No prior accounting knowldge is required
Description
Zero-based budgeting (ZBB) is a method of budgeting in which all expenses must be justified for each new period. The process of zero-based budgeting starts from a "zero base," and every function within an organization is analyzed for its needs and costs. The budgets are then built around what is needed for the upcoming period, regardless of whether each budget is higher or lower than the previous one.
Traditional budgeting calls for incremental increases over previous budgets, such as a 2% increase in spending, as opposed to a justification of both old and new expenses, as called for with zero-based budgeting.
Traditional budgeting also only analyzes only new expenditures, while ZBB starts from zero and calls for a justification of old, recurring expenses in addition to new expenditures. Zero-based budgeting aims to put the onus on managers to justify expenses and aims to drive value for an organization by optimizing costs and not just revenue.
As per the latest Survey by Delloitte zero-based budgeting users appear to be moderately more successful at meeting their cost targets. Sixty-three percent of respondents, globally, who did not conduct ZBB did not meet their cost targets, while the same is true for 58 percent of those that did use ZBB. Although ZBB users in the US reported higher cost program failure rates than non-ZBB users (65 percent vs. 57 percent), in all other regions the failure rate for ZBB users was lower than for non-ZBB users (57 percent failure rate vs. 68 percent in Latin America; 52 percent vs. 56 percent in Europe; and 60 percent vs. 71 percent in the Asia Pacific).
In this course we will explore practical aspects of Zero Based Budgeting.
Who this course is for:
- business leaders
- business managers
- financial professional
Instructors
- 4.4 Instructor Rating
- 1,217 Reviews
- 139,119 Students
- 13 Courses
PROFILE & STRENGTHS
Mr Manish Gupta is an experienced hospitality finance professional, having a blend of financial core expertise with hands-on training in managing hotel operations and business development.
Having worked as an Auditor for 7 years, he moved into finance management for brands like Parsvnath Developers and Shangri-La Hotels & Resorts and currently serving as the CFO of HTOO Hospitality.
His role is to spread the finance function for the largest hospitality in Myanmar owned and managed by one of the biggest business houses in Myanmar. They have 16 operational and underdevelopment High-end boutique resorts (covering an overall room inventory of 800+ rooms), 2,000 employees. Most of the properties are leaders in their region on trip advisor and won various travel awards over a period of time.
He has proven experience in setting up the foundation for sustainable growth (in the form of management information systems, restructuring), ERP implementation, gear towards IPO readiness & IFRS convergence. With such a great skill set, the students can be assured about the quality of training with his expertise.
He has been teaching at various institutions in Myanmar such as Swiss Business School, American Hospitality Institute of Myanmar with students ranging from directors to CEO of various companies.
ACADEMIC & PROFESSIONAL CREDENTIALS
Chartered Accountant – 2005 (Member of the ICAI) form Institute of Chartered Accountant of India
Company Secretary – 2005 from Institute of Company Secretaries of India
DISA (Diploma in Information System Audit) Supervisory Excellence (Online) & Business Leadership form e-Cornell University
Strategic Leadership from Shangri-La Global University
- 4.2 Instructor Rating
- 422 Reviews
- 78,744 Students
- 13 Courses
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