Career Definition for a Not-for-Profit Accountant
Not-for-profit accountants participate in responsible financial management of nonprofit organizations according to specialized financial rules that pertain to nonprofit organizations exclusively. According to the Bureau of Labor Statistics (BLS), most advocacy, grant-making and civic organizations, under which most nonprofits fall, are small organizations with less than two dozen employees. Not-for-profit accountants work with donors, vendors, agency staff, management and board members. Their responsibilities include monthly reconciliations like accounts payable and receivable, bank and investment accounts and expense accounts. They also oversee incoming donations, asset management and depreciation, grant management and reporting tasks. Not-for-profit accountants may participate in the development of financial policies and controls.
|Education||Bachelor's degree in accounting or finance|
|Job Skills||Attention to detail, communication, record keeping|
|Median Salary (2018)*||$70,500 for accountants and auditors|
|Job Growth (2016-2026)*||10% for accountants and auditors|
Source: *U.S. Bureau of Labor Statistics
Not-for-profit accountants hold a bachelor's degree in accounting or finance. Some nonprofit accounting jobs require CMA (Certified Management Accountant) or CPA (Certified Public Accountant) credentials, plus several years of related experience or a master's degree. Not-for-profit accountants may earn Certified Nonprofit Accounting Professional credentials through the Not-for-Profit Services Association. Not-for-profit accountants must study financial management and reporting, internal controls, IRS rules and regulations for nonprofit organizations, fiscal systems, budgeting and how to use accounting software.
Not-for-profit accountants must demonstrate attention to detail and good record-keeping skills to meet state and federal tax and nonprofit regulations. Not-for-profit accountants also need outstanding communication skills for working with front-line staff, management and board members, plus vendors, community donors and others.
Career and Economic Outlook
Accounting and auditing employment is predicted to grow 10% for the decade 2016-2026, according to the BLS. The BLS also reported in May 2018 that accountants and auditors made a median annual wage of $70,500.
Listed below are a couple of other options for careers in finance:
For those interested in creating the budget for an organization and making sure expenditures fit within the spending boundaries set, consider becoming a budget analyst. These professionals collaborate with management to come up with reasonable financial plans, approve and track spending, anticipate future financial needs, search for ways to make money go further and create detailed reports. A bachelor's degree in a field such as finance, accounting, statistics or public administration is necessary to work in this profession, but some private-sector employers will require a master's degree. The BLS projects a 7% increase in the number of job opportunities for budget analysts between 2016 and 2026. In 2018, 52,810 budget analysts worked in the U.S.; their median wages in 2018 were $76,220, according to the BLS.
If working in the accounting field is desired but accountant education requirements seem daunting, becoming an accounting clerk may be a better career move. Accounting clerks record the details of deposits and spending transactions, review numbers for accuracy, file receipts and reports, make sure bills are paid, watch activities in banking accounts and prepare checks for deposit. Because much training occurs on the job, accounting clerks only need a high school diploma to qualify for employment. Employment for all accounting, bookkeeping and auditing clerks is expected to shrink by 1% from 2016-2026, according to the BLS, and the 2018 median salary for these clerks was estimated to be $40,240.