What are the key skills and competencies for a nonprofit management accountant?

1 Financial reporting and analysis

Nonprofit management accountants need to be proficient in preparing and interpreting financial statements, budgets, forecasts, and reports that comply with generally accepted accounting principles (GAAP), nonprofit accounting standards (NFPAS), and donor and grant requirements. They also need to be able to analyze and communicate the financial performance, position, and sustainability of the organization, as well as identify and address any issues or risks. Nonprofit management accountants should be familiar with various accounting software and tools, such as QuickBooks, Excel, and Tableau, that can help them streamline and automate their financial reporting and analysis processes.

2 Regulatory and ethical compliance

Nonprofit management accountants need to be aware of and adhere to the relevant laws, regulations, policies, and codes of conduct that apply to their organization and sector. They need to ensure that the organization complies with tax, audit, and reporting obligations, as well as follows the best practices and standards of accountability, transparency, and stewardship. Nonprofit management accountants should also uphold the highest ethical values and principles, such as integrity, objectivity, confidentiality, and professionalism, and act in the best interest of the organization and its stakeholders.

3 Strategic planning and decision support

Nonprofit management accountants need to be able to contribute to the strategic planning and decision-making process of the organization, by providing relevant and reliable financial information, insights, and recommendations. They need to understand the mission, vision, goals, and objectives of the organization, as well as the external and internal factors that affect its performance and sustainability. Nonprofit management accountants should also be able to evaluate the financial feasibility, impact, and risk of various initiatives, projects, and programs, and advise the management and board on the optimal allocation of resources and investments.

4 Performance measurement and evaluation

Nonprofit management accountants need to be able to measure and evaluate the performance of the organization, its programs, and its staff, using appropriate indicators, metrics, and tools. They need to be able to design and implement effective performance management systems, such as balanced scorecards, dashboards, and key performance indicators (KPIs), that align with the organization's strategy, mission, and values. Nonprofit management accountants should also be able to monitor and report on the progress, outcomes, and impact of the organization's activities, as well as provide feedback and suggestions for improvement.

5 Stakeholder engagement and communication

Nonprofit management accountants need to be able to engage and communicate with various stakeholders, such as donors, funders, auditors, regulators, board members, managers, staff, volunteers, beneficiaries, and partners. They need to be able to build trust and rapport, understand and meet their expectations and needs, and deliver clear and concise financial information and messages. Nonprofit management accountants should also be able to collaborate and cooperate with other departments and teams within the organization, as well as external parties, to achieve shared goals and objectives.

6 Continuous learning and development

Nonprofit management accounting is a dynamic and evolving field that requires constant learning and development. Nonprofit management accountants need to be able to keep up with the changes and trends in the accounting profession, the nonprofit sector, and the broader environment. They need to be able to update their knowledge and skills, acquire new competencies, and adapt to new challenges and opportunities. Nonprofit management accountants should also be open to feedback, seek mentorship and guidance, and pursue professional certifications and qualifications, such as the Certified Nonprofit Accounting Professional (CNAP) or the Chartered Global Management Accountant (CGMA).

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?