Budget Analysts And Financial Analysts
Budget analysts and financial analysts are closely involved with the economics. That is perhaps one of the reasons why they could be dealt with on a common platform. While the budget analysts work towards aiding the private and public organizations in organizing their finances, the financial analysts are actively involved in offering guidance to individuals and businesses in making important investment decisions.
The former are actively involved in preparing budget reports and monitoring institutional spending. The latter are actively involved in assessing the performance of bonds, mutual funds, stocks and other kinds of investments. As there is this small discrepancy in the nature of their jobs, the roles they perform also vary slightly from one another.
Duties of Budget Analysts:
1. They work with the project as well as program managers to come up with a budget for the organization.
2. They review the budget proposals for accuracy, compliance with the rules and regulations and completeness.
3. They put together the budgets of the department and the entire program too in order to arrive at a consolidated budget for the organization.
4. They contribute towards analyzing the proposed plans for finding alternatives in case the budget and its projected results are not satisfactory to the management.
5. They explain the recommendations put forth to the people in the organization and the legislators and the public at large.
6. They keep a keen eye on the spending of the organization and ensure that they do not go overboard.
7. They keep the program managers informed about the funds that are available and also estimate the funds that would be needed to meet the future demands.
The main function of the budget analysts is to advise the businesses, universities, governments and similar bodies on how to grow and organize their finances. They undertake the preparation of special reports and annual reports and also an evaluation of the budget proposals. They also provide technical analysis to the officials that head the organizations. For instance, in case of any kind of a discrepancy existing between the actual spending of the organization and the approved budget, these professionals will submit a report highlighting the same and then also make relevant recommendations that will help in reconciling the differences.
Duties of Financial Analysts:
1. These professionals actively recommend investments as well as collection of investments from their clients. Portfolio management is what they do.
2. They will evaluate the existing and historical data of finances and closely study the business and financial trends.
3. They will closely examine the financial statements of a company and ascertain its value.
4. They will also meet up with the company officials so as to get a deeper insight into the prospects of the company.
Their main job is evaluating various investment opportunities. They work in mutual funds, insurance companies, securities firms, pension funds and banks. They are also known by terms like investment analysts and securities analysts.
There are in fact two categories of financial analysts:
1. Buy-side analysts: These professionals are actively involved in developing investment strategies for businesses and companies that possess huge capital for investment. Such companies are called institutional investors.
2. Sell-side analysts: These professionals are engaged in advising financial services to sales agents who are actively involved in selling stocks, bonds and various other kinds of investments.
There may also be a few analysts who are a part of research houses apart from this buy side and sell side.
These professionals are engaged in actively focusing on those trends that affect a geographical region, a product or a specific industry. One analyst perhaps will focus on the energy industry; another analyst may be on foreign exchange. They need to gain a good understanding of the policies and regulations and the economic trends too as they are bound to affect investments.
We can come across different types of such professionals in the roles of portfolio managers, fund managers, risk analysts and ratings analysts. Funds and portfolio managers work as per the market conditions and take decisions related to buying and selling of stocks or hedge funds or mutual funds. The risk analysts ascertain the risk component involved in the investment and help their clients manage the unpredictability that is an integral part of the stock market.
Whether you are a budget analysts or a financial analyst you will be working closely with funds.