To better understand zero based budgeting, here's an example: Each department of an organization which uses zero based budgeting would have to justify its funding every year. That is, funding would have a base at zero. A division of that organization would have to show why its funding effectively aids the company towards its financial goals. This is best tackled by preparing some form of a budget as well as a forecast. Depending on what kind of business, this need not be very formal but, nonetheless, it is important that any forecast or budget is updated and reviewed continually. To this end, a company must be able to prepare weekly, monthly, quarterly and yearly figures in keeping an eye on future cash flow requirements as well as making sure that expectations will be met. Once you figure out where all your money is going, you can make sure that you are not wasting. Spending smart is the key towards better finances. It's a way to set financial priorities. But before you get to setting your objectives, you need to take stock of where you're spending your money today. More than ever, really give financial budgeting a try for it may open your eyes. Using Budgeting Software for HighTech Financial Freedom Budgeting is the answer to your problems on financial matters. Living payday to payday, failure to eliminate debts and other financial problems are quite common. Fortunately, you can try a better way to manage your money with budgeting software. It takes time to verify information on expenditures and income so that nothing is missed. Also the accuracy of information is one of the most important factors in making a personal finance budget that really works. In your personal finance budgeting, always remember the consequences of your spending. In other words, activity based budgeting is budgeting, planning and controlling by activities rather than cost elements of an organization. For users of this budgeting program, they claim that it engages everyone in thinking about how they can better create value for organization. It develops a flexible budget based on activity work load that is not as rigid as ledger of the line item budgeting that pre-identifies costs eventhough that cost may not be of use at all.