A budget analyst is one of the many professionals in the world of finance who provides clients and organizations with an all-inclusive assessment of their financial situation. They may work directly for the federal government, education departments, or private companies. They may even serve those clients as part of private firms or even as independent consultants, as well.
Budget analysts not only provide in-depth details about an organization’s finances, but also offer recommendations on where to cut costs or increase revenue to achieve goals. Let’s take a closer look at the daily responsibilities of a budget analyst, how much they make a year, and how you too can pursue a career in this field.
Budget Analyst Job Description and Responsibilities
The typical responsibilities held by an internal budget analyst include:
- Collaborating with project managers and other department heads to establish and unify the company’s budget, particularly as it pertains to different business sectors;
- Combining the budgets of different programs or departments into a single, comprehensive budget for the review of executives or other key stakeholders;
- Reviewing and verifying budget proposals to ensure that all included information is correct and complete, and that proposals are also in step with current compliance standards or other applicable laws;
- Explaining funding request recommendations for C-suite officers within the company, or to legislators and/or the public, as needed and depending upon the work setting;
- Supporting the efforts of the chief operating officer, chief financial officer, and other managers, including assisting with proposal analysis;
- Seeking out proposal alternatives if current forecast results are unacceptable or can be otherwise improved;
- Tracking the institution’s spending according to established budgets
- Monitoring available funds and keeping executives and stakeholders apprised of these amounts;
- Analyzing and projecting the organization’s future financial needs.
Overall, it’s up to the budget analyst to ensure that spending doesn’t exceed established limits and that the company can meet certain cost-saving or similar goals, regardless of the industry they work in.
Budget Analyst vs. Financial Analyst
Because they perform many of the same functions and hold several of the same responsibilities, financial analysts and budget analysts are often mistaken for one another or are considered one and the same. They play slightly different roles, however, in terms of their focus.
While a budget analyst helps managers and business executives work with their existing budgets and assess expense histories, a financial analyst is more future-focused. For example, a financial analyst may provide private organizations with an informed opinion on how to structure their finances based on market trends or economic conditions. They may also provide insight into a business’ competitors through data analysis and contextualize what earnings reports for those competitors mean for the company.
How To Become a Budget Analyst
There is a high level of complexity to budget analysis, involving a variety of tasks and responsibilities that include data analysis, mathematical modeling, and problem-solving. Many of these capabilities are obtained while enrolled in college courses. Academic programs that teach typical budget analyst functions as part of the curriculum include accounting, business, social science as well as finance. Read below to learn more about the different degrees one could get to excel in a career as a budget analyst.
Budget Analyst Education Requirements
To obtain a position as a budget analyst, individuals must meet a few key requirements for educational experience and certifications. Most employers require a college degree in a relevant field such as business, finance or accounting. However, some hiring managers may consider candidates who don’t have a related degree, but have strong experience in finance- or accounting-related work. Be sure to research all prospective employers before applying to ensure you meet their standards.
Best Degrees for Budget Analysts
There are a couple of degrees to choose from when detailing your plan for becoming a budget analyst — a bachelor’s and a master’s. Earning a bachelor’s in finance is the best first step to take when starting this journey, for the courses aligned with this degree educate you on the basics of how to work as a successful budget analyst.
You may also note that some employers — be they private firms or government agencies — may be more selective in their hiring process and require applicants to have a master’s degree. Earning your Master’s in Business Administration opens up the number of opportunities you have for working on a management level, regardless of your desired field of expertise.
Individuals considering this career path can start their journey by building the necessary skills and expertise through a bachelor’s or master’s degree program. Students can develop knowledge and experience in areas including financial research and management, portfolio management, business communications, and international financial management. Speak with an enrollment advisor today to see if earning a degree in finance is right for you.
Budget Analyst Certifications
While certifications aren’t necessary, obtaining them or enrolling in continuing education courses — like earning a master’s degree — is a great way to expand on your existing skillset needed to be a budget analyst. Some employers may look to see if you possess certain credentials to qualify for employment at their facility.
Available through the Association of Government Accountants, becoming a Certified Government Financial Manager (CGFM) means possessing a credential that indicates you are capable of performing certain specialized accounting tasks at the varying levels of government — local, state, and federal. While not required for a budget analyst, accountants pursue this credential to demonstrate their proficiency in government accounting and to open the door to more work opportunities. A CGFM can do the same for a budget analyst.
As with other certifications — in fields beyond financial management, such as in medicine or law — CGFM recipients must go to certain lengths to maintain certification. This includes paying the annual CGFM renewal fee before the certification expires and participating in 80 hours of continuing professional education every two years. The continuing education must pertain to government financial management, and four of those 80 hours should be related to ethics.
CGFM certification is not mandatory for a budget analyst, but certain bachelor’s degree and master’s degree programs can prepare you for some of the financial management topics that this program covers more in-depth.
While obtaining the CGFM certification may seem like a time-consuming and challenging process, the advantages include increased job opportunities in the government field, as well as potentially higher compensation.
Additionally, continuing your education and adding additional skills to your repertoire can increase your odds of earning employment elsewhere in the finance industry, like a financial manager.
Skills Needed To Become a Budget Analyst
As their title suggests, budget analysts spend a great deal of their time combing and dissecting data and documents — including profit loss statements, balance sheets, invoices, and earnings statements. This is all done to help business leaders make plans regarding their budgetary needs and goals.
Budget analysts need to be highly proficient with data analysis so they can make informed recommendations to their employers. To no surprise, this isn’t the only skill needed to excel as a budget analyst.
Additional ideal skills to possess include, but certainly aren’t limited to:
- The ability to communicate and explain things simply;
- Being attentive to detail;
- Excellent understanding of mathematics and number literacy;
- Analyzing an array of different financial elements;
- Clear communication and comprehension.
Individuals who can think analytically, have an interest in finances, and are skilled in organization, planning, and analysis are well-suited for this type of career.
Budget Analyst Salary
A budget analyst stands to earn a competitive wage, whether they’re new to the profession or a seasoned professional. According to the U.S. Bureau of Labor Statistics (BLS), as of May 2022, budget analysts made an estimated range of $53,000 and $128170 annually. That’s assuming the person has a bachelor’s degree; they may be able to earn more than that if they have a master’s degree.
What Is the Job Outlook for a Budget Analyst?
The hiring climate for virtually any profession is a constantly moving target. Much depends on how the economy is functioning and how many people are applying at any given moment. That said, the BLS estimates a 3% increase in the number of budget analysts in the U.S. by 2030.
If you’re in high school or changing professions, the budget analyst career path may be just what you’re looking for in a line of work that can allow you to best utilize your skills and improve upon them on an ongoing basis. Your journey to that career destination starts with a Bachelor of Science in Finance from the University of Alabama at Birmingham Collat School of Business.
Sources:
AGA, “Maintaining CGFM Certification”
U.S. Bureau of Labor Statistics, “Occupational Employment and Wages, May 2022: Budget Analysts”
U.S. Bureau of Labor Statistics, “Budget Analysts: Job Outlook”