Career Path 2 – Business, Government, and Not-for-Profits

CPAs in business, government, and not-for-profits (NFPs) find themselves on the front line – responsible for providing information for and making decisions that are critical to the organization’s success. While many CPAs begin in public accounting and then move to business, government, and NFP positions, the thriving market for accounting professionals is increasingly leading accounting graduates to start their career paths here. The growth of other credentials, e.g., CMA (Certified Management Accountant), has also provided an opportunity for accounting professionals to demonstrate their expertise.

The opportunities in business, government, and NFPs are so varied that it is difficult to sum them up in a few categories. Every organization – from the San Francisco 49ers football team to the Gates Foundation to the latest tech startup company – needs accountants in a multitude of roles. Here are just some of the choices available.

Financial accounting and reporting

These CPAs are responsible for producing the financial statements. To ensure that transactions are captured, recorded and reported properly, they may be involved in account analysis and systems design. They will work closely with the external auditors during the annual audit. The rapid spread of International Financial Reporting Standards (IFRS) outside the United States has created a demand for accountants who know both U.S. GAAP and IFRS.

Internal audit

Sarbanes-Oxley (SOX) expanded the role of internal auditors in public companies by requiring an increased focus on and verification of internal controls, a role usually assumed by internal audit. The SOX cascade effect then moved the internal control focus on to private companies and NFPs. Internal auditors review and evaluate operating systems for efficiency and effectiveness, propose improvements, and investigate fraud. They are increasingly taking on strategic roles, providing proactive advice and risk assessment related to planned initiatives.

Tax compliance

In smaller organizations, tax compliance may be one of many functions assumed by the controller or accounting manager. Keeping the organization on track with its required tax filings, ranging from employee and corporate taxes to informational returns, e.g., Form 990, is essential to the organization’s successful operation. In larger organizations, especially those with multistate and international operations, tax compliance can be a full-time job with increasing specialization possible.

Managerial accounting

Managerial accounting can encompass the many other functions performed by accountants, e.g., Accounts Payable, Accounts Receivable, Collections, Asset Management, Performance Evaluation, and Cost Accounting. While these functions can seem prosaic, they are integral to the organization’s decision-making processes. The information and analysis provided give management a clear look at the entity’s performance, good or bad, and what can be done to maintain or improve future performance. The accountants delivering this feedback are not cubicle jockeys – they need to know what is happening throughout the organization and in the broader business environment and have a detailed knowledge of the processes involved.

Cost accounting, in particular, is a high demand area with steady growth predicted. In today’s highly competitive global markets, you have to know what your product costs are. Cost accountants help their organizations improve manufacturing and distribution processes by systemically reviewing and analyzing associated costs.

Planning and budgeting

A well-prepared budget enables an organization to plan ahead and then measure current results against the plan to determine success. For small organizations, the creation of the annual budget may be a day-long effort based largely on prior year numbers. For large organizations, developing the budget numbers may involve hundreds of employees from throughout the organization. Forecast and budget analysts are needed to develop and evaluate budget estimates and to monitor actual results against the forecasted plan. The information keeps organizations on-track to achieve planned results as well as providing a heads up when problems are occurring.

Financial analysis and data analytics

This rapidly growing area is responding to the ever-expanding levels of Big Data. Organizations today have access to more information than ever before – information that could be invaluable if interpreted properly. The sheer volume of the available data, however, is overwhelming. Candidates with the ability to identify key trends, highlight emerging problems, and determine actions to be taken are in high demand. These positions require a combination of strong analytical and communication skills – to examine and evaluate the data and to effectively convey the results.

This plethora of choices and more are available to accounting professionals seeking careers in business, government, and NFPs – clearly, a world of opportunity awaits.