A budget analyst is one that is essential in large firms and government departments. In this type of job, your main focus will be on the operating budget – the development and maintenance of the budget. Not only will you have to develop a budget, but you will have to analyze the present budget and past budgets to make comparisons in costs and spending to allocate the resources fairly throughout the business and to estimate future needs in funding. All organizations, whether they are for profit or non-profit, look for ways to cut costs and reduce spending, thus freely up more working capital or monies needed to pay down debts. This will be your main job in this position.
Prior to the beginning of each fiscal year, the managers of the various departments will submit their financial plans to you, the budget analyst, for review. You have a set amount of money that has to be disbursed among all departments, so this activity is one that will consume a lot of your time. The use of spreadsheets is essential here as you compare the various expenses and look for areas where there may be duplication. You will carefully scrutinize these financial plans to make sure the numbers and calculations are accurate and that any proposals fall within the guidelines and operating policies of the organization.
As you analyze the budget proposals, you will have to approve or refuse some of the funding requests. You will need to prepare written arguments for the refusals and submit budget summaries to the senior management. As the budget analyst, you can make recommendations along with your report for activities that the organization should become involved in and for areas where costs can be reduced to save money.
Once the budget is set, the budget analyst reviews this budget on a regular basis to ensure that all departments are working within the parameters set for them in the amount of spending they have. At times, there may be unexpected expenses, which will mean a deviation from the budget and the actual performance. You will have to investigate these deviations and prepare a written report to accompany the budget documentation. You will be part of a team involved in the financial long-term planning for the organization as well based on your research and experience in dealing with the financial situation.
To become a budget analyst, you need to have at least a Bachelor’s degree in an area of business, accounting or finance. More and more employers are looking for people to fill the vacant positions that have Master’s degrees. In order to work in this capacity in a government office, you should also have courses in political science, public administration or economics. When you first get hired in this job, you will start in an entry-level position with limited responsibilities and you will work under the supervision and guidance of an experienced analyst. As you gain experience, you will be assigned more challenging tasks. If you work in a government office, you can also become certified as a Government Financial Manager and engage in continuing education in order to renew this certificate every two years.
