‫I'm making the decision to move forward with zero based budgeting.
‫It's best to have a high level understanding of what it takes to implement this budgeting process.
‫Now let's remember what zero based budgeting we're starting at ground zero.
‫So the first step is creating the budget from scratch without using last year's actuals as the baseline.
‫Think about all the potential costs that can be used in this particular budget, and we'll start writing
‫line items from there.
‫Or you can start by even categorizing costs.
‫Step two is more of the evaluation phase.
‫Every potential cost within your budget proposal will need to be evaluated so that you can eliminate
‫unnecessary activities or even reduce activities which may seem redundant.
‫Step three for every cost that you've identified in your budget proposal, you now need to justify every
‫component of this particular cost and identify areas that may seem a bit cost effective or relevant,
‫even items which may seem to be driving the savings.
‫Make sure you pinpoint those items.
‫Step four is more of streamlining the process, determining what activities should be performed by what
‫resources, and thinking about how you can automate these particular activities.
‫This should be included in your proposal as well.
‫Step five is all about execution.
‫Once you've created your proposal and your budget template, it's time to roll off the plan of communication
‫and the execution process, identifying stakeholders roles and responsibilities.
‫Now you're ready to implement zero based budgeting, and we'll focus on your proposal and cost estimating
‫activities and more detail and the upcoming lectures.