Free Template

Zero-Based Budget Template

Start every budget cycle from zero. This template requires each expense to be justified from a blank slate rather than rolled forward from last year. Includes priority ranking, business case fields, and approval tracking to ensure every pound of spend earns its place.

What's included

Everything in this template

  • Zero-base justification fields for every line item
  • Priority ranking (Critical, Important, Nice-to-have)
  • Business case and ROI columns
  • Approval status tracking
  • Comparison to prior year for context

Template preview

See the structure

fx=SUMIF(Priority, "Critical", Approved)
Expense
Requested
Priority
Approved
CRM Licence
£18k
Critical
£18k
Trade Shows
£25k
Important
£15k
Office Redesign
£40k
Nice-to-have
£0
Training
£8k
Critical
£8k
Total
£91k
£41k

Step by step

How to use this template

1

List every planned expense

Start with a blank sheet. Add every expense you plan to incur, regardless of whether it existed last year.

2

Write a business case for each item

For each line, document why the spend is necessary, what the expected return is, and what happens if it is cut.

3

Assign priority levels

Rank each item as Critical, Important, or Nice-to-have. This helps finance prioritise when the total exceeds the available envelope.

4

Review and approve

Finance reviews each item, adjusts amounts where needed, and marks approved items. The approved column gives the final budget.

Watch out

Common mistakes to avoid

Treating zero-based budgeting as a one-time exercise rather than an annual discipline

Spending too long justifying small, recurring items that are clearly necessary

Not involving department heads in the prioritisation process

Failing to track whether approved spend delivered the promised ROI

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FAQ

Frequently asked questions