- Hi, I'm Roger Phillips CPA,
CGMA founder and chief creative officer here at UWorld.
Roger CPA review.
Now, today I want to address
one of the most common questions we get from potential,
and current CPA exam candidates, which is,
Hey, what can I do as a certified public accountant?
Great question!
So today I want to give a brief overview of what a career in
nonprofit looks like, including positions, compensation,
and what the benefits are of choosing this path.
Now, a CPA is a not for profit,
or nonprofit organizations provide the information
these institutions need to determine,
that the benefits and services they provide
don't exceed their revenues.
Right? We don't want the outflows to exceed the revenues
or the inflows. Then we've got a problem.
Now, whether a CPA is on the staff of a not-for-profit
organization or serves as an advisory capacity,
you can help the organization solve tax problems,
set up an internal control system, budget resources,
and prepare financial data for fundraising.
Now, staff positions at nonprofit organizations
vary depending on the size of the organization.
So for example, from years one through three,
we may have a staff financial accounting and
reporting position.
They basically work under the direction of a senior
accountant performing detailed work assignments in one,
or several of the following areas.
So they may be working in things like receivables, payables,
payroll, property, general ledger,
and preparing financial statements as well.
Another position might be a staff, internal auditor,
and that's again, years, one through three,
they work under the direction of the senior or manager in
conducting compliance audits and testing of internal
controls and their information systems as well.
Average salary starting there is about 44,000 per year.
Senior financial accounting and reporting for years three
through six, because now you're a senior.
They're going to supervise the work performed in areas
of receivables, payables, and financial reporting.
They may also be responsible for special reports,
and analyzing financial data.
A senior internal auditor, again, year three, through six,
they supervise the testing of internal controls,
accounting information systems.
They frequently conduct statistical sampling of document
approval, they perform special tests
to uncover a defalcation scheme,
and perform operational audits
for profit improvement recommendations.
Average salary there for three to six years,
internal audit about $91,000 a year.
Controller, they function as the chief accounting executive,
and they're responsible for organizing, directing
and controlling the work of the accounting personnel.
And they're going to be responsible for collecting,
summarizing and interpreting the financial data for the use
of management creditors investors,
and any kind of taxing authorities.
Now, as a member of top management,
the controller develops forecasts for proposed projects,
measures actual performance against operating plans
and standards, so what were the end results versus
what we thought we were going to get?
And they interpret those results
for all levels of management.
Again, average national salary here for the controller about
93,000 per year.
The CFO or the chief financial officer,
they're typically designated also as the vice president of
finance, the VP of finance,
and the CFO advises the president with the respect
of financial reporting, financial stability
and liquidity and financial growth.
Now the CFO may direct and supervise the work of the
controller, the treasurer,
and sometimes the internal auditing manager as well.
Other duties might include stuff like maintaining
relationships with financial institutions.
The average CFO salary starts at about $115,000 per year.
Now, what are some of the benefits of working in nonprofit?
Biggest one is marrying your passion with your skills.
Right? You have this passion to help people, help animals,
help schools.
You want to help something,
but you're working in accounting as well,
you can marry those two together.
Because of the fact that CPAs are in high demand
at nonprofit organizations, if you have a passion for
the environment, for animals, for education,
then you can combine your CPA skills to help make a
difference in a cause that you really believe in, right?
So whether it's a zoo or LACMA LA county museum of art,
which is a place I audited years ago, charities, schools,
and etcetera.
So you can put those passions you have together.
You can also aid in decision-making for major projects and
campaigns. Since the analysis of the work that we're doing,
the financial data that is required in order to make these
decisions that way it helps to launch major projects and
campaigns. You can play a vital role in this process,
and that makes an impact on the world for the better.
So your help with decision-making in this realm will aid in
the company's ability to spread awareness and grow.
And it also makes you feel good about what it is you're
doing every day at work.
Help nonprofits focus on their mission.
Financial issues, and jargon can leave many nonprofits
feeling overwhelmed, right?
Especially when it comes to accounting or bookkeeping.
Most people,
they don't understand accounting and bookkeeping, right?
So this means that valuable time and energy is spent trying
to sort out these finances instead of focusing on the
mission of the nonprofit.
Well, this can then detract from the original purpose
and the intention.
So now you, as the CPA are here to save the day,
because you can take over some of those things that may have
made them feel overwhelmed.
You also get to surround yourself with incredible people,
because a lot of the people that work or do nonprofit type
of work are there because they're passionate about the goal
and the purpose of the organization.
So you'll probably also feel strongly connected to the
co-workers, non-profit opportunities are highly competitive
and hiring managers are offered the best,
of the best candidates.
Now, again, this is just one of many satisfying career paths
that you can take as a certified public accountant.
Remember, while there are many different opportunities,
licenser can offer you.
Here's what they all have in common.
What is it? A higher salary, upward mobility, job stability.
And you're always in high demand.
Thanks for watching, And I hope you start,
or continue to pursue your career path as a CPA.