Budget Analyst Job Description – Salary, Education and Career Guide for becoming a Budget Analyst

Federal, state, or local governments employ many budget analysts, but budget analyst careers are not limited to the public sector. Approximately half of all budget analysts work for non-profit agencies or private companies. Large corporations in particular have a need for budget analysts because their budgets are often large and complex.

Budget analyst employment is expected to increase in coming years, but what does a budget analyst do? Budget analysts are responsible for analyzing the annual budget proposal of a government institution or business to determine if it is realistic, complete and cost-effective.

 

Their analysis often includes recommendations on how the budget proposal could be improved to minimize waste and maximize efficiency while still meeting the goals of the institution or company. They then present the results of their analysis to the person or group of people responsible for approving the final budget.

 

After the budget is approved and the budget year progresses, budget analysts often monitor spending and provide suggestions for readjustments to the budget as the need arises. Some budget analysts are involved in projecting future budget resources and needs.

 

Budget analysts tend to work fairly independently and with little supervision. The workload for a budget analyst varies throughout the budget cycle, and the peak time is typically during the development period for the following year’s budget. Most budget analysts work exclusively in an office environment, but some may have the need to periodically travel to monitor progress on a project funded by the budget.

According to the Bureau of Labor Statistics, the median annual salary for a budget analyst in 2007 was $66,310, while the top 10 percent earned over $97,000 annually. Entry-level budget analysts employed by the federal government earned between $28,862 and $35,752 in 2007. At large corporations, salaries for entry level budget analysts started between $36,500 and $43,750 in 2007.

Obtaining budget analyst employment typically requires a minimum of a bachelor’s degree. The degree can be in any subject, but the preferred majors are those that teach analytical skills, such as finance, business, economics, accounting, public administration and statistics. Many employers prefer candidates who have a master’s degree in one of these subjects.

 

Because the budget analysis process involves working with large sets of data, budget analysts must be proficient with computers and financial software programs. This training is part of the college curriculum in many finance and business-oriented majors.

 

Some budget analysts employed in government choose to become certified government financial managers. The Association of Government Accountants administers this certification exam. To take the exam, applicants must have a bachelor’s degree and a minimum of two years’ experience working in the financial management field at a government agency.

When hiring an entry-level budget analyst, some employers prefer candidates who have experience working in a financial management environment. Any experience that requires analytical skills or computer skills is also an asset. However, many entry level budget analysts have limited work experience and are hired based on the skills obtained during their education.

Entry level budget analysts generally begin with limited responsibilities and work closely with more senior budget analysts, at least through the first complete budget cycle. Once they have experience with all stages of the budget process, they can be promoted to intermediate level positions and given more responsibility and less supervision. With further experience, they can advance to senior budget analyst positions or make the transition into management.

 

Budget analysts hired by the federal government start out as entry-level budget analyst trainees and undergo an extensive training program that includes class work as well as on-the-job instruction. The training typically lasts one year, after which trainees are often eligible to receive a promotion.

Several groups and associations are available to professional budget analysts, including the following: