Budget Manager Job Description, Skills, and Salary
Get to know about the duties, responsibilities, qualifications, and skills requirements of a budget manager. Feel free to use our budget manager job description template to produce your own. We also provide you with information about the salary you can earn as a budget manager.
Who is a Budget Manager?
A budget manager is responsible for the revenue and expense processes within an organization. Financial accounting, forecasting, auditing, and process supervision are all components of this position. This position may be on an organizational or project-based basis. While the title is most frequently used in government agencies and nonprofit organizations, it can also refer to a specific role in for-profit businesses that engage in project management.
Typically, organizations have an operating budget and a capital budget, or budget for facilities and equipment. A capital budget is typically static, as capital expenditures are typically scheduled in advance and require little daily management. However, operating budgets are extremely fluid. These budgets are based on revenue and expense projections made at the start of the year but may prove inaccurate as business operations unfold in real-time.
Budget managers are typically hired as middle management specialists by chief financial officers (CFOs) or directors of finance. At the start of the fiscal year, when an organization is planning for the coming year, the budget manager oversees all aspects of the development of the operating and capital budgets. His responsibilities, however, do not end with future planning. Additionally, a budget manager monitors staff, departments, and projects to ensure revenue and expense targets are met. If revenue falls short of budget or expenses exceed budget, the budget manager informs the organization’s executives so that projections and plans can be adjusted.
A budget manager’s specific responsibilities include forecasting revenue and expenses for single or multiple years across an organization or project. Typically, for operating budgets, these forecasts are broken down by project or department. After the fiscal year’s budget is approved, the manager works with department and project managers to ensure that their activities remain within budget constraints. Budget managers communicate frequently with executives about the operating budget monthly, to report variances and suggest ways to adjust the budget to reflect actual circumstances.
At the end of the fiscal year, the manager reconciles the budget to actual expenses incurred and revenue generated and informs the organization’s executives and tax professionals of this information. The process is then repeated, with future annual budgets being adjusted to reflect the events of the previous year. Meanwhile, the budget manager is responsible for establishing policies and procedures for reporting revenue and expenses, as well as for managing an industry-compliant budget process.
Businesses frequently maintain budgets for individual departments in addition to an overall company budget. Frequently, departmental managers are also accountable for managing their department’s budget. New managers can quickly master budget management by utilizing a variety of skills and resources.
Budgets frequently include four components:
- Revenue
Revenue is defined as revenue generated by sales, investments, or other sources. Every source of income should be tracked in the budget.
- Operating expenses
Operating expenses are the costs of running a department or business, such as machinery maintenance, rent, and utilities.
- Capital expenses
Capital expenses are expenses incurred when a department or business invests. Capital expenses can take many forms, including the construction of a new building or the acquisition of a patent for a product.
- Employee expenses
This includes all costs associated with staffing, such as wages and health care.
Managers can anticipate forecasting expenses for a year or other predetermined period and track expenses to ensure the department or company can cover its costs.
Budget management can be accomplished using either cash or accrual accounting. Choosing the appropriate accounting style will depend on a variety of factors, including the size of the business, budget management experience, and the items on the budget.
Budget Manager Job Description
Below are the budget manager job description examples you can use to develop your resume or write a budget manager job description for your employee. Employers can also use it to sieve out job seekers when choosing candidates for interviews.
The duties and responsibilities of a budget manager include the following:
- Identifying the financial capabilities of the organization, calculating financial constraints, and approving budget strategies.
- Establishing standards and procedures to guide the organization’s budget administration.
- Developing strategies to improve the efficiency of our organization’s budgeting and spending.
- Monitoring spending patterns and putting in place measures to encourage budget adherence.
- Implementing and maintaining accounting best practices to ensure the organization’s financial soundness.
- Educating management and staff on complex accounting concepts.
- Formulating and developing a budget in collaboration with appropriate individuals and organizations.
- Developing and maintaining positive relationships with external auditors, attorneys, and regulatory authorities.
- Reporting and explaining budget decisions.
- Analyzing financial information about the company (such as cash management expenditures and revenues), ensuring that financial operations do not exceed budget limits.
- Examining budget proposals and requests
- Conducting a review of completed budgets to ensure compliance with applicable laws and regulations.
- Creating and presenting budget models, including those at the departmental and enterprise levels.
- Creating and managing effective budgeting policies and procedures
- Making spending recommendations to optimize the resulting budget.
- Analyzing the variances between the company’s estimated financial results and the actual ones at the end of each reporting period.
- Ascertaining that all departments adhere to their budget submission deadlines.
- Presenting annual budget results to the company’s executives and top managers.
- Preparing budget models for various departments as well as the entire organization
- Analyzing financial data/processes (for example, cash management, expenditures, and revenues) to ensure that all operations remain within budget
- Presenting budgets to upper management
- Conducting an audit of the company’s budget to ensure compliance with all applicable legal regulations
- Assuring that Department Managers submit budgets on time
- Budgeting procedures and policies that are effective in design and implementation
- Examining and approving budget requests
- Budgeting for future expenditures
- Identifying variances between budgeted and actual financial results
- Providing suggestions for optimizing a business’s budget utilization to increase profits
Other important tasks include the following:
- Financial Information Interpretation
Budget managers monitor financial trends within the organization and within departmental budgets to rein in spending where possible and adjust budgets as necessary. They monitor revenue and communicate budget issues to the company’s various departments.
- Develop Business Plans
Budget managers are responsible for developing strategic business plans and estimating future financial requirements that must be accounted for. This is accomplished by analyzing previous budgets, economic trend data, and financial developments that could affect the organization’s potential revenue.
- Financial Consultation
Budget managers keep an eye on the company’s spending to ensure it stays within budget and informs department heads of available funds. Additionally, they verify the accuracy and compliance of financial proposals with applicable laws and regulations.
- Building Relationships with External Organizations
Budget managers cultivate strong relationships with external contacts such as auditors, solicitors, and governmental agencies. This includes liaising with auditors to ensure that annual audits are conducted and communicating funding recommendations to legislators and other organization members.
- Creating Expense Reports
Along with the financial analysis, budget managers communicate their recommendations to senior management via expenditure reports, which highlight suggested changes to reconcile variances between the approved budget and actual spending.
- Budgeting & Oversight
A budget manager is accountable for the academic department’s or administrative office’s financial integrity. Financial integrity is maintained through close monitoring and compliance with the unit’s budgets within the university’s financial reporting system. Budget managers are accountable for ensuring that the unit’s expenses do not exceed its allocated budget.
Budget managers are in charge of budget requests, submitting transfers, approving transactions, and requesting payments. All transactions must adhere to university policies and procedures. Budget managers should conduct regular reviews of their accounts to ensure accurate recording of account expenses.
- Authority of Approval
Budget managers who delegate approval authority must ensure that the designee understands the approval requirements and exercises sound judgment to safeguard Loyola University’s resources. While a budget manager may delegate tasks and responsibilities to a designee, the budget manager ultimately bears responsibility for the budget’s management. In the absence of the budget manager, any designee must have the budget manager’s written authorization. All requests should include authorization.
A budget manager’s signature on a document indicates that the expense has been reviewed and the budget manager is accountable for it. A budget manager may not approve his or her transactions for certain types of expenditures. These expenditures may include but are not limited to, university credit card payments made in the budget manager’s name, cell phone payments made in the budget manager’s name, and expense reimbursements made to the budget manager. Additionally, signature approval must adhere to the University’s contract administration policy.
Qualifications
- A bachelor’s degree in accounting, business administration, finance, or a related field.
- At least five years of experience as a budget analyst, financial analyst, business accountant, or a position of a similar nature.
- A track record of successfully promoting organizational growth through effective budget management.
- Comprehensive knowledge of legal frameworks and accounting procedures for businesses.
- Accounting software experience (QuickBooks, Sage X3, etc.).
- Excellent written and interpersonal communication skills.
- Analytical and problem-solving abilities are strong.
- Collaboration with a variety of internal and external stakeholders.
- Excellent organizational abilities and a keen eye for detail.
- Outstanding leadership abilities and the ability to delegate effectively.
Essential Skills
- Strong numerical ability
Because budget managers spend the majority of their week monitoring financial information, they must have an exceptional capacity for analyzing data and numbers, with an emphasis on budget management.
- Computer skills
From data mining to creating reports and spreadsheets, budget managers rely heavily on computer programs.
- Communication
Budget managers interact with a variety of internal and external stakeholders, including auditors and solicitors, so the ability to effectively communicate complex financial information in plain language is critical.
- Attention to detail
The ability to identify discrepancies in data or to interpret cash flow problems is necessary for success as a budget manager.
- Investigation
Budget managers should have an investigative spirit and take pleasure in mining information for specific data or trends.
- Budget preparation
Budget preparation for the coming year is a critical skill for managers. Consider business objectives and departmental goals when developing your annual budget. Begin by identifying the overhead costs associated with the department’s operation. Then you can consider capital improvements to the department. Taking the time to create a detailed and functional budget will significantly simplify its management.
- Analytical skills
Managers must be able to analyze their department’s financial health, and possibly the entire organization. Profitability and loss will affect the annual budget. An excellent budget manager is capable of reviewing financial statements and making informed budgetary decisions based on the information gathered.
- Forecasting financial data
Financial forecasting is the process of predicting how a business or department will perform at a specified point in the future. Financial forecasting must be incorporated into budget management. Outstanding managers use financial forecasting to determine where to invest and where to anticipate additional costs. This will assist them in balancing their budget for the year.
How to Become a Budget Manager
Budget managers are typically required to hold a bachelor’s degree in accounting, finance, business, public administration, economics, statistics, political science, or sociology. Certain employers may require master’s degrees.
Government budget managers may pursue the Association of Government Accountants’ Certified Government Financial Manager credential. Candidates must possess a bachelor’s degree, 24 credit hours of financial management coursework, two years of professional-level experience in governmental financial management, and pass a series of exams to earn this certification. Budget managers must also complete 80 hours of continuing education every two years to maintain their certification.
Budget managers typically gain experience on the job by working through an entire budget cycle. Managers become familiar with the various steps involved in the budgeting process during the cycle, which typically lasts one year.
Where to Work as a Budget Manager
Budget managers work in a variety of different environments, including government agencies, large corporations, and nonprofit organizations.
Budget Manager Salary Scale
Budget managers earn an average annual salary of $74,000 in the United States. The bottom 10% earned less than $48,000 per year, while the top 10% earned more than $111,000 per year. Bonus structures can be substantial, with the potential for additional earnings of up to $14,000. Almost always, medical and dental insurance is included as part of the salary package. Salary can be influenced by location and level of experience. The Bureau of Statistics forecasts that this sector will expand by 7% annually through 2026.