zero based budgeting
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What is a Zero Based budgeting?

What is zero based budgeting in hotels…

Zero-based budgeting is a method of budgeting in which all expenses or revenue are built from the ground up. You need to have reasons for all revenue and expenses. 

If your manager has told you to do zero-based budgeting and you are wondering what to do, then this video is for you.

Zero-based budgeting is a method of budgeting in which all expenses or revenue are built from the ground up. You need to have reasons for all revenue and expenses.

Once you justify the requirement, the budget is approved even if it is above or below the benchmark or last year’s budget.

While it takes more time to make this detailed budget, you should do this for at least one department every year.

Why is a zero based budget important. Because in a traditional budget, every year we add a percentage over the previous year. That automatic increase are added every year and sometimes can inflate cost too much. A zero-based budget can correct that by thinking of every expense and looking at the current expenses you need to make.

If you wish to buy a budget template for your hotel click here.

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