Job Description for a Budgeting Manager

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Budgeting managers are important for keeping the budget and budget process on track. They enforce accountability to the budget and its application. Budgets are put into place to safeguard profits. If a company spends too much to produce a produce or provide a service, the profit would be minimal or nonexistent. The budget places limits on spending and allows the process to work as it was planned with profit as the end goal.

Commincation, Liaison and Budget Leader

  • A budget manager's duties are never over. They active in the budgeting process and active in the budget application throughout the fiscal year. Budget managers are responsible for communicating with management about budget issues concerning their departments. Communication is a key skill that all budget managers must possess. They must be able to communicate verbally in writing and via any other source necessary. Without communications between accounting and the line managers the operation would lack accountability.

Departmental Budgets

  • The budget manager is responsible for working with all department managers related to financial issues. They are to provide feedback in relation to the departments' expenses, production, revenue contributions and any potential variances in the budgeted costs. Most department managers and line managers are not well-versed in accounting issues. This makes it necessary for the budget manager to frame the financial reports and information in a non-accountant format. They act as a liaison between accounting and the production management team.

Budget Analysis

  • The budget manager is responsible for performing analyses of the expenditures in relation to the budgeted figures. Variance analysis is done to ensure that every aspect of a departments expenses are on budget. Variances tell how far a cost is from the budgeted cost. For example, if the budget allows for the expense of $20 of raw material per manufactured unit and the department is using $25, then they are over budget by $5 per unit. Variance analysis can be conducted on all input factors such as man hours, rate-material input, inventory consumption, machine hours, process time and many others. This analysis is key to guiding a department through the process of staying on budget.

Budget Forecasting

  • The budget manager is responsible for taking a proactive approach to budgeting. They must perform budget forecasting to help determine the course of a department over a period of time that extends into future business periods. Budget forecasting helps a department budget for daily, weekly, monthly and quarterly allocations and needs. This process establishes short term, quantifiable guidelines for the immediate upcoming business period. As the year goes by the actual budget can be compared to the forecasted budget. Any forecasted budget issues or deficiencies can be planned for and solved before they are a larger problem.

Requirements and Opportunities

  • Budget managers are accounting and finance professionals. These opportunities require a bachelor’s degree in accounting, finance, mathematics or business administration. Multiple years, approximately four to five years, of experience is required for this position. Experience in the accounting or budget departments is mandatory. According to the Bureau of Labor Statistics, budget managers make an average salary of $66,300. The Bureau also went on to say that, “Budget analyst and manager jobs are expected to increase about as fast as the average, and job prospects should generally be good, especially for applicants with a master’s degree.”

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