List of Top 4 Careers in Budgeting
Below is the list of some of the top jobs in budgeting that you can opt for in your finance career.
Table of contents
Overview of Budgeting Career
Budgeting is a strategic implementation of the business plan of a company or a project to achieve the desired goals and objectives. BudgetingBudgeting Budgeting is a method used by businesses to make precise projections of revenues and expenditure for a future specific period of time while taking into account various internal and external factors prevailing at that time. also means forecasting the future of the company by creating appropriate budgets to take care of the financial needs in the long term. Budgeting is important because of the following reasons –
- Aids in planning and crisis management, i.e., it allows the company management to take appropriate actions when a crisis arises.
- Encourages building a long-lasting relationship with other departments since the budgeting manager needs to take the help and inputs from the other departments to complete the budget.
- It helps in having a clear understanding amongst the employees in the organization as they are made aware of the budgetary allocations in the next financial year. Also, this process helps in creating synergies with other departments like Operations, Accounts, Credit, Investments, and HR.
- Motivates the sales teams to achieve their targets and goals.
- It helps control the company’s financial position by analyzing the expected and actual budget variances.
- It is a vehicle to measure the performance of the employees.
Let us now look at the top 4 budgeting career options in detail –
Career #1 – Financial Planning & Analysis
Who is Financial Planning & Analysis?
Financial Planning & Analysis takes care of the company’s budgets in the FP&A department. Every company has its FP&A department to take care of the financial projectionsThe Financial ProjectionsFinancial projection is a statistical forecast of a company's future revenue and expenditure based on historical market patterns, internal factors, data interpretation, anticipated market developments, and experiences. To meet production or sales targets, both short-term and long-term financial estimates are sometimes evaluated. and periodically prepare a business plan to showcase the future roadmap.
|Financial Planning & Analysis – Job Description
|Responsible for building detailed business plans and ensuring that the company has no liquidity problems in the long term.
|Ensure the company’s future is secured and sufficient funds are available for running the business and making arrangements for the fundraising requirements the company might require.
|All large corporations.
|The median annual salary for a valuation analyst will be between $80,000 to $1,00,000.
|Demand & Supply
|It is a highly demanded profile since it requires extensive financial planning skills and experience working on large databases.
|CFA/CPA / MBA/ Valuation Expert from Tier -1 Universities with at least 5-10 Yrs of Exp.
|CPA/ MBA / CFP/ CFA
|Chance to take part in the growth strategy meetings of the company along with the top management.
|Extensive data crunching and working on excel sheets can be boring.
Career #2 – Financial Analyst
Who is a Financial Analyst?
A financial analyst is a professional who analyses the company’s financial position.
|Financial Analyst – Job Description
|To do the business analysis and develop a report showcasing the strengths and weaknesses.
|He will support the senior analyst all day today, working on preparing cash flows or drafts on policies.
|As per the US Bureau of Labor Statistics (https://www.bls.gov/), the number of jobs in this category was 2,96,100 as of 2016 and is expected to grow by 11% from 2016 to 2026.
|All large corporations and bulge bracket investment banks.
|The median annual salary for a financial analyst as of May 2018 was $ 85,660, per the US Bureau of Labour statistics.
|Demand & Supply
|Demand for a financial analyst is growing rapidly since a professional role requires extensive financial and accounting skills.
|A bachelor’s degree or an MBA from a reputed college.
|CFP or MBA, or CPA
|High growth potential in the future with heavy compensation and an exciting job profile ahead.
|Long working hours and high pressure.
Career #3 – Budget Analyst
Who is a Budget Analyst?
Budget AnalystBudget AnalystBudget Analyst is a professional data-oriented person. He/she organizes and allocates various financial resources (Income from business/profession, interest income from bank deposits, profits from trading in stocks or shares) by monitoring each spending on an estimation basis and then produces probable surplus/deficit from the said calculations. advises companies on how to prepare financial budgets and how to organize their finances.
|Budget Analyst – Job Description
|Responsible for preparing detailed budgets in coordination with the management and other departments.
|To build a detailed business plan & budget for the company in which clear funds will be allocated to the activities in the next year.
|As per the US Bureau of Labor Statistics (https://www.bls.gov/), the number of jobs in this category was 58,400 as of 2016 and is expected to grow by 7% from 2016 to 2026.
|All Large Corporates.
|The Median annual salary for a budget analyst will be $ 76,220 as per https://www.bls.gov/.
|Demand & Supply
|Highly demanded profile since the budgets form an integral part of the financial decision-making and strategy formulation.
|CFA/CPA/MBA/Valuation Expert with 10+ Yrs of Exp in Budgeting.
|CFA/CPA/MBA from Tier –I University
|Preparing detailed business plans helps the analyst to know all the insights of the company and also the roadmap for the future.
|Extensive working on spreadsheets can be boring.
Career #4 – Management Accountant
Who is a Management Accountant?
Management Accountant works very closely with the management and the budgeting manager.
|Management Accountant – Job Description
|To analyze the movements in the budget periodically and work out the variance by comparing it with the actuals.
|Management Analyst or Cost Accountant
|Is to oversee the budgets prepared by the analyst and give his comments on the same.
|The Bureau of Labor Statistics has displayed no data.
|All large Corporates.
|The median annual salary for the same can be anywhere between $ 75,000 to $1,00,000.
|Demand & Supply
|Highly demanded role since the variances in the expected and actual budgets must be communicated to the management adequately.
|CFP/CPA / MBA from Tier -1 Universities with at least 15 Yrs of Exp.
|Work very closely with senior management.
|Justifying the variances in the budgets and the assumptions used in preparing the business plans can be very difficult if things don’t go well.
Budgeting is one of the most crucial roles in any organization as it lays down the path or the road map for the company to plan its strategic decisions.
This has been a guide to Careers in Budgeting. Here we provide the list of top 4 job options in budgeting career: Financial PlanningFinancial PlanningFinancial planning is a structured approach to understanding your current and future financial goals and then taking the necessary measures to accomplish them. Because this does not begin and end in a specific time frame, it is referred to as an ongoing process. & Analysis, Financial Analyst, Budget Analyst, and Management Accountant. You may also have a look at these finance career articles below –
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