In this article, we will explore the concepts of Zero-Based Budgeting and Zero-Based FP&A. The word “Budget” is not associated with flexibility and dynamics. Zero-Based Budgeting has started to be evolved to “Zero-Based Everything”:
Larysa Melnychuk
Larysa Melnychuk is a passionate Financial Planning & Analysis (FP&A) professional and influencer who has held senior FP&A roles at leading organisations before setting up the International FP&A Board in 2013. The Board is a global and well-recognised professional think-tank that aims to bring together the knowledge and experience of senior FP&A professionals and aid the development of best practice in the profession.
In the last three years, she successfully expanded the Board into 32 chapters in 18 countries across Europe, the Middle East, Asia, Australia, and North America.
Larysa is also the founder and CEO at the FP&A Trends Group, the leading online resource for FP&A professionals. She chairs the Global AI FP&A Committee and runs a number of high-profile initiatives in the area of modern financial analytics.
Larysa holds a Master of Science degree in physics of materials and is a qualified chartered management accountant (CIMA), chartered global management accountant (CGMA) and is a holder of an FP&A certification. She is also a member of the exam content writing team for the Association of Finance Professionals (AFP) FP&A certification.
Larysa is also a passionate conference speaker and writes articles on various FP&A-related subjects.
Author's Articles
Most recently, I have been observing significant changes in business models in many organisations around the globe.
Many FP&A Board members say the future can no longer be predicted based on only historical data since we are living in an environment of “Unknown Unknowns”.
The concept of Zero Based Budgeting (ZBB) is by no means new. It has been around for almost 50 years and has been used by many commercial and non-commercial organisations whose overriding objectives are to shed the unnecessary expenses.
In a rapidly changing business environment, the traditional, out-dated budgeting mentality is being challenged more and more. While the process of moving away from a traditional budgeting mentality is painful and slow, it is happening around the globe. The question is, are we ready to abandon the traditional budget completely?
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