Budget Analyst Essay

1601 Words4 Pages
bulb-icon

Recommended: Importance of budgets n.in an organisation

How does an organization decide where to its spend money? Which product or service should the organization use? If we hire a new administrative assistant will this increase our efficiency and profit? All of these questions can be answered by a budget analyst. The role of a budget analyst is to help organizations manage their finances. All organizations operate with some form of a budget or spending limit.
Duties and Responsibilities
Budget analysts are responsible for considering the benefits and costs of tasks that range from small projects to organization-wide initiatives. Determining how much funding a project or initiative receives is influenced by whether the benefits outweigh the costs, and if so, by how much. To illustrate the benefits …show more content…

The content that may be included in a budget report are balance sheets, income statements, other financial records, internal management analysis, external regulatory reports, and performance metrics. Reports may also be comprised of budgetary proposals and analysis submitted by internal or external governmental agencies, departments, experts, persons, and budget analyst (“How to become a budget analyst,” n.d.). Within budget report proposals and analysis, budget analysts may use financial information and research to devise short-term and long-term organizational initiatives.
Budget report proposals and analysis are typically produced to present to managers, chief executives, legislators and law enforcers. However, these reports can also be created to inform other organizational employees and the public. With a wide range of potential audiences, budget analysts must emphasize accuracy, thorough research and evaluation, and regulatory compliance. Due to a variety of audiences, effective budget analysts are able to communicate complicated decisions in layman terms (“Budget analyst,” n.d.). Ultimately, the work of a budget analyst may result in the success or failure of an

Show More
Related

  • Budget Analysis

    1842 Words  | 4 Pages

    Budgeting Assignment A company's budget serves as a guideline in planning and committing costs in order to meet tactical and strategic goals. Tactical goals such as providing budgetary costs for daily operations, and strategic objectives that include R&D, production, marketing, and distribution are all part of the budgeting process. Serving as a guideline rather than being set in stone, the budget is a snapshot of a manager's "best thinking at the time it is prepared." (Marshall, 2003, p.496)

    Read More

  • The Pros and Cons of Participative Budgeting

    1276 Words  | 3 Pages

    Participative budgeting has the advantage of transferring information from the subordinate to their superior This knowledge is likely to be more reliable and accurate as the subordinate has direct contact with the activity and therefore is in the best position to make budget estimates. Participative Budgeting also gives subordinates the opportunity to discuss organisational issues with superiors, in which an exchange of information and ideas can help to solve problems and agree future actions (Nouri & Parker 1998). This transferral of information is important particularly when dealing with a matter of high task difficulty as, the more difficult a task, the greater the need for consultation with subordinates. Participative budgeting has a higher performance rate when dealing with more difficult and more volatile tasks than non consultative budgeting (Lau & Tan 1998)

    Read More

  • Essay On Beyond Budgeting

    1789 Words  | 4 Pages

    Quantitative plans are called budgets. Budgets are prepared to impose cost controls on the activities of an organization (Chenhall, 1986).Budgets are then used to evaluate the performance of the management and budget itself is considered as a standard to evaluate the performance Solomon, 1956). The purpose of the budget is also to implement the strategy of the organization and communicate it to the employees of the organization Rickards (2006). The change in the external environment has led to the change in the budgeting approaches from the initial cash based budgets to the zerio based budgets (Bovaird, 2007).

    Read More

  • Healthcare Budget Analysis

    478 Words  | 1 Pages

    Budgeting is one of the phases in the management control system. Budget development is critical to identify revenue sources and expenditures throughout the year that will help a health care firm achieve its goals and objectives in a fiscal year. Development of the yearly budget is a good way to manage cost control within the healthcare organization. There are four objectives recommended for consideration by the American Hospital Association when developing a healthcare firm’s budget plan: - Providing a written expression, in quantitative terms, of the policies and plans of the healthcare firm or organization. - Provide a basis for the evaluation of financial performance in accordance with the plan.

    Read More

  • Cost Estimating

    1518 Words  | 4 Pages

    A budgetary estimate is used to allocate money into an organization's budget. Many organizations develop budgets at least two years into the future. Budgetary estimates are made one to two years prior to the software project completion. The accuracy of budgetary estimates is typically ten percent below to twenty-five percent above the actual final cost of the project.

    Read More

  • Municipal Budgeting and Revenue

    2489 Words  | 5 Pages

    Every government entity has a primary goal, which is to be as efficient and effective as possible while expending the smallest amount of resources. In addition, the resources expended cannot be more than the resources received as revenues. The budgeting process is a tool that assists government entities in being both efficient and effective. Before a budget can be adequately prepared, you must first understand the budgeting concept and secondly be knowledgeable of budget types.

    Read More

  • Air Operations Group Budget Analysis

    272 Words  | 1 Pages

    Provides advice, assistance, and guidance on budgeting and related information to program managers and budget-related personnel in subordinate organizations. Conducts analyses, reviews, and special studies of budget and/or related information.

    Read More

  • The Necessity of Budgeting in an Organization

    1396 Words  | 3 Pages

    Budgets have to be successful managed in any profitable organisation worldwide. When a correct budget is generated, it means that expenditures do not over exceed the total available amount of money hold by the company and it creates a great motivation for managers to achieve their goals. Defining budget, it is a particular plan that is expressed in quantitative terms. It also determines the acquirement and the use of the financial and other operating resources in an organisation in a specific period of time (Seal et al, 2009, pg434). The period might be divided into quarterly or monthly budgets. Any procedure ...

    Read More

  • Budget Paper

    502 Words  | 2 Pages

    This is a brief paper to explains what a budget basically does as well as how a nonprofit can use budgeting as a communication tool, planning/control tool and a management tool. Budgets can be thought of as a means of helping your nonprofit keep on track with regards to saving money, spending and tracking income streams as well as being used as a communication, planning/control and management tool (Bradley, 2017). Budgets can be used as a communication tool in two separate ways: project communication (the budget of a specific marketing scheme or project can be used to communicate an individual’s ideas on the project with the other team members) and investor communication (investors do not only care about your past financial performance but

    Read More

  • Budgeting For Non-Profit Organizations

    625 Words  | 2 Pages

    The Budget as a Planning Tool From the definition of the term “budget”, it is clear that the major purpose of a budget is to plan the resources for an organization, as well as for its future growth. A budget can be used as a planning tool because it helps organizations analyze the available resources, so that it can allocate the expenditures within reasonable amounts; based on the resources accessible to the organization. The planning of the usage of resources is critical for an organization because it helps to

    Read More

  • Budgeting And Planning Process Paper

    1490 Words  | 3 Pages

    Good budgeting is a broadly defined process that has political, managerial, planning, communication, and financial dimensions. The following definition recognizes the broad scope of the budget process and provides a base for improvement of the budget process. The budget process consists of activities that encompass the development, implementation, and evaluation of a plan for the provision of services and capital assets. A good budget process is characterized by several essential features. A good budget

    Read More

  • Cons And Limitations Of Budgeting: Limits And Limitations Of Budgeting

    1096 Words  | 3 Pages

    The budget established at the beginning of an accounting period is continually amended to reflect variances that arise due to changing circumstances on the project level. Finance with the help of the project delivery teams makes provision for reviewing the budget versus the forecast over 3 main

    Read More

  • The Importance Of Economics On Personal Life

    1804 Words  | 4 Pages

    It requires an adequate and sound organizational structure, that is, there must be a definite assignment of responsibility for each function of the enterprise. Budgeting compels all the members of management, from the top to bottom to participate in the establishment of goals and plans. Budgeting compels departmental managers to make plans in harmony with the other departments and of the entire enterprise. Budgeting helps the management to put down in figures what is necessary for a satisfactory performance. Budgeting helps the management to plan for the most economical use of labor, material and capital. Budgeting tends to remove the cloud of uncertainty that exists in many organizations, especially among lower levels of management, relative to basic policies and objectives. Budgeting promotes an understanding among members of management of their co-workers' problems. Budgeting force management to give adequate attention to the effects of general business conditions. Budgeting aids in obtaining bank credit as banks commonly require a projection of future operations and cash flows to support

    Read More

  • Importance Of Budgetary Control

    1938 Words  | 4 Pages

    e budget is a document which allows an organisation to estimate income and expenditure over a certain time period usually the previous year and altered to accommodate any foreseeable changes. Many organisations, individuals plan their financial activities by preparing budgets. For an organisation to be successful, its crucial to plan its financial activities in the future well in advance. It is important to estimate its income and expenditures (Ibid, 2005) using data from past events and allow for anticipated future trends.

    Read More

  • The Advantages And Disadvantages Of Line-Item Budgeting

    840 Words  | 2 Pages

    A disadvantage of this type of budgeting is that it leaves room for erroneous reporting by departmental heads to ensure their programs are not cut due to lack of performance output. Performance budgeting can become a burden for substantial budgeting endeavors as funding requirements for various agencies can vary

    Read More

More about Budget Analyst Essay

Open Document