Every organization, be it public or private needs to plan out its finances. This is where a budget analyst and budget analyst salary comes into the picture.
Who Is A Budget Analyst?
A budget analyst is someone having a bachelor’s degree in accounting or finance or business economics who teams up with company executives and managers to help develop a budget. The budget revenue and expenditure components are analyzed by the budget analysts to understand the nature of the cash flow which comes into the organization and the spending done by the company.
Budget analyst positions in organizations show a growing trend and could turn out to be a hot new career choice for many individuals. Critical thinking and a love for numbers could help one succeed in this field which offers multiple avenues for growth.
Many organizations prefer to fill the budget analyst jobs or vacant positions they have with experienced folk having relevant business as well as finance-related experience. They are averse to trying out freshers as this profession can be quite demanding. However, youngsters who wish to join the industry and have an inclination to work as budget analysts should seek out internships and supplement such internships with professional courses.
There are certifications that can be a catalyst for the career growth that an individual can take up. Some of the certifications that aid one’s entry into the field of budget analysis are:
- Certified Public Accountant
- Certified Budget Specialist
- Certified Budget Analyst
The above-mentioned certifications and programs help channel the focus of individuals towards diverse skills that complete the profile of a budget analyst in the industry. The individual ends up acquiring crucial add-on skills such as knowledge of budgeting software, and data analytical skills among others.
Since every industry has a requirement for proper management of its finances, every small and large organization will be in need of a budget analyst. One can find suitable budget analyst positions in large organizations or by becoming a part of an agency that does financial consulting or as an independent contractor that freelances as a budget analyst. The budget analyst’s salary also changes as per the organization one chooses to work for.
Budget Analyst Salary & Budget Analyst Job Description
The primary responsibility of a budget analyst is to identify the appropriate resources to be allocated after analyzing the company’s budget. A typical budget analyst job description calls for a reliable individual with strong mathematical and critical thinking skills. Such individuals must also exhibit strong capabilities with respect to analyzing budget proposals and requests for funding, the ability to conduct a cost & benefit analysis, and submit suitable recommendations to the top management for their approval or feedback.
Specific budget analyst job description calls for skills such:
- Excellent analytical skills coupled with numerical abilities,
- Good written and oral communication skills,
- An ability to look at every minor detail.
Budget analyst jobs are in high demand in America. Going by a general survey on any popular job networking sites one would see the high demand for budget analyst jobs.
Typically, budget analyst positions are hands-on positions in the organization and require the individual to collaborate with other members of the finance department as well as with project managers and senior executives. It can often end up being quite stressful owing to the tough deadlines that need to be met with respect to monitoring the financial data and making a cost-benefit analysis, and submission of proposals among other things.
Budget analyst salary also takes into account the nature of the job and the various roles a budget analyst needs to take up. The nature of a budget analyst’s job involves the following:
- Preparing budget proposals and budget reports
- Determining whether the budget proposals submitted are in accordance with specific financial regulations
- Working with the project managers to first prepare a budget, putting up a case for approving or rejecting a certain funding request
- Analyzing specific budgets and then suggesting cuts in spending or even allocations
- Auditing the budgeting practices within the company
- Monitoring spending by the firm to ensure that the budget requirements are being met
From the above spectrum of budget analyst roles, one can understand that the budget analyst salary offered by companies attracts the best as they are accountable for how the organizations spend their financial resources.
As explained earlier in the roles of a budget analyst, the budget analyst audits the current financial budgeting practices in the firm. The budget analysts are also the ones who track the organization’s spending. This is particularly important as an organization is overspending or showing excessing expenses in a particular year as compared to the previous year to monitor what triggers an IRS audit.
If you are wondering what are the matters that trigger an IRS audit can include several things. One of the core reasons that triggers an IRS audit of a particular business is the business showcasing disproportionate deductions as compared to one’s income. This can include even bad debt deductions which are found to be recurring. It is the budget analyst who after studying current and future budgets, makes the organizations accountable for their spending, highlights the wasteful expenses, and advises on the most effective and efficient financial resource allocation. The role of a budget analyst and the budget analyst’s salary is thus justified.
Finally coming to the budget analyst salary, one can score an average budget analyst salary of around $ 65,000 per annum across different states in America. Exploring the other components of the budget analyst salary a particular component is a bonus which accounts for a one-time annual payment of up to 5% of the salary.
In conclusion, one can identify the crucial role that budget analysts play in every organization owing to how they help the organizations manage their finances. For this, the budget analyst has to cultivate a good understanding of the organizational spending and gather enough data and details so as to first study corporate expenses and later on create budget reports to be presented to the management. And as the budget analyst helps leadership in the companies curtail expenses and defend the management’s decisions, they are often at the receiving end of a fat budget analyst salary that is often the best in business.
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