The effective distribution of limited funds is one of the most difficult challenges faced by most corporations, agencies, or organizations. If it weren’t for the budget analyst, dividing limited resources would be practically impossible in most cases. Budget analysts create, evaluate, analyze, and implement budgets. She must make the best use of the financial resources she has and forecast future budgetary requirements.
A budget analyst can work in a variety of settings, including the private sector, government, and non-profit organizations. If she works in the private sector, her primary responsibility will be to analyze the company’s budget and come up with new ways to make the company more efficient, thereby increasing profits. Profits are often less important in the public sector and non-profit organizations. In these situations, a budget analyst must try to determine the most efficient way to distribute funds and other resources throughout the agency or among the various segments of the organization.
As funding has become more scarce, bold decisions have been made to downsize, restructure, and eliminate waste. As a result, budget analysts have gained prominence in the private, public, and non-profit sectors. She works to evaluate the performance of various programs or departments in addition to managing and implementing the budget. She may encourage corporate or agency leaders to end, trim, or streamline a program or department if it appears to be wasteful. Her job duties could include drafting legislation related to a balanced budget and conducting training sessions on how to approach a new budget.
Leaders and managers give budget analyst proposals to review each time a new budget cycle approaches. All aspects of the program or department in question are detailed in the proposals. They’ll go over each program in detail, including how much money it’ll cost to run it and whether or not they can suggest ways to fund it and increase financial resources.
A budget analyst’s responsibilities include estimating a budget and analyzing a proposal for accuracy and completeness. She must also be aware of the current procedures, the laws that govern the organization or department, and the organization’s or department’s objectives. She must also conduct a cost-benefit analysis to determine whether the program’s or department’s costs are justified by the benefits it provides to the community or the company. Thinking outside the box is a valuable skill because she will occasionally need to find new ways to fund a program or department.
For the budget analyst, budget summaries and financial software are very popular. The summaries will state clearly whether or not a program or department should be funded. Top corporate executives or elected officials are usually the ones who read them. Although the budget analyst’s advice is not required to be followed, it is the best way to ensure a corporation, agency, or organization’s long-term viability.