Traditional budgeting is proving inadequate in today’s volatile business climate, pushing CFOs to adopt transformative methods that emphasize agility, efficiency, and adaptability. Approaches such as zero-based budgeting eliminate waste by justifying expenses from scratch, while driver-based budgeting ties resources to key performance drivers, enabling rapid reforecasting. Priority-based budgeting ranks initiatives by value, and beyond budgeting introduces principles to enhance agility and transparency. Though initially more demanding, these methods improve decision-making and resilience. Success requires change management, performance model adjustments, and purpose-built tools that integrate with ERP systems to streamline collaboration and reforecasting.

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