What Is a Budget Analyst? How to Become One, Salary, Skills.

Budget analysts help maintain the financial health of a business by organizing its budget and analyzing its finances, so it is on stable financial ground for the foreseeable future. Here’s what to know about a budget analyst’s needed skills, salary and how to become one.

What Is a Budget Analyst?

A budget analyst keeps track of a company’s expenses. Based on their findings, budget analysts make suggestions on how companies can apply their resources to minimize spending and maximize the value with projects, events and other investment areas.

What Do Budget Analysts Do?

Budget analysts review financial reports to track company expenses and spending decisions. They may then recommend a business redistribute resources, cut back on certain programs or perform other actions to improve its financial health in the long run.

Budget Analyst Responsibilities

• Develop budgets that allow businesses to function with the least amount of expenses possible.  
• Make sure current company costs fall within budget boundaries. 
• Locate unnecessary expenses and opportunities to reduce company spending. 
• Ensure a business remains on solid financial footing in the future.

Day-to-Day Responsibilities of a Budget Analyst

• Review financial reports to assess company expenses.  
• Analyze financial data to make projections about future company expenses and resources needed to support these expenses.  
• Organize financial data and reports to justify budget plans to budget managers, finance managers and other finance leaders.
• Evaluate funding requests and determine value and capacity for each project.
• Share recommendations for reallocating resources with finance managers, accountants and other relevant finance personnel.

Budget Analysts Within a Company

Budget analysts work within the finance department as entry- to mid-level professionals. They work closely with accountants, finance managers, budget managers and other team members to craft budget plans and determine the best ways to allocate resources. Although budget analysts make suggestions, the decision power lies with budget managers, finance managers and other higher-level personnel.

Importance of Budget Analysts

Budget analysts help ensure a company keeps its expenses manageable while investing in activities that offer the most value. Because of these efforts, budget analysts play a major role in preserving the financial health and profitability of companies months and years into the future.

What Skills Are Needed to Be a Budget Analyst?

Qualifications to Be a Budget Analyst

• Proven success organizing budgets to reduce unnecessary costs. 
• Experience compiling and analyzing financial data.  
• Expertise in evaluating the pros and cons of different projects. 
• Ability to anticipate financial costs and resources needed for support. 
• Familiar with financial analysis software and tools.

Budget Analyst Prerequisites 

• Bachelor’s degree in business, finance, accounting, economics or a related field. 
• Two to five years of relevant professional experience. 
• Certifications like the Certified Government Financial Management credential.

Budget Analyst Hard Skills

• Understanding of a business and its different projects. 
• Strong research and data analysis abilities.  
• Skilled in financial forecasting and other financial analyses.
• In-depth business and financial background. 
• Knowledge of financial analysis technologies and software.

Budget Analyst Soft Skills

• Ability to share recommendations while exercising tact. 
• Effective communication and presentation skills. 
• Excellent judgment and decision-making skills. 
• Holistic, long-term thinking skills. 
• Analytical mindset.

Tools and Programs Budget Analysts Use

• Financial analysis software like Causal, Jirav and Workday.  
• Spreadsheet tools like Microsoft Excel and Google Sheets. 
• Budgeting platforms like QuickBooks, Prophix and Xero.

How to Become a Budget Analyst

Budget Analyst Education and Experience

Aspiring budget analysts often complete a bachelor’s degree in business, accounting, finance, economics, mathematics or a related field. In addition to education, graduates may spend two to five years working in entry-level roles. Examples include financial analyst, junior accountant and personal financial advisor. While it’s not required, certifications can open more career doors for budget analysts. Some professionals go on to complete certifications like the Certified Government Financial Management credential. 

Budget Analyst Certificates and Courses

• Certified Government Financial Management credential. 
• Certified Budget Specialist certification.  
• Related certifications like the Certified Public Accountant credential.

Budget Analyst Career Path

After earning their bachelor’s degree in a relevant field, budget analysts usually start working as financial advisors, financial analysts or other entry-level finance professionals. With the right amount of experience and certifications, budget analysts can work toward becoming budget managers. However, this managerial role may require up to five years of experience working as a budget analyst.

Budget Analyst Salary and Job Outlook

Professionals will have more opportunities to grow their careers as budget analysts as the field slowly expands. According to the Bureau of Labor Statistics, the number of budget analysts will increase by 3 percent between 2021 and 2031.  

The full compensation package for a budget analyst depends on a variety of factors, including but not limited to the candidate’s experience and geographic location. See below for detailed information on the average budget analyst salary.