- Budget analysts help organizations allocate their financial resources.
- They develop, analyze, and execute budgets, as well as estimate future financial needs for private businesses, non-profit organizations, and government agencies.
- In private sector firms, a budget analyst's main responsibility is to examine the budget and seek new ways to improve efficiency and increase profits.
- In non-profit and governmental organizations, which usually are not concerned with profits, analysts try to find the most efficient way to distribute funds and other resources among various departments and programs.
- In addition to managing an organization's budget, analysts are often involved in program performance evaluation, policy analysis, and the drafting of budget-related legislation.
- At times, they also conduct training sessions for company or government personnel regarding new budget procedures.
- At the beginning of each budget cycle, managers and department heads submit operational and financial proposals to budget analysts for review.
- These plans outline the organization's programs, estimate the financial needs of these programs, and propose funding initiatives to meet those needs.
- Analysts then examine these budget estimates and proposals for completeness, accuracy, and conformance with established procedures, regulations, and organizational objectives.
- Sometimes they employ cost-benefit analyses to review financial requests, assess program tradeoffs, and explore alternative funding methods.
- They also examine past budgets and research economic and financial developments that affect the organization's income and expenditures.
- After the initial review process, budget analysts consolidate individual departmental budgets into operating and capital budget summaries.
- These summaries contain statements that argue for or against funding requests.
- Budget summaries are then submitted to senior management, or as is often the case in government organizations, to appointed or elected officials.
- Budget analysts then help the chief operating officer, agency head, or other top managers analyze the proposed plan and devise possible alternatives if the projected results are unsatisfactory.
- The final decision to approve the budget usually is made by the organization head in a private firm, or by elected officials, such as State legislators, in government.
- Throughout the year, analysts periodically monitor the budget by reviewing reports and accounting records to determine if allocated funds have been spent as specified.
- If deviations appear between the approved budget and actual spending, budget analysts may write a report explaining the variations and recommending revised procedures.
- To avoid or alleviate deficits, budget analysts may recommend program cuts or a reallocation of excess funds.
- They also inform program managers and others within the organization of the status and availability of funds in different accounts.
- Data and statistical analysis software has greatly increased the amount of data and information that budget analysts can compile, review, and produce.
- Analysts use spreadsheet, database, and financial analysis software to improve their understanding of different budgeting options and to provide accurate, up-to-date information to agency leaders. In addition, many organizations are beginning to incorporate Enterprise Resource Planning (ERP) programs into their budget-making process.
- ERP programs can consolidate all of an organization’s operating information into a single computer system, which helps analysts estimate the effects that a budget alteration will have on each part of an organization.
- Candidates with a master's degree are expected to have the best opportunities.
- Employment growth will be driven by the continuing demand for sound financial analysis in both the public and the private sectors.
- As businesses and other organizations become more complex and specialized, budget planning and financial control will demand greater attention.
- In recent years, computer applications used in budget analysis have become increasingly sophisticated, allowing more data to be analyzed and processed in a shorter amount of time.
- As a result, agency leaders have begun to demand more data, analyses, and other types of information relevant to the budgeting process.
- This has increased the workload of budget analysts, and created the need for more workers. As this process continues, demand for budget analysts will grow.
- Familiarity with spreadsheet, database, data-mining, financial-analysis, and Enterprise Resource Planning software packages also should enhance a jobseeker's prospects.
Other workers involved in financial analysis include Accountants and Auditors; Cost estimators; Financial analyst; Financial managers; Insurance underwriters; Loan officers; Management analysts.
- BA in Business Administration
- BA in Accounting
- BA in Statistics
- BA in Economics
- MBA
This career information is drawn from data provided by the U.S. Department of Labor.