Fiducia TogetherZero-based budgeting
Building the budget from nothing each year rather than from last year's.
Please note: This page explains what a term means. It is general information, not legal, financial, tax or investment advice, and it does not know anything about your business. Before you sign, file or commit to anything, check it with an accountant, a solicitor, or the official guidance we link to.
What it means
Zero-based budgeting requires every cost to be justified from zero rather than being carried forward with an adjustment.
Why it matters
Incremental budgeting perpetuates spending nobody has examined in years. Zero-based finds it.
What it looks like in practice
It is time-consuming, so most businesses apply it selectively — to overheads, to one department a year, or every third year.
What to watch out for
Applying it to everything annually, which is exhausting and produces resistance. Rotate it.
Where to get proper advice
Your accountant.
Where to read more
Last reviewed 2026-08-28 by Fiducia Together · Next review due 2027-08-28
Please note: This page explains what a term means. It is general information, not legal, financial, tax or investment advice, and it does not know anything about your business. Before you sign, file or commit to anything, check it with an accountant, a solicitor, or the official guidance we link to.