Budget Analysts

Budget analysts like to study and recommend how an organization can more efficiently distribute limited financial resources. No organization has unlimited financial resources and need some assistance with understanding their money flow. In most large and complex organizations, this task would be nearly impossible without budget analysts. These workers play a key role in the development, analysis, and coordination of budgets, which are used to determine current resources and estimate future financial needs. Without effective budget analysis and feedback about budgetary problems, many private and public organizations could become bankrupt and no longer exist. These workers are the financial “watchdogs,” who guard the budget and make sure it is in the best possible shape so the organization can operate and be successful!

They are needed in many organizations and can be found in private industry, nonprofit organizations, and the public sector. In private firms, a budget analyst examines, analyzes, and seeks new ways to improve efficiency and increase profits. Although analysts working in nonprofit and governmental organizations usually are not concerned with profits, they still try to find the most efficient distribution of funds and other resources among various departments and programs.

Budget analysts have many responsibilities in these organizations, but their main task is providing advice and technical assistance in the preparation of annual budgets. They also examine past and current budgets and research economic and financial developments that affect the organization’s spending. This process helps an organization stay on course with its priorities and available financial resources.

Employment

Budget analysts held 62,000 jobs throughout private industry and government in 2002. Federal, state, and local governments are major employers, accounting for 46 percent of budget analyst jobs. About 1 in 5 worked for the federal government. Many other budget analysts worked in manufacturing, financial services, or management services. Other major employers include schools and hospitals.

Job Outlook

Employment of budget analysts is expected to grow about as fast as the average for all occupations through 2012. In coming years, all types of organizations will continue to rely heavily on budget analysts to examine, analyze, and develop budgets. Because of the importance of financial analysis, employment of these workers has remained relatively unaffected by downsizing in the nation’s workplaces. In addition, because financial and budget reports must be completed during both periods of economic growth and slowdowns, budget analysts usually are less subject to layoffs than are many other workers during economic downturns. They enjoy a certain sense of job security!

Education and Earnings

Private firms and government agencies generally require candidates for budget analyst positions to have at least a bachelor’s degree, but many require a master’s degree. Within the federal government, a bachelor’s degree in any field is sufficient for an entry-level budget analyst position, but, again, those with master’s degrees are preferred.

Many government employers prefer candidates with strong analytic and policy analysis backgrounds that may be obtained through such majors as political science, economics, public administration, or public finance. Occasionally, budget-related or finance-related work experience can be substituted for formal education.

If you are interested in this occupation or are wondering about related occupations, use the links below to continue your exploration. Always remember, the more effort you put into exploring possible careers, the easier it will be for you to discover the best career choices for you!

Bureau of Labor Statistics, Occupational Outlook Handbook: http://www.bls.gov/oco/.

O*NET OnLine, Occupational Information Network: http://online.onetcenter.org/.