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.
Overview of Budgeting Career
Budgeting is a strategical implementation of the business plan of a company or a project to achieve the desired goals and objectives. Budgeting Budgeting 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 situation arises.
- Encourages to build a long-lasting relationship with other departments since the budgeting manager needs to take the help and inputs from the other departments as well in order 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, and 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 in controlling the financial position of the company by analyzing the variances in the expected budget vs. the actual budgets.
- It is a vehicle in order 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 budgets of the company 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 prepare a business plan on a periodic basis to showcase the roadmap for the future.
|Financial Planning & Analysis – Job Description|
|Responsibilities||Responsible for building detailed business plans and ensure that the company does not have any liquidity problems in the long term.|
|Actual Role||Ensure the future of the company is secured and there are sufficient funds available for running the business and making arrangements for the fundraising requirements that the company might require.|
|Top Companies||All large corporates.|
|Salary||The median annual salary for a valuation analyst will be between $80,000 to $1,00,000.|
|Demand & Supply||Highly demanded profile since it requires extensive financial planning skills along with experience working on large databases.|
|Education Requirement||CFA/CPA / MBA/ Valuation Expert from Tier -1 Universities with at least 5-10 Yrs of Exp.|
|Recommended Courses||CPA/ MBA / CFP/ CFA|
|Positives||Chance to take part in the growth strategy meetings of the company along with the top management.|
|Negatives||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 financial position of the company.
|Financial Analyst – Job Description|
|Responsibilities||To do the business analysis and come with a report showcasing the strengths and weaknesses.|
|Actual Role||He will support the senior analyst all day today working like preparing cash flows or drafts on policies.|
|Job Statistics||As per the Bureau of Labour statistics of the US (https://www.bls.gov/), the number of jobs in this category was 2,96,100 as of 2016 and are expected to grow by 11% from 2016 to 2026.|
|Top Companies||All large corporates and bulge bracket investment banks.|
|Salary||The median annual salary for a financial analyst as of May 2018 was $ 85,660 As per Bureau of Labour statistics of US|
|Demand & Supply||Demand for a financial analyst is growing rapidly since being a professional role it requires extensive financial and accounting skills.|
|Education Requirement||A bachelor’s degree or an MBA from a reputed college.|
|Recommended Courses||CFP or MBA or CPA|
|Positives||High growth potential in the future with heavy compensation and an exciting job profile ahead.|
|Negatives||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 the financial budgets and how to organize their finances.
|Budget Analyst – Job Description|
|Responsibilities||Responsible for preparing detailed budgets in coordination with the management and other departments.|
|Actual Role||To build a detailed business plan &budget for the company in which clear funds will be allocated to the activities in the next year.|
|Job Statistics||As per the Bureau of Labour statistics of the US (https://www.bls.gov/), the number of jobs in this category was 58,400 as of 2016 and are expected to grow by 7% from 2016 to 2026.|
|Top Companies||All Large Corporates.|
|Salary||The Median annual salary for a budget analyst will be $ 76,220 as per the https://www.bls.gov/|
|Demand & Supply||Highly demanded profile since the budgets form an integral part of the financial decision making and strategy formulation.|
|Education Requirement||CFA/CPA/MBA/Valuation Expert with 10+ Yrs of Exp in Budgeting.|
|Recommended Courses||CFA/CPA/MBA from Tier –I University|
|Positives||Preparing detailed business plans helps the analyst to know all the insights of the company and also the roadmap for the future.|
|Negatives||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|
|Responsibilities||To analyze the movements in the budget on a periodic basis and work out the variance in the same comparing it with the actuals.|
|Designation||Management Analyst or Cost Accountant|
|Actual Role||Is to overseas the budgets prepared by the analyst and give his comments on the same.|
|Job Statistics||No data has been displayed by the Bureau of Labor Statistics.|
|Top Companies||All large Corporates.|
|Salary||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 need to be communicated to the management in a proper manner.|
|Education Requirement||CFP/CPA / MBA from Tier -1 Universities with at least 15 Yrs of Exp.|
|Positives||Work very closely with senior management.|
|Negatives||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 and way ahead.
This has been a guide to Careers in Budgeting. Here we provide the list of top 4 job options in budgeting career, which include Financial Planning & Analysis, Financial Analyst, Budget Analyst, and Management Accountant. You may also have a look at these finance career articles below –