1. [ANEXO] "Save-to-transform as a catalyst for embracing digital disruption "
2. Zero based budget
2.1. Focus on what expenses are actualy necessary to the business in the upcoming period
2.1.1. All expenses must be justified for each new period
2.1.2. Zero-Based Budgeting Comes to Business Functions
2.2. Also known as "zero sum budget"
2.2.1. Income - Expenses = ZERO
2.3. It differs from traditional budgeting processes by examining all expenses for each new period, not just incremental expenditures in obvious areas.
2.4. Pros
2.4.1. It can help lower costs by avoiding blanket increases or decreases to a prior period's budget
2.4.2. Traditional budgeting may not allow cost drivers within departments to be identified. Zero-based budgeting is a more granular process that aims to identify and justify expenditures.
2.4.3. Zero-based budgeting is more than just a fresh start every year. It's an ongoing cost-measurement program that ensures every dollar is spent to advance a company's strategy. It can deliver increased margins, revenues and employee engagement. Leading companies see it not just as a simple new budget exercise, but more of a management system and cost philosophy.
2.5. Cons
2.5.1. Time-consuming process that takes much longer than traditional, cost-based budgeting.
2.5.2. The practice also favors areas that achieve direct revenues or production, as their contributions are more easily justifiable than in departments such as client service and research and development
2.6. Basic steps
2.6.1. Write down projected income, expenses and seasonal expenses and alocate every single dollar to match it
2.7. Exemplo
3. There are no BEST BUDGET
4. "We need to know where our money is going"
5. Traditional Budget
5.1. Comparing with the same Quarter from last year and the previous one right before the one being budgeted
5.2. Pros
5.2.1. It is easy to implement. Moreover can be prepared faster as not many changes are required in the previous year’s budget. This saves a lot of time and efforts of managers.
5.2.2. This is an old budget preparation method and most of the organizations are used to it. This brings stability in the functioning of an organization, as the financial activities are done with coordination and everyone knows what needs to be done.
5.3. Cons
5.3.1. Traditional budgets are fixed and inflexible. Once prepared, traditional budgets cannot be changed. Many factors like a new competitor in the market, change in policy, change in market conditions, etc. may take place, yet the budget stays the same.
5.3.2. Traditional budgets are prepared by the top management by making few changes in last year’s budget. Therefore, it promotes bureaucracy. So other people in the organization feel ignored or unimportant. This acts against the motivation of the employees of the organization.
5.4. Basic steps
5.4.1. Start by looking at your previous budget’s revenue. How did your business’s actual revenue compare to the budgeted revenue? Make changes based on your actual earnings as well as changes in your business pricing strategy.
5.4.2. Determine your business’s expenses. Look at both your fixed and variable expenses. Fixed expenses (e.g., rent) are the same each month while variable expenses (e.g., supplies) change each month. Examine your previous year’s expenses and take into account any changes in your expenses.
5.4.3. Lastly, project your business’s profits. You can find your projected profit by subtracting your estimated expenses from your estimated revenue.
5.5. Exemplo
6. GOAL
6.1. A numerical plan of a business's activities made in advance that helps a business identify and solve problems before they arise
6.1.1. A quantitative expression of a plan of action that shows how someone or something will acquire and use resources over a specific period of time
6.2. Allow ongoing comparison between plan and execution
7. Bibliografia
7.1. Zero based budgeting
7.1.1. Zero-Based Budgeting (ZBB)
7.1.2. What is Budgeting and Why is it Important? | My Money Coach
7.1.3. Zero-Based Budgeting
7.1.4. The purpose of budgeting
7.1.5. Kelly Liu: Zero-based Budgeting in Tech
7.1.6. https://www.orba.com/zero-based-budgeting-for-profitability/
7.2. Traditional budgeting
7.2.1. Traditional Budgeting | eFinanceManagement.com
7.2.2. Traditional Budgeting Advantages & Disadvantages for Small Business
8. Types of Planning
8.1. Long-Run Planning
8.1.1. Strategic planning
8.1.2. Capital budgeting
8.1.3. Company core driven
8.1.3.1. Mission
8.1.3.2. Vision
8.1.3.3. Strategies
8.1.3.4. Actions
8.2. Short-Run Planning
8.2.1. Production and process prioritizing
8.2.1.1. How to best use available resources to maximize profit
8.2.2. Operations budgeting (Profit planning)
8.2.2.1. Stabilish and communicate daily, weekly and monthly goals
9. Budget 101
9.1. Planning guidelines
9.1.1. Key economic forecast and impact
9.1.2. New products
9.1.3. Resource allocations