1. Accountant

Accountants are probably the first individuals you think of when considering who will manage your organization’s finances. These professionals focus primarily on financial analysis and reporting, so their main duties include:

• Reviewing transactions so that everything is correctly formatted and balanced in your accounting system.
• Performing bank reconciliations to check that your internal records match your account statements.
• Analyzing budgets and providing recommendations to guide your spending and revenue generation.
• Preparing for audits by helping you find the right external auditor, compiling required documents, and cleaning up your data for more accurate results.
• Creating financial statements that organize and summarize key information to allow for more effective internal decision-making and greater external transparency.
• Filing tax forms, including IRS Form 990 to help your nonprofit maintain its 501(c)(3) status, W-2s and 1099s to ensure your organization does its due diligence as an employer, and any additional returns your state government requires.

Large nonprofits often need to hire a full-time accountant to take care of these tasks, while small to mid-sized organizations tend to benefit from outsourcing these duties to an accounting firm. Whichever route you choose, ensure your accountant has their CPA certification, at least a bachelor’s degree in accounting or a related field, and experience in the nonprofit sector that will inform their work with you.

2. Bookkeeper

As NPOInfo’s guide to nonprofit data collection explains, “Financial data allows nonprofits to assess cash flow, maintain financial stability, and strategize budgets for future fundraising efforts.” The person responsible for collecting and recording this information, along with several other day-to-day financial tasks, should be your organization’s bookkeeper. Their duties generally include:

• Entering basic data into your nonprofit’s accounting system, which your accountant will later review and report on.
• Writing checks for recurring expenses (rent, utility bills, etc.) and getting leadership approval for larger purchases as needed.
• Making bank deposits and checking that electronic transactions are automatically transferred to your nonprofit’s bank account.
• Managing invoices from vendors your organization works with and any you need to create for services you provide.
• Processing payroll, although some nonprofits give this responsibility to their human resources professionals instead.

Like with the accountant role, large organizations often have to hire a bookkeeper, while mid-sized organizations tend to outsource, and small nonprofits may just give this role to an existing staff member or trusted volunteer. While bookkeepers don’t need specialized certifications or education, they do need a basic understanding of nonprofit finances and some on-the-job training to perform well in their roles.

3. Treasurer

Your treasurer is the financial expert on your nonprofit’s board of directors, so this role’s function is to provide financial oversight. Associated responsibilities include:

• Approving various financial documents and decisions, from completed budgets to accounting software purchases to your final choice of an external auditor.
• Helping your organization manage risks by strategizing prevention and mitigation methods and providing direction for implementing them.
• Creating monthly or annual treasurer reports to help the rest of the board, your staff, and outside stakeholders understand your current financial situation.

Your treasurer is essentially the financial liaison between your board and staff and between your organization and the community. They should be present in all board meetings and training sessions to present financial analyses, budgeting sessions to have input on financial goals and progress assessment, and conversations with potential major donors and funders who want to know more about your nonprofit’s financial situation before they contribute.

4. Chief Financial Officer (CFO)

Your CFO is the financial professional who works most closely with your nonprofit’s executive leaders, so their main focus area is financial strategy. Some responsibilities that fall under that umbrella include:

• Leading the budget creation process with input from the rest of your financial team and other essential professionals (program directors, fundraising team leads, etc.).
• Forecasting cash flow not only during budgeting, but also throughout the year to keep your organization on track and help it navigate any unexpected challenges that arise.
• Managing grants to ensure your nonprofit complies with grantmakers’ requirements and makes the most of these critical funding sources.
• Developing fiscal policies that govern your team’s daily handling of funds and cover areas like gift acceptance, expense reimbursement, and staff compensation.
• Setting financial goals as your organization creates strategic plans and launches new initiatives for its mission.

Although many organizations hire executive leaders for this position, there is also an outsourcing option for it, known as fractional CFO services. According to Jitasa, working with a fractional CFO gives your nonprofit access to all of the expertise of a full-time CFO on a part-time basis, saving you time and money on hiring and ensuring scalability as your organization grows.

5. Controller

The position of a nonprofit controller essentially combines the functions of an accountant and CFO. At small to mid-sized organizations, controllers spend some of their time on strategic tasks and some on analysis and reporting. Large nonprofits sometimes have a controller who leads a committee of financial associates and delegates these responsibilities among them.

However their position works logistically, controllers tend to prioritize efficiency and compliance in their work. Keep this in mind when deciding how you want to structure your nonprofit’s financial team. If those are also your priorities, the controller route might be for you, but if you’re more focused on effective decision-making and ensuring your finances support your strategic plan, you may want to hire an accountant and CFO.

In addition to hiring financial professionals with relevant experience and the right skills to complete their responsibilities effectively, try to find candidates who are passionate about your nonprofit’s mission. When they care as much as the rest of your staff do about making a difference for your particular cause, they’ll be more motivated to perform their duties to the best of their ability and consistently act in your organization’s best interest.