OVERVIEW
What is a Budget Analyst?
A budget analyst helps organizations structure and allocate their financial resources. They serve as an advocate for the financial success of an organization by evaluating proposals, recommending changes, redistributing funds, and preparing reports. They work closely with project managers to stay on budget, and if there is a discrepancy in the budget, they develop solutions and recommendations to reconcile that discrepancy.
There are many job titles a budget analyst can have within an organization, from financial analyst to finance manager to fixed income trader. And budget analysts often collaborate with other business professionals, like accountants and financial planners, to guide them in making more efficient financial decisions.
RESPONSIBILITIES
What Does a Budget Analyst Do?
The day-to-day duties of a budget analyst can range from analyzing data to communicating with executives. A typical workday may include the following:
- Analyzing financial reports
- Developing organizational budgets
- Reviewing funding requests
- Researching fiscal concerns
- Forecasting budgets for the upcoming fiscal year
- Monitoring spending each quarter
- Problem-solving possible financial needs
- Working closely with project managers
- Preparing and maintaining financial records
- Communicating budget parameters internally and externally
How to Become a Budget Analyst
Love numbers and planning? Do you thrive in an environment where your leadership skills are highly valued? If so, then a career as a budget analyst might be a great fit for you.
A budget analyst is the person in a company, nonprofit, or other organization who analyzes spending, budgets, and funding requests. Executives rely on the knowledge and hard work of budget analysts to synthesize data in order for them to make informed financial choices. A budget analyst’s primary responsibility is to use excellent communication and problem-solving skills to guide budget allocations and monetary decisions.
According to the U.S. Bureau of Labor Statistics (BLS), the current median salary for a budget analyst is $39.55 per hour and $82,260 per year. Budget analysts play an important role in both public and private organizations to advise on and help promote the financial health of an organization.
With a competitive degree and strong work experience, you can feel prepared to become a well-qualified budget analyst.
EDUCATION & BEST DEGREES
How Do I Become a Budget Analyst?
The first step to becoming a budget analyst is to get a bachelor’s degree in business management, accounting or even finance. Within business management, courses on business ethics, business communication, project management, and marketing assist when navigating the inner politics of an organization, communicating expectations, learning how to oversee a project from start to finish, and understanding both business-to-business (B2B) and business-to-consumer (B2C) environments. Additionally, an accounting degree helps provide knowledge in taxation, accounting, quantitative analysis, and business simulation. These courses aid in understanding the complexities of tax law, mastering multilevel accounting principles, analyzing trends and data, and growing skills from theoretical to applicable. Overall, a degree in either business management or accounting is an excellent foundation for a successful career in budget analytics.
The next step is to gain professional experience. According to the BLS, more than 50% of employers are looking for at least two years of experience, and 32% want three to five years of experience. Gaining skills through an internship or entry-level position in financial analysis, budget drafting, accounting practices, data presentation, and financial problem-solving will only further develop a strong pathway for you as a skilled budget analyst.
Finally, earning a Master of Business Administration (MBA) or Master of Accounting (MAcc) can help you stand out from the competition and increase your earning potential. On average, graduates with an MBA or MAcc report a $16,000 to $18,000 increase in their yearly salary.
Best Degrees for an Investment Manager
Business
Business Management – B.S. Business Administration
Hone your business acumen and garner added respect:...
Hone your business acumen and garner added respect:
- Time: 61% of graduates finish within 19 months
- Tuition: $3,755 per 6-month term
- Courses: 40 total courses in this program
Skills for your résumé this program will teach you include:
- Business communication
- Product development
- Decision making models
- Project management strategies
- Budgeting for business
This online degree program is an excellent choice for kick-starting your organizational management career.
Business
Accounting – B.S. Business Administration
Have a knack for numbers or fine-tuning finances?...
Have a knack for numbers or fine-tuning finances?
- Time: 62% of graduates finish within 24 months
- Tuition: $3,755 per 6-month term
- Courses: 41 courses in this program
Skills for your résumé you will learn in this program include:
- Accounting
- Finance
- Financial Statements
- Communication
- Detail Oriented
- Research
Take your first step toward CPA certification and learn how to use GAAP, ledgers, and journals.
Business
Finance – B.S.
This online finance program is career-focused so you will gain relevant...
This online finance program is career-focused so you will gain relevant industry skills.
- Time: 62% of graduates finish similar programs within 24 months
- Tuition: $3,575 per 6-month term
- Courses: 41 courses in this program
Some careers and jobs this business degree will prepare you for:
- Management
- Accounting
- Finance
- Spreadsheets
- Financial Analysis
- Problem Solving
The competency-based model at WGU allows you to move as quickly as you can master the material, and do your coursework on your schedule. Flexibility is key with the B.S. in finance at WGU.
How Much Do Budget Analysts Make?
$82,260
The income for a budget analyst will vary depending on their industry, location, and level of education. Most budget analysts can expect an annual salary ranging from $82,260 to $90,440 per year, with the bottom 10% earning less than $49,000 and the top 10% earning more than $124,000 per year.
What Is the Projected Job Growth?
3%
From 2022 to 2032, the field of budget analytics is expected to grow by 3%. The essential skills of budget preparation, analysis, and planning that analysts bring to an organization ensure this career will remain in high demand. And even with the continued dependency on AI technology, budget analysts remain an important asset in translating financial data for organizations to make real-world decisions.
SKILLS
What Skills Does a Budget Analyst Need?
- Innovation and creativity: Budget analysts use innovation and creativity when presented with a fiscal challenge. A budget analyst is a necessary resource when an organization has a surprise expense and limited funds.
- Insightful perspective: To keep a budget on track, budget analysts use their insight to examine spending and advise necessary changes. They often look at past budgets and research competitors to create a well-developed perspective.
- Detail-oriented: A keen eye for detail is most important for a budget analyst to review funding requests for compliance and correctness. For instance, many organizations rely on an in-house budget analyst to keep their records prepared for auditing.
- Problem-solving: Budget analysts use cost-benefit analysis to foresee financial dilemmas. For example, if a company wants to invest in a new product design, then a budget analyst is an essential part of determining the financial viability of that product launch.
- Effective communication: Strong writing and verbal communication skills are essential when budget analysts communicate their recommendations. Understanding the numbers on a spreadsheet is important, but it is equally important that budget analysts effectively communicate those financial expectations to other team members.
- Technical knowledge of financial records: Budget analysts use spreadsheets, databases, and analysis software to maintain their fiscal knowledge, and they are expected to constantly develop their technical skills.
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