Job Profile: Budget Analyst

Have you have ever tried to stick with a budget and cut back on your spending when you were running low on cash? Then you already know a thing or two about budget analysis. Budget analysts are involved in making these crucial financial decisions daily to create, analyze, and oversee the spending of organizations. Budget analysts compare the costs of company resources with their benefits to form important recommendations for saving loads of capital. They work for:

  • businesses
  • non-profits
  • government offices

Budget analysts play a prominent role in using their expertise in finance to:

  • increase their organization’s efficiency
  • maximize profitability
  • reduce wasteful spending

Salary

According to the Bureau of Labor Statistics, the 58,740 budget analysts employed across America earn an average annual salary of $72,560. This is equivalent to $34.89 per hour. Budget analysts working for the federal executive branch earn higher than average at $78,080 annually. But the highest paid in the profession work for securities brokerages at $89,990 yearly.

Beginning Salary

When first starting out in budget analysis, analysts with limited experience typically will earn around $45,780 each year. However, there is the potential for budget analysts to eventually bring home a sizable six-figure salary of over $104,350 as they accumulate higher levels of work experience in the field.

Key Responsibilities

Budget analysts are hired by organizations in the public, private, and non-profit sector to help prepare budget reports that monitor institutional spending. In organizing their company’s finances, budget analysts are usually responsible for:

  • collaborating with project managers to develop proper budget constraints
  • reviewing budget proposals for compliance with laws
  • creating a consolidated organizational budget between different departments
  • providing advice for funding requests
  • helping executives analyze proposed project plans
  • estimating future financial needs
  • informing managers on the availability of funds

Budget analysts must keep track of an organization’s spending throughout the year and recommend spending cuts when needed to avoid going over budget.

Necessary Skills

As their name suggests, budget analysts must have strong analytical skills with a significant background in mathematics to:

  • process a variety of financial data
  • evaluate costs
  • use analysis software for solving complex budgetary problems

Creating an efficient budget requires careful analysis. Organizational skills are a must to play close attention to each budget item. Budget analysts should strengthen their public speaking skills to effectively communicate their findings and make recommendations in company meetings. Having good written communication skills is also important. Budget analysts must present highly technical financial data in a manner that is understandable to their intended audience on paper.

Degree and Education Requirements

Employers typically require that any candidates seeking to fulfill budget analyst positions have at least a bachelor’s degree from an accredited institution. While the four-year undergraduate degree can be in any field, it is usually suggested that budget analysts pursue a major in:

  • accounting
  • statistics
  • finance
  • business
  • public administration
  • economics

In rare cases, having budget-related work experience in financial services can be substituted for formal post-secondary education. Analysts who are hoping to advance their career into intermediate or senior-level budget analyst positions may need to have an MBA or a specialized master’s degree related to finance.

Pros and Cons of this Position

Becoming a budget analyst is an ideal financial position for individuals who:

  • are good with numbers
  • are clear communicators
  • have a creative mind for solving problems

Budget analysts benefit from:

  • high average earnings
  • stable employment during tough economic times
  • a multitude of job options available in different work settings

On the other hand, budget analysts spend the majority of their workday in an office setting to meet tight deadlines. This can lead to a higher than average level of stress. Many budget analysts juggle many projects and work long hours overtime beyond the standard 40-hour workweek, especially during final reviews for budgets. Some budget analysts may also be required to travel often to receive budget details firsthand or to confirm funding allocations in larger organizations.

Getting Started

While earning a bachelor’s degree, it is suggested you get started on your career path by filling your schedule with courses in:

  • mathematics
  • statistics
  • accounting
  • communications

It can even be helpful to take computer science courses to begin mastering the computer and becoming familiar with analysis software.  This will be vital later on. Then, start applying for entry-level budget analyst positions with limited responsibilities to learn the lay of the land and get a foot in the door. For budget analysts interested in working for the federal government, you should pursue professional credentials as a Certified Government Financial Manager (CGFM) through the Association of Government Accountants (AGA). Do this after obtaining at least two years of work experience. Staying updated on field developments through continuing education will also help receive advancement into more senior positions with increased responsibilities in budget analysis.

Future Outlook

Budget analysis is increasingly complex with more statistical techniques. The expanding job responsibilities are expected to create a need for more budget analysts. However, job growth will likely be tempered by limited government spending and will depend on the efficient use of public funds. According to the Bureau of Labor Statistics, employment of budget analysts will grow slower than the average for all occupations at the rate of 6% before 2022, thus creating just 3,800 new jobs in the United States. The profession has a fairly steady turnover rate as budget analysts often leave to pursue opportunities in higher level positions. It is projected that the best prospects will be found in entry-level jobs in:

  • educational institutions
  • government agencies
  • manufacturing companies
  • corporations
  • technical services
  • non-profit organizations

Overall, elected officials and top-level executives depend on the work of budget analysts to make sound decisions that will lead to good overall financial health for their organization. The job naturally comes with long work hours and strict deadlines. Budget analysts take on an important role in:

  • examining budgets
  • reviewing financial requests
  • assessing program tradeoffs
  • exploring alternative funding to leave their mark on improving their organization’s efficiency.

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