Budget Analyst

Budget analysts help public and private institutions organize their finances. They prepare budget reports and monitor institutional spending.

Budget analysts typically do the following:

Work with program and project managers to develop the organization's budget
Review managers' budget proposals for completeness, accuracy, and compliance with laws and other regulations
Combine all the program and department budgets together into a consolidated organizational budget and review all funding requests for merit
Explain their recommendations for funding requests to others in the organization, legislators, and the public
Help the chief operations officer, agency head, or other top managers analyze proposed plans and find alternatives if the projected results are unsatisfactory
Monitor organizational spending to ensure that it is within budget
Inform program managers of the status and availability of funds
Estimate future financial needs

Budget analysts advise various institutions—including governments, universities, and businesses—on how to organize their finances. They prepare annual and special reports and evaluate budget proposals. They analyze data to determine the costs and benefits of various programs and recommend funding levels based on their findings.

Although elected officials (in government) or top executives (in a private company) usually make the final decision on an organization's budget, they rely on the work of budget analysts to prepare the information for that decision.

Sometimes, budget analysts use cost-benefit analyses to review financial requests, assess program tradeoffs, and explore alternative funding methods. Budget analysts also may examine past budgets and research economic and financial developments that affect the organization's income and expenditures. Budget analysts may recommend program spending cuts or redistributing extra funds.

Throughout the year, budget analysts oversee spending to ensure compliance with the budget and determine whether changes to funding levels are needed for certain programs. Analysts also evaluate programs to determine whether they are producing the desired results.

In addition to providing technical analysis, budget analysts must effectively communicate their recommendations to officials within the organization. For example, if there is a difference between the approved budget and actual spending, budget analysts may write a report explaining the variations and recommend changes to reconcile the differences.

Budget analysts working in government attend committee hearings to explain their recommendations to legislators. Occasionally, budget analysts may evaluate how well a program is doing, provide policy analysis, and draft budget-related legislation.

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Budget analysts typically have an interest in the Thinker, Persuader and Organiser interest areas, according to the Holland Code framework. The Thinker interest area indicates a focus on researching, investigating, and increasing the understanding of natural laws. The Persuader interest area indicates a focus on influencing, motivating, and selling to other people. The Organiser interest area indicates a focus on working with information and processes to keep things arranged in orderly systems.

If you are not sure whether you have a Thinker or Persuader or Organiser interest which might fit with a career as a budget analyst, you can take a career test to measure your interests.

Budget analysts should also possess the following specific qualities:

Analytical skills. Budget analysts must be able to process a variety of information, evaluate costs and benefits, and solve complex problems.

Communication skills. Budget analysts need strong communication skills because they often have to explain and defend their analyses and recommendations in meetings and legislative committee hearings.

Detail oriented. Creating an efficient budget requires careful analysis of each budget item.

Math skills. Most budget analysts need math skills and should be able to use certain software, including spreadsheets, database functions, and financial analysis programs.

Writing skills. Budget analysts must present technical information in writing that is understandable for the intended audience.

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