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Zero-Based Budgeting

Zero-Based Budgeting (ZBB) ditches the traditional budget-based approach on previous years’ spending. Instead, every expense, from salaries to marketing, is treated as new and needs justification each budgeting period. This forces a company to analyze spending needs from scratch, identify potential inefficiencies, and prioritize how their resources will be allocated. ZBB can be time-consuming, but it can uncover cost-saving opportunities and ensure your budget reflects current priorities.

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