The job of a budget analyst involves efficient distribution of the limited financial resources of an organization. The larger the organization, the more complex is this task without a budget analyst. A budget analyst analyzes and executes the budgets and allocates it to the current resources. He also makes estimation for future financial requirements. Whether is a private industry, a nonprofit organization, or a public sector, all share the requirements of a budget analyst. He examines the budget and seeks new ways to enhance profits and improve efficiency.
The nonprofit and government organizations that are usually not profit oriented, the nature of job of a budget analyst is to find most efficient way of distribution of funds and other resources among various programs and departments. A budget analyst, in addition to the managing a budget of an organization, is quite frequently involved in evaluation of program performance, policy analysis, and drafting of budget related legislation. At the start of each budget cycle, all departmental heads and managers submit proposed plans of operation and finance the budget analyst for review. A budget analyst then examines these budget estimates for accuracy, completeness, and conformity with organization's objectives, procedures, and regulations.
After completing the initial review process, the individual departmental budgets are consolidated by a budget analyst into operating and capital budget summaries for taking decision by head of the organization, government, or competent officials. A budget analyst makes extensive use of financial software like spreadsheet, word processing, and database.
A budget analyst is required to possess a minimum of a bachelor's degree. Some organizations prefer a budget analyst with master's degree. At the entry level, the budget analysts are usually assigned limited responsibilities, but gradually they are elevated to the intermediate level position in one to two years. After gaining adequate additional experience they are promoted to senior positions. In the Federal Government, a bachelor's degree in any field is adequate for an entry level position of a budget analyst. A candidate with a master's degree has good future prospects.
At entry level, a budget analyst in the Federal Government is imparted with extensive on-the-job and classroom training. In other organizations, mostly budget analysts learn through working on one complete budget cycle which typically lasts one year.
Besides academic requirement, a budget analyst must be a person abiding by ethical standards strictly. He should be a man of impeccable integrity, objectivity, and confidentiality while dealing with financial information. Mathematical skill is added advantage for a budget analyst. A budget analyst should be competent in using software packages like databases, spreadsheets, graphics programs, financial analysis, and data mining. He should be strong in oral and written communication. A budget analyst must be capable of working under strict time limitations.
Depending upon experience, education and employer, the salary of budget analyst varies to a great extent. In May 2006, the salary of a budget analyst had a median of $61,430. The Middle 50 percent of these analysts had earnings between $49,070 and $77,000. The lowest 10 percent received less than $40,070 while the highest 10 percent had earned $93,080.
In 2007, an entry level trainee budget analyst in Federal Government was earning $28,862 or $35,752. A master degree candidate began with $43,731. In the Federal Government, the average annual salary of budget analysts in 2007 was $71,267.
In 2006, budget analysts occupied 62,000 jobs across the country in private industry and government. The major employers were the Federal, state, and local governments that accounted for 44 percent of the jobs of budget analysts. There were many other budget analysts working in schools, technical services, professional services, scientific services, management services and financial services.
The US Bureau of Labor Statistics expects a growth rate of 7 percent in the employment of budget analysts during the decade from 2006 to 2016. This growth is as fast as the average for all occupations. There are expected to be good job prospects especially for a person having a master's degree. Continuous demand for sound financial analysis in private and public sectors will drive the employment growth.
As per the Bureau of Labor Statistics, job openings are expected as a result of growth in employment, replacement needs due to retirement, and leaving the occupations for various reasons. Persons having a master's degree have good future prospects. A person having familiarity with software like graphics, financial analysis, data mining, database, and spreadsheet will also see enhanced prospects.
