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What is Non-profit Accounting?

Non-profit accountingNon-profit accounting is the practice of dealing with the finances and all of the monetary regulations that exist for non-profit organizations. From designing and implementing an accounting system to evaluating the financial transaction in an organization to ensure that they can accomplish their goals, a non-profit accountant plays an important role in organizations that are tax-exempt. If you have always dreamed of becoming an accountant and you do not want to work in the fierce underbelly of the corporate world, you may want to consider working in a non-profit environment where you can help the organization make a difference. Read on and learn more about roles in non-profit accounting and how to become a professional in this subset of the field.

What Are the Roles of a Non-profit Accountant?

Commercial firms that operate for-profit must meet very stringent requirements when reporting their income to the Federal government for tax purposes. While non-profits must also file and report their income, they do not need to meet these strict requirements. There is still a need for accounting professionals who prepare financial reports and review the financial statements to make recommendations on how to cover expenses and investments. In non-profit accounting, you can work as the expert in laws, accepted accounting principles, financial statements, revenues, expenses, investments, and measuring financial results. This is why there is a such a huge need for talented accountants in the non-profit sector.

How to Become a Non-profit Accountant

If you are looking for an opportunity in this field, you should take time to earn your degree to compete. To work as an accountant or a manager, you should possess a bachelor’s degree in accounting, business or finance. There are other paths that you can take to gain attention in the field. Be sure that whatever degree that you decide to earn prepares you for non-profit accounting by covering core areas of study that include: financial accounting, business management, non-profit law, business law, managerial accounting, microeconomics, and non-profit financial management. By completing each of these courses, you will develop the knowledge and skills that you need to succeed.

Demand and Salary in Non-profit Accounting

There are more than 1.4 million nonprofits registered with the Internal Revenue Service, according to Intuit. Since this number has grown so dramatically in the recent years, there is a high demand for talented accountants and accounting service providers who know the non-profit laws. All non-profits are required to generate monthly financial statements, and this fact adds to the demand.

If you are interested in finding a high demand area of accounting to work in, non-profit is the sector for you, because the supply is so low. In addition to a positive job outlook, the average salary in the field is $63,781 per year according to Payscale. If you have more than five years of experience, you may be able to earn a larger salary depending on your region.

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With the shrinking supply of accountants and the growing demand in the non-profit sector, non-profit accounting is a great career option for finance graduates who do not want to work for companies that work for their shareholders. Make sure to choose a reputable accredited program, learn the specialized rules in the sector, and prepare to become a skilled non-profit accounting professional.