Budget manager

Budget managers assess financial proposals of different departments before granting financial resources to projects. They monitor the implementation of budget policies and procedures. They work closely with other departments in the evaluation of programs, their impact in the organisation, the revenue that they can yield, and the financial efforts required.

The following job titles also refer to budget manager:

budget coordinator
budget counselor
money manager
budget and planning manager
budget and policy manager
budget and analysis manager
budgeting manager
bookkeepers
money managers

Bachelor’s degree is generally required to work as budget manager. However, this requirement may differ in some countries.

ISCO skill level is defined as a function of the complexity and range of tasks and duties to be performed in an occupation. It is measured on a scale from 1 to 4, with 1 the lowest level and 4 the highest, by considering:

• the nature of the work performed in an occupation in relation to the characteristic tasks and duties
• the level of formal education required for competent performance of the tasks and duties involved and
• the amount of informal on-the-job training and/or previous experience in a related occupation required for competent performance of these tasks and duties.

Budget manager is a Skill level 4 occupation.

These occupations, although different, require a lot of knowledge and skills similar to budget manager.

budget analyst
financial controller
cost analyst
accounting manager
bank treasurer

These occupations require some skills and knowledge of budget manager. They also require other skills and knowledge, but at a higher ISCO skill level, meaning these occupations are accessible from a position of budget manager with a significant experience and/or extensive training.

This knowledge should be acquired through learning to fulfill the role of budget manager.

Accounting department processes: The different processes, duties, jargon, role in an organisation, and other specificities of the accounting department within an organisation such as bookkeeping, invoices, recording, and taxing.
Financial department processes: The different processes, duties, jargon, role in an organisation, and other specificities of the financial department within an organisation. Understanding of financial statements, investments, disclosing policies, etc.
Financial statements: The set of financial records disclosing the financial position of a company at the end of a set period or of the accounting year. The financial statements consisting of five parts which are the statement of financial position, the statement of comprehensive income, the statement of changes in equity (SOCE), the statement of cash flows and notes.
Financial forecasting: The tool used in performing fiscal financial management to identify revenue trends and estimated financial conditions.
Financial management: The field of finance that concerns the practical process analysis and tools for designating financial resources. It encompasses the structure of businesses, the investment sources, and the value increase of corporations due to managerial decision-making.
Corporate social responsibility: The handling or managing of business processes in a responsible and ethical manner considering the economic responsibility towards shareholders as equally important as the responsibility towards environmental and social stakeholders.
Budgetary principles: Principles of estimating and planning of forecasts for business activity, compile regular budget and reports.
Cost management: The process of planning, monitoring and adjusting the expenses and revenues of a business in order to achieve cost efficiency and capability.
Financial analysis: The process of assessing the financial possibilities, means, and status of an organisation or individual by analysing financial statements and reports in order to make well informed business or financial decisions.
Company policies: The set of rules that govern the activity of a company.

These skills are necessary for the role of budget manager.

Integrate strategic foundation in daily performance: Reflect on the strategic foundation of companies, meaning their mission, vision, and values in order to integrate this foundation in the performance of the job position.
Support development of annual budget: Support the development of the annual budget by producing base data as defined by the operations budget process.
Manage budgets: Plan, monitor and report on the budget.
Enforce financial policies: Read, understand, and enforce the abidance of the financial policies of the company in regards with all the fiscal and accounting proceedings of the organisation.
Analyse market financial trends: Monitor and forecast the tendencies of a financial market to move in a particular direction over time.
Strive for company growth: Develop strategies and plans aiming at achieving a sustained company growth, be the company self-owned or somebody else’s. Strive with actions to increase revenues and positive cash flows.
Monitor financial accounts: Handle financial administration of your department, keep the costs down to only necessary expenses and maximise the revenues of your organisation.
Control financial resources: Monitor and control budgets and financial resources providing capable stewardship in company management.
Manage staff: Manage employees and subordinates, working in a team or individually, to maximise their performance and contribution. Schedule their work and activities, give instructions, motivate and direct the workers to meet the company objectives. Monitor and measure how an employee undertakes their responsibilities and how well these activities are executed. Identify areas for improvement and make suggestions to achieve this. Lead a group of people to help them achieve goals and maintain an effective working relationship among staff.
Create a financial plan: Develop a financial plan according to financial and client regulations, including an investor profile, financial advice, and negotiation and transaction plans.
Interpret financial statements: Read, understand, and interpret the key lines and indicators in financial statements. Extract the most important information from financial statements depending on the needs and integrate this information in the development of the department’s plans.
Evaluate budgets: Read budget plans, analyse the expenditures and incomes planned during certain period, and provide judgement on their abidance to the general plans of the company or organism.
Advise on financial matters: Consult, advise, and propose solutions with regards to financial management such as acquiring new assets, incurring in investments, and tax efficiency methods.
Follow the statutory obligations: Understand, abide by, and apply the statutory obligations of the company in the daily performance of the job.
Exert expenditure control: Analyse expenditure accounts against the income and usages of different company units, companies, or organisms at large. Recommend usage of financial resources in efficient manners.
Plan health and safety procedures: Set up procedures for maintaining and improving health and safety in the workplace.
Explain accounting records: Provide additional explanation and disclosure to staff, vendors, auditors, and to any other instance about the way accounts were recorded and treated in the financial records.
Liaise with managers: Liaise with managers of other departments ensuring effective service and communication, i.e. sales, planning, purchasing, trading, distribution and technical.
Follow company standards: Lead and manage according to the organisation’s code of conduct.

This knowledge is sometimes, but not always, required for the role of budget manager. However, mastering this knowledge allows you to have more opportunities for career development.

Business management principles: Principles governing business management methods such as strategy planning, methods of efficient production, people and resources coordination.
Funding methods: The financial possibilities for funding projects such as the traditional ones, namely loans, venture capital, public or private grants up to alternative methods such as crowdfunding.
Public finance: The economic influence of the government, and the workings of government revenue and expenditures.
Statistics: The study of statistical theory, methods and practices such as collection, organisation, analysis, interpretation and presentation of data. It deals with all aspects of data including the planning of data collection in terms of the design of surveys and experiments in order to forecast and plan work-related activities.
Accounting techniques: The techniques of recording and summarising business and financial transactions and analysing, verifying, and reporting the results.

These skills and competences are sometimes, but not always, required for the role of budget manager. However, mastering these skills and competences allows you to have more opportunities for career development.

Inspect government expenditures: Inspect the financial procedures of a government organisation which deals with budget and resource allocation and spending to ensure that no faults are being made and no suspicious activity occurs in the handling of financial accounts, and that the expenditures are compliant with financial needs and forecasts.
Oversee the facilities services budget: Handle and control the expenditures and revenues from delivering the facilities management services and make sure the work is done within the foreseen budget.
Review investment portfolios: Meet with clients to review or update an investment portfolio and provide financial advice on investments.
Estimate profitability: Take various factors into account to calculate the cost and potential revenues or savings gained from a product in order to evaluate the profit that could be generated by the new acquisition or by a new project.
Prepare financial statements: Collect, entry, and prepare the set of financial records disclosing the financial position of a company at the end of a certain period or accounting year. The financial statements consisting of five parts which are the statement of financial position, the statement of comprehensive income, the statement of changes in equity (SOCE), the statement of cash flows and notes.
Analyse financial performance of a company: Based on accounts, records, financial statements and external information of the market, analyse the performance of the company in financial matters in order to identify improvement actions that could increase profit.
Advise on public finance: Advise public organisations such as governmental organisations on their financial operations and procedures, to ensure optimal efficiency.
Create a financial report: Finalise project accounting. Prepare an actual budget, compare the discrepancy between the planned and actual budget, and draw final conclusions.
Assess financial viability: Revise and analyse financial information and requirements of projects such as their budget appraisal, expected turnover, and risk assessment for determining the benefits and costs of the project. Assess if the agreement or project will redeem its investment, and whether the potential profit is worth the financial risk.

1211 – Finance managers

 

 

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References

1. Budget manager – ESCO