Posted on May 19th, 2025 in Blog, Business

What Is a Budget Analyst?

Individuals who are looking for a career where they can use their analytical skills to help a public or private organization plan its financial future should consider becoming a budget analyst. The guidance that these professionals provide can have a far-reaching impact within an organization, as government officials and company executives use budget analysts’ evaluations to present, justify, and implement many spending decisions.

A common way to get started in this field is with an entry-level job in finance or a related area. However, most employers hire budget analysts with a bachelor’s degree in accounting or a similar field. By gaining a formal education, aspiring analysts can meet common job requirements, expand their skills, and prepare themselves for various roles.

What Does a Budget Analyst Do?

Budget analysts are financial experts who estimate and review budgets, supervise spending, recommend cost-saving measures, and manage funding requests. Working independently or as part of a financial team, they focus on certain initiatives or departments, or manage budgets for an entire agency or organization.

Budget analysts’ specific duties may vary by the size and type of organization they work for, but here are some of their common day-to-day responsibilities:

Creating yearly and multiyear budget estimates
Managing and processing funding requests
Identifying areas of waste and mismanagement
Providing business advice to support or reject types of funding
Presenting budget reports to executives
Exploring alternative funding sources

Typical Work Environments

Approximately 50,800 budget analysts were employed in 2023, according to the U.S. Bureau of Labor Statistics (BLS). They are needed in virtually every industry that requires a professional to plan and monitor its finances. These professionals generally work full time in office environments. Analysts employed by the government may travel to meet with people in different agencies. Some analysts are self-employed and provide consultations in their own workspace.

The BLS identifies these industries as the largest employers of budget analysts:

Federal government: 26%
State, local, and private educational services: 15%
State government: 12%
Local government: 10%
Professional, scientific, and technical services: 8%

Analysts also work for nonprofit organizations and companies.

Budget Analyst Education Requirements

Most budget analysts hold a bachelor’s degree. The role is popular for those with an accounting degree, but other relevant degree fields include social science, mathematics, financial planning, statistics, and business. College courses in statistics, accounting, and economics provide a foundation that prepares professionals to perform common budget analyst duties.

Optional Certifications

Certification is optional for budget analysts, but it may help individuals improve their career advancement opportunities and salary potential.

One common certification is the certified budget analyst (CBA) credential from the American Institute of Business & Management (AIBM). Candidates need to have a bachelor’s degree and two to five years of relevant experience. They must pass a certifying examination, which includes 50 multiple-choice questions covering areas such as budgeting fundamentals, financial analysis and forecasting, budget control and compliance, and advanced budgeting strategies.

Professionals interested in working for a government agency — at the federal, state, or local level — can consider the certified government financial manager (CGFM) credential from AGA, an association for financial professionals. The CGFM designation signifies expertise in governmental accounting, budgeting, auditing, financial reporting, and related areas. Candidates must have a bachelor’s degree and at least two years of experience in government financial management, and they must pass three certifying examinations.

Becoming a certified public accountant (CPA) is another avenue budgeting professionals can consider pursuing to advance in their career. CPA candidates typically need a combination of experience and education to qualify. To apply for their license, they’ll need to pass an examination that includes multiple-choice and task-based simulation questions covering areas such as auditing and attestation, and financial accounting and reporting. Individual states also have their own CPA requirements. The National Association of State Boards of Accountancy provides more detailed state information.

Budget Analyst Skill Requirements

The length and type of experience needed to begin working as a budget analyst vary by employer. Typically, a few years of relevant experience are needed to manage budgets without supervision. The most common ways to gain experience include completing a financial internship, volunteering, or holding an entry-level accounting or bookkeeping role.

Aside from experience, these financial professionals need to possess a range of skills, including analytical, communication, writing, forecasting, and critical thinking skills. Given the role, analysts also must have superb math skills to be able to perform calculations and solve complex equations. A strong knowledge of budgeting and spreadsheet software is crucial as well, so that analysts can update and manage financial information.

Budget Analyst Salary and Job Outlook

According to May 2024 data from the BLS, budget analysts have a median annual salary of $87,930. The most common sectors for budget analysts and their median salary in each sector are as follows:

State, local, and private educational services: $77,460
State government: $80,280
Local government: $84,510
Professional, scientific, and technical services: $98,390
Federal government: $99,800

The BLS projects 4% job growth for budget analysts between 2023 and 2033, which is equal to the average job growth rate projected for all occupations. Analysts are expected to be in demand to help organizations manage and develop budgets for various uses. Their expertise also is expected to be needed to help government offices outline and present budgetary information to the public and elected officials.

Put Your Financial and Analytical Skills to Work as a Budget Analyst

A budget analyst is one of many officials who help keep an agency or organization financially accountable. To develop the skills necessary for a successful career in the field, prospective analysts need a formal education and practical experience in accounting, finance, or a related field.

Warner Pacific University Online offers an online Bachelor of Arts in Accounting program that provides foundational financial courses in relevant subjects such as quantitative analysis, business policies, accounting information systems, and cost accounting. Taking one accelerated course every five or six weeks, students can develop their skills incrementally.

Learn more about how WPU Online can help prepare you for a career as a budget analyst.

Sources:
AGA, CGFM Certification
Indeed, “13 Pros and Cons of Being a Budget Analyst (Plus Definition)”
Indeed, “What Is a Budget Analyst? (Duties, Salary and Qualifications)”
Intuit, “How to Become a CPA (a Comprehensive Guide)”
The American Institute of Business & Management, Certified Budget Analyst (CBA)
U.S. Bureau of Labor Statistics, Budget Analysts
U.S. Customs and Border Protection, Budget Analyst