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, those with 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 or public administration, economics, political
science, statistics, or a social science such as sociology—may qualify
one for entry into the occupation. 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 and the
financial software packages used in budget analysis often is required.
Software packages commonly used by budget analysts include electronic
spreadsheet, database, and graphics software. Employers usually prefer
job candidates who already possess these computer skills.
In addition to analytical and computer skills, those seeking a career as a
budget analyst 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.
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 the various classes offered 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.
Candidates must have a minimum of a bachelor’s degree, 24 hours of
study in financial management, and 2 years of experience in government,
and must pass a series of three exams. The exams cover topics on the
organization and structure of government; governmental accounting,
financial reporting and budgeting; and financial management and
control.
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 indepth analyses of budget requests, write
statements supporting funding requests, advise program managers and
others on the status and availability of funds for different 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 into intermediate-level positions
within 1 to 2 years, and then into senior positions within a few more
years. Progressing to a higher level 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 the organization.
Email This Page!