We’re fluent in startup finance. Now you can be too.

Learn more about common financial (and startup) terms here. To learn more about Pilot, fill out the form below.

Oops! Something went wrong while submitting the form.
Zero-based budgeting

What is zero-based budgeting?

Zero-based budgeting (ZBB) is a method of budgeting where all expenses must be justified for each new period. Instead of simply adjusting previous budgets, ZBB starts from "zero base" and every function within an organization is analyzed for its needs and costs.

ZBB allows organizations to rigorously review all their expenses and can lead to cost savings by identifying inefficiencies. The process involves justifying why every expense is necessary, which can often lead to better strategic alignment of resources. However, ZBB can be time-consuming and requires buy-in from the entire organization. It's most effective in larger companies or in startups looking to reset their cost structures or undergo a strategic shift.

Need help with other finance or startup questions?

Pilot provides bookkeeping, CFO, and tax services for literally thousands of startups and growing businesses. We've successfully processed over 10 million transactions for our customers and have unparalleled expertise when it comes to helping businesses succeed.

We're the largest startup-focused accounting firm in the United States, and we'd love to help you. To talk to an expert on our team and find out what Pilot can do for you, please click "Talk to an Expert" below, or email us at info@pilot.com.

See what Pilot can do for you

Get the peace of mind that comes from partnering with our experienced finance team.

Oops! Something went wrong while submitting the form.