Budget Analyst: Job Description & Career Outlook

Businesses and organizations always need trained professionals to effectively distribute their limited financial resources. In large organizations where the structure is quite complex, the task can not be completed with the help of budget analysts. Therefore, there is a growing demand for these analysts, who develop, analyze and execute the budget. Becoming a budget analysts is one of the most rewarding careers that accounting offers. To make the most of your career in this occupation, you need to be familiar with all the essential career information including the job description, nature of work, educational qualification, training, career advancement options, earning benefits etc.

 

Job Description
Budget analysts work for a variety of businesses, organizations and institutions. The major job duty of these professionals is to provide expert advice and assistance in the preparation of annual budget. Analysts who work in the private sector analyze the efficiency and find ways to maximize the profit of businesses. On the other hand, those who work for non-profit organizations hold the work responsibility of effectively distributing funds.

 

Budget analysts work in close contact with senior managers and department heads in an organization. At the start of each budget cycle, analysts analyze the proposed financial plans submitted by managers and department heads. These proposed plans include essentials like funding increment, capital expenditures, estimate costs, expenses etc. All these are then reviewed by budget analysts. Analysts check the submitted proposals for precision and accuracy. In addition, budget analysts see to it that the proposed plans are in conformity to the organizational policies and objectives.

 

After completing the review of the proposed financial plans, budget analysts then work to consolidate the different departmental budget into capital financial summaries. After the budget summaries are consolidated, they are submitted to the senior management group or the elected officials for approval. After conducting a scrutiny of the proposed budget plan, the organization head or the chief operating officer makes the final decision of approving the plan.

 

The job of a budget analyst is not over yet. Even after the entire budget plan has been finalized, approved and put into work, analysts periodically monitor the budget throughout the entire year. They ensure that funds are being used exactly in the way they were allocated. In case, there are some discrepancies in the approved budget and actual payout, budget analysts prepare reports citing the reasons that may have caused the expense to arise. Analysts may also give recommendations for making adjustments in the proposed budget to avoid any kind of deficit.

 

Working Conditions
Budget analysts perform their work indoors in comfortable office environment. Professionals usually need to work additional hours during the initial budget planning and the final review of the proposed financial plans. So, they usually work more than the standard 40 hours a week. In case of special budget requests, there may be an interruption in the work schedule of analysts. Depending on individual organizational requirements, budget analysts may be required to travel.

 

Educational Qualification & Training
To become a budget analyst, candidates should at least possess a bachelor's degree in areas like accounting, finance, public administration, business, economics or any other relevant field. A master degree in a relevant field would be required for advanced career opportunities. In addition, candidates also need to be well versed with various software package related to the budget analysis. Excellent verbal and written communication skills, analytical skills, an ability to work under time constraints are the essential job skills required by budget analysts. Many employers also provide formal training for entry level job positions. Additional certifications like the Certified Government Financial Manager (CGFM) will be required to work with government agencies.

 

Annual Salary
The salary of budget analysts would vary depending on their work experience, geographic location and the type and size of the employer. The annual salary in this occupation ranges between $45,170 and $70,530. Those who are employed with the federal government earn an average salary of around $61,640 annually. With increasing work experience and skills, budget analysts can earn as high as $87,380 annually.