In today’s dynamic financial world, it’s challenging for businesses to keep track of their cash flow through revenue, expenditure, and investments. That’s why it’s essential for companies to conduct budgeting analysis for getting the financial answers they’ll need to maximize profitability and minimize loss in the competitive global marketplace. Budget analysts are typically responsible for overseeing the entire year-long cycle of budgeting to ensure that resources are being raised and spent appropriately to reach company goals. From private corporations and manufacturing firms to universities and government agencies, budget analysts work in a variety of settings to monitor institutional spending. Top executives and officials rely on budget analysts to prepare these financial budgeting reports for making smart business moves.

Salary

According to the Bureau of Labor Statistics, the 58,740 budget analysts currently working across the United States earn an average yearly salary of $72,560, which is equivalent to a mean hourly wage of $34.89. Budget analysts employed by state government agencies make significantly less than average at $63,110, but those working for securities and commodity brokerages earn the highest mean salary at $89,990 each year.

Beginning Salary

When just starting in the financial field, budget analysts can expect to earn a yearly salary in the bottom tenth percentile at around $45,780. However, it’s important to note that senior budget analysts with years of experience and supervisory roles can break the six-figure salary mark to make over $104,350 annually.

Key Responsibilities

Budget analysts are given the hefty task of organizing their organization’s finances to prepare essential reports and evaluate budget proposals. Most budget analysts will work with program or project managers to determine the costs and benefits of their plans. Budget analysts often utilize statistical computer software to carefully review managers’ financial requests, evaluate program trade-offs, and brainstorm alternative methods of funding. In some cases, budget analysts will also examine past budget reports and research current economic trends that could have an impact on the organization’s current income. Budget analysts look out for any differences between approved budget plans and actual spending to recommend needed changes too.

Necessary Skills

As the job title suggests, budget analysts must possess strong analytical skills for processing a wide range of financial data for evaluating costs and benefits of business operations. Budget analysts should be strong communicators with good interpersonal skills to clearly explain their analyses and make recommendations in executive meetings. Writing skills are a must because budget analysts must present technical information in an easy-to-understand format. Since the majority of the job involves working with numbers, having strong math skills is important to ensure all budget analysis isn’t one penny off. Budget analysts should also be very organized and detail-oriented so that budgeting reports are completed with accuracy.

Degree and Education Requirements

For successfully landing a budget analyst position, you’ll need to earn at least a four-year undergraduate degree from an accredited business school. Budget analysts typically choose to earn a bachelor’s degree in accounting, finance, business administration, economics, statistics, or mathematics. Aspiring budget analysts looking to work for government agencies may also benefit from majoring in public administration or political science. Due to the growing complexity of the business world, many employers will prefer hiring budget analysts who have returned to graduate school. Earning a Master of Accountancy (MAcc), Master of Science in Finance (MSF), or Master of Business Administration (MBA) will help unlock senior budget analyst jobs.

Pros and Cons of the Position

Budget analysis can be a rewarding career option for individuals interested in finance and mathematics to find jobs in a variety of settings. Budget analysts bring home an above-average annual salary often packaged with good benefits. Most budget analysts will spend the majority of their day working in a comfortable office setting, though some may get to travel occasionally for reviewing budget details firsthand. Budget analysis also offers rather stable employment during tough economic times when jobs are scarce. On the flip side, budget analysts must be prepared to work rather long hours beyond the 40-hour workweek. Working overtime to meet tight budget review deadlines can be a stressful situation. As new analysis techniques are developed, most budget analysts will also be required to complete continuing education.

Getting Started

While completing your degree, it’s recommended that you get started immediately on building your resume with budget-related experiences. You should pursue every available opportunity for earning internship, volunteer, or part-time work experience with examining budget estimates for companies. Entry-level budget analysts will likely have limited responsibilities, but you’ll learn the practical skills that are needed for advancement. As you gain more experience, you can receive promotions into intermediate and senior budget analyst positions. If you’re working in a government agency, you may want to consider boosting your credentials by earning the Certified Government Financial Manager (CGFM) credential from the AGA. You may also wish to learn about the latest development in the field by becoming a member of the American Association for Budget and Program Analysis (AABPA).

Future Outlook

As budget analysis increases in complexity with new statistical approaches becoming available, there’s expected to be a need for more budget analysts to take over these expanding job responsibilities effectively. Since the nation will continue making budget cutbacks to recover from the recent recession, budget analysts will be in demand for ensuring funds are being used in an efficient manner. That being said, limited government spending will slow job opportunities and create some heated competition about accounting graduates. In fact, the Bureau of Labor Statistics reports that the employment of budget analysts will grow slower than average at just six percent before 2022, thus creating 3,800 new jobs. Many budget analysts leave this profession to pursue more advanced finance-related roles, so the best prospects will likely be available in entry-level budget analysis.

Overall, budget analysts use their expert financial knowledge to carefully examine their employing organization’s budget proposals for new or continuing programs. Budget analysts play a prominent role in increasing overall efficiency, maximizing profits, minimizing losses, and eliminating wasteful spending. If you’re destined to become a budget analyst, you’ll have the rewarding opportunity to help senior management teams form decisions that will maintain the financial health of their organization.