One of the central tasks of the CFO during a crisis is to ensure financial liquidity. A liquidity squeeze can quickly threaten the existence of the company. Especially in times of crisis, a lot of extra measures are required in addition to operational cost and liquidity management.
In contrast to traditional, incremental budgeting, Zero-Base Budgeting does not simply update the costs of the previous year. Instead, the budget is replanned from scratch, similar to when you start a business.
