Page 2 - ZBB Expense Line

Zero-Based Budget (ZBB) Expense
How Do I Create a Zero-Based Budget (ZBB) For an Expense?
Overview
Zero-based budgeting (ZBB) is a budgeting approach that involves developing a new budget from “zero”, versus starting with the previous period’s budget and adjusting it as needed. In theory, this process aligns with priorities across the organization which endows people with ownership over their spending and how they channel savings into new sources of growth.
Navigation
Axiom Tool > Navigation Pane > Reports > System Files > Home Files > Budget Home Page
Zero-Based Budget (ZBB) Benefits
Cultural Change
Transparency
Benefits of ZBB
Standardization
o Transparency
Creates unprecedented spend visibility into
where spend is incurred (location/function)
o Standardization
Drives consistency of the budgeting process
and standards across the entire organization
o Accountability
Establishes business ownership of budgets and encourages everyone to treat Emory’s money as their own
o Efficiency
Focuses on the “need” for spending, rather
than building off history
o Cultural Change
Challenges Budget Owners to behave like
owners of the business
Efficiency
Accountability
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Last Revised on 5/20/2022
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