Private firms and government agencies generally require candidates for budget analyst positions to have at least a bachelor's degree, but many prefer or 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, master's degrees are preferred. State and local governments have varying requirements, but a bachelor's degree in one of many areas;accounting, finance, business, public administration, economics, statistics, political science, or sociology;may qualify one for employment. Many States, especially larger, more urban States, require a master's degree. Sometimes a degree in a field closely related to that of the employing industry or organization, such as engineering, may be preferred. Some firms prefer candidates with a degree in business because business courses emphasize quantitative and analytical skills. 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.
Because developing a budget involves manipulating numbers and requires strong analytical skills, courses in statistics or accounting are helpful, regardless of the prospective budget analyst's major field of study. Financial analysis is automated in almost every organization and, therefore, familiarity with word-processing programs and with financial software packages used in budget analysis often is required. Software packages commonly used by budget analysts include electronic spreadsheet, database, and graphics programs. Employers usually prefer candidates who already possess these computer skills.
Those seeking a career as a budget analyst also must be able to work under strict time constraints. Strong oral and written communication skills are essential for analysts because they must prepare, present, and defend budget proposals to decision makers.
In addition, budget analysts, along with all other financial officers, must abide by strict ethical standards. Integrity, objectivity, and confidentiality are all important to budget analysis, and budget analysts must avoid any personal conflicts of interest.
Entry-level budget analysts may receive some formal training when they begin their jobs, but most employers feel that the best training is obtained by working through one complete budget cycle. During the cycle, which typically is 1 year, analysts become familiar with the various steps involved in the budgeting process. The Federal Government, on the other hand, offers extensive on-the-job and classroom training for entry-level trainees. In addition to on-the-job training, budget analysts are encouraged to participate in various professional development classes throughout their careers.
Some government budget analysts employed at the Federal, State, or local level may earn the Certified Government Financial Manager (CGFM) designation granted by the Association of Government Accountants. Other government financial officers also may earn this designation. To do so, candidates must have a minimum of a bachelor's degree, 24 hours of study in financial management, and 2 years of government work experience in financial management. They also must pass a series of three exams that cover topics on the organization and structure of government; governmental accounting, financial reporting, and budgeting; and financial management and control. To maintain the CGFM designation, individuals must complete 80 hours of continuing professional education every 2 years.
Budget analysts start their careers with limited responsibilities. In the Federal Government, for example, beginning budget analysts compare projected costs with prior expenditures, consolidate and enter data prepared by others, and assist higher grade analysts by doing research. As analysts progress in their careers, they begin to develop and formulate budget estimates and justification statements, perform detailed analyses of budget requests, write statements supporting funding requests, advise program managers and others on the status and availability of funds for various budget activities, and present and defend budget proposals to senior managers.
Beginning analysts usually work under close supervision. Capable entry-level analysts can be promoted to intermediate-level positions within 1 to 2 years, and then to senior positions within a few more years. Progressing to higher levels means added budgetary responsibility, and can lead to a supervisory role. Because of the importance and high visibility of their jobs, senior budget analysts are prime candidates for promotion to management positions in various parts of their organizations, or with other organizations with which they have worked.
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Programs
| [ save ] | 1. | Accounting | |
| Matching Occupations: 7 | |||
| A program that prepares individuals to practice the profession of accounting and to perform related business functions. Includes instruction in accounting principles and theory, financial accounting, managerial accounting, cost accounting, budget control, tax accounting, legal aspects of accounting, auditing, reporting procedures, statement analysis, planning and consulting, business information systems, accounting research methods, professional standards and ethics, and applications to specific for-profit, public, and non-profit organizations. | |||
| [ save ] | 2. | Finance, General | |
| Matching Occupations: 9 | |||
| A program that generally prepares individuals to plan, manage, and analyze the financial and monetary aspects and performance of business enterprises, banking institutions, or other organizations. Includes instruction in principles of accounting; financial instruments; capital planning; funds acquisition; asset and debt management; budgeting; financial analysis; and investments and portfolio management. | |||
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