Budget Analyst
A Budget Analyst is a professional responsible for the development and management of budgets within businesses or government agencies. They analyze financial data, review past expenditures, and assess current economic conditions to create balanced budgets that maximize efficiency and effectiveness. Budget analysts play a crucial role in financial planning, ensuring that resources are allocated appropriately to support various programs and departments while striving to minimize costs and enhance revenue.
Typically working in office environments, budget analysts may be part of a team, collaborating with various stakeholders to gather insights and present their findings. Their responsibilities include monitoring fiscal health, analyzing departmental budgets, and preparing annual spending plans. To succeed in this role, a bachelor's degree in business, finance, or accounting is commonly required, and advanced education may provide a competitive advantage.
The job can be demanding, particularly during budget preparation periods, often requiring strong analytical skills and proficiency in financial software. Overall, budget analysts contribute significantly to an organization's financial stability and strategic planning, making their role vital across diverse sectors.
Budget Analyst
Snapshot
Career Cluster(s): Business, Management & Administration
Interests: Economics, accounting, strategic planning, finance
Earnings (Yearly Average): $84,940 per year $40.84 per hour
Employment & Outlook: 3% (As fast as average)
Entry-Level Education Bachelor's degree
Related Work Experience None
On-the-job-Training None
Overview
Sphere of Work.A budget analyst is a professional who helps in the development and implementation of a business or government budget. Budget analysts review revenues and expenses, study the cost-effectiveness of an organization’s activities, research alternative courses of action, and make recommendations for a balanced annual budget. Budget analysts play an important role in an organization’s financial planning for the fiscal year. For government agencies and nonprofit organizations, a budget analyst can help the group efficiently and effectively distribute funds for programs and departments. For businesses, a budget analyst can help maximize profits and reduce expenditures.
Work Environment. The work of a budget analyst is performed primarily in an office setting. In a government agency, the analyst may work as part of a team where each member focuses on selected budget areas. A budget analyst frequently meets with their superiors, department heads, managers, and other members of the organization with insight into how the organization’s money is being spent. Budget analysts normally work a forty-hour workweek, although during periods when the budget is being finalized, their hours may be temporarily extended. At these peak times, the work environment may be somewhat stressful when budget deadlines loom.
Occupation Interest. Budget analysts use their extensive research and analysis experience to help an organization map out its future in making recommendations concerning the best financial course of action for the short- and long-term. Budget analysts are able to perceive and grasp the complete and often complex inner workings of a government agency, nonprofit organization, or business in such a way that few other employees can.
A Day in the Life—Duties and Responsibilities. A budget analyst is responsible for monitoring the past, present, and short- and long-term fiscal health of an organization or government agency. He or she will research the organization’s past financial activities and health, reviewing financial reports and other related documents from previous years. Additionally, the budget analyst analyzes monthly budgets for each department (or applicable business activity) to ensure that the current year’s budget requirements are being followed and that no extraordinary costs or revenue drops are occurring. The budget analyst researches current trends in the marketplace, the economy, and vendors to see if there are any trends that may positively or negatively impact the organization for which he or she works. This research includes reviewing documents and meeting with key officials and personnel for more information.
Using this past and present information, the budget analyst will put together the framework for the organization’s annual spending plan for the coming fiscal year. This budget will feature revenues and profits generated from each activity in the previous year, the costs involved for those activities, the amounts the business will invest in employee pay and benefits, and any other information of importance to the organization’s financial health. In addition to the annual budget, these analysts may be called upon to create smaller budgets for individual activities and projects and short-term programs. In each of these activities, the analyst will be focused on ensuring that investments are cost-effective—in other words, that the program will generate as much revenue as possible while costs and expenses are held to a minimum.
The budget analyst may also be called upon by executives, legislators, and other officials to present their findings and opinions about how best to proceed with financial plans. This component of a budget analyst’s job may include testifying at legislative and agency hearings, speaking at board of directors' meetings, or meeting directly with executives and high-level officials.
Work Environment
Immediate Physical Environment. Budget analysts generally work in office environments, either in their own individual offices or sharing open office space with other personnel. These settings will be busy, especially during periods closest to budget deadlines. Many meetings between these analysts and key personnel will take place in conference rooms and similar settings within the main office.
Human Environment. Although budget analysts often work independently on their individual areas of focus, they typically work in a team dynamic, particularly when putting together large government or corporate budgets. They frequently interact with one another as well as with superiors and department heads during the course of developing an annual or quarterly budget.
Technological Environment. Budget analysts typically need to have knowledge of computers and be proficient in the use of business and accounting software. Such software includes spreadsheet and database programs and word processing systems.
Education, Training, and Advancement
High School/Secondary. High school students interested in becoming budget analysts should take courses in business and accounting, mathematics, and computer science. They may also benefit from developing better writing and communication skills.
Postsecondary. Budget analysts generally choose to complete bachelor’s degrees in business, finance, accounting, and management. Because this field is highly competitive, individuals who obtain a master’s degree tend to have an edge over other candidates.
Related Occupations
− Actuary
− Auditor
Bibliography
“Budget Analysts.” Occupational Outlook Handbook, Bureau of Labor Statistics, US Dept of Labor, 17 Apr. 2024, www.bls.gov/ooh/business-and-financial/budget-analysts.htm. Accessed 27 Aug. 2024.
“Occupational Employment and Wages, May 2023: 13-2031 Budget Analysts.” Occupational Employment Statistics, Bureau of Labor Statistics, US Dept of Labor, 3 Apr. 2024, www.bls.gov/oes/current/oes132031.htm. Accessed 27 Aug. 2024.