Back to the drawingboard - Using Outdated Budgeting Tools to Reduce Expenditure Most companies are finding it hard to break even due to the ever

Back to the drawingboard - Using Outdated Budgeting Tools...

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Using Outdated Budgeting Tools to Reduce Expenditure Most companies are finding it hard to break even due to the ever increasing operation costs. Rising interest rates, wages and increased dollar value put companies under pressure because such factors make it difficult to generate enough revenue. These challenges have motivated business leaders to seek the council of budgeting tools developed in as late as the 1970s. Companies are now adopting the zero-based budgeting (ZBB) programs because they promise to raise savings levels by billions of dollars. Consulting experts indicate that the use of zero-based budgeting is poised to rise in 2017. What Does ZBB Entail? ZBB is a financial approach that calls for company managers to account for each and every product in their budgets right from scratch. Unlike the current accounting programs that require a financial year to start from the previous budget, this method tries to give a fresh approach for the new budget. Using the ZBB method, organizations

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