When it comes to keeping a company’s finances on track and in the best shape possible, today’s budget analyst is the expert that’s right there staying abreast of it all. What exactly does this professional do on a daily basis and what is their importance? Let’s get straight to answering these questions.
Budget Analysis: The Basics
Every company out there has a budget and financial arrangement that entails just about every facet of business operation. One may imagine correctly that this budget can be quite complex, playing into a massive amount of ever-changing numbers. Income, profits, supplies purchased, employee benefits and payroll – these are just a few of the types of numbers that the analyst must factor regularly.
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In the end, the analyst analyzes the company’s financial figures and provides expert advice and direction on the most advantageous approaches to a healthy budget and future. Most analysts simply interpret the numbers and provide expert direction. Some however are given authority to make actual changes as they see fit to certain, important numbers.
A Day in the Life
Let’s look to a few hypothetical budget analysts and their daily activities. We can then start to understand this position a little further.
Tom is the budget analyst for a small toy manufacturing company. Usually he just monitors typical budget figures involving payroll, production expenses, and company income. Recently however, he has become involved with monitoring the company budget amidst the creation of a whole new line of toys to be produced. As production initially ramps up, there will be an immediate loss in income. If Tom works the numbers well though, this should only be a momentary hiccup that is ultimately turned around into great profits.
Janet is our second, hypothetical budget expert. She works for large, legal consulting firm. The firm has recently undergone a complete restructuring of employees and business model. Janet is now playing a vital and pioneering part in the restructuring of company finances as a result. She will likely consider company stock-holdings, employee benefits revamping, and a different office space for reduced rental costs. In the end, Janet’s concern is the soundness of the company’s budget once all changes have finished up.
For those interested further in this type of career, a glance to the resources of the BLS, or Bureau of Labor Statistics can paint an even clearer, vocational picture. First of all, this is a profitable position. As of 2015 figures, the BLS cites those in this analyst position to see a median pay rate of right around $71,590 per year. Growth in this occupation is also listed at 3%. This is slower than average growth but is steady.
The education needed to obtain this position is a bachelor’s degree at the minimum. To work as a government analyst though, an additional certification is needed: the Certified Government Financial Manager Credential. This is provided by the Association of Government Accountants.
We all know the importance of managing our finances and budgets. This is even more the case when it comes to a business and its financial complexity. Today’s budget analyst is the governor of these all-important figures and the keeper of sound financial practice therein.