Film Accounting Glossary
Zero-based budgeting
What is zero-based budgeting?
Also called zero based budget.
Zero-based budgeting means building every line from the actual script breakdown, schedule, and quoted rates rather than starting from a previous picture's budget and adjusting.
It takes longer and produces a budget whose every number can be defended, which is exactly what a financier's review tests. Its opposite, rolling forward a pattern budget without revisiting the assumptions, is how a production inherits someone else's mistakes.
Example
Instead of taking last picture's $380,000 transportation budget and adding 5%, the line is rebuilt: 14 drivers at quoted rates for the scheduled weeks, 22 vehicles at current rate cards, actual fuel and mileage. It takes longer and every number can be defended.
Figures are illustrative, chosen to show the mechanics rather than to quote market rates.
Where you'll see it
Prep, working from the script breakdown, the schedule, and current vendor quotes. Its opposite is inheriting someone else's mistakes.
Common mistake
Starting from the last picture's budget and adjusting. The assumptions underneath belonged to a different schedule, a different crew, and different rates.
Related questions
- What is zero-based budgeting in film?
- Building every line from the current script breakdown, schedule, and vendor quotes rather than adjusting a previous production's budget.
- Why is zero-based budgeting worth the extra time?
- Because every number can be defended in a financier's review, and inherited assumptions from another picture cannot.