Are you looking for Accountants questions? see below for Best Interview Questions For Accountants.
Accounting or accountancy is the measurement, processing, and communication of financial and non financial information about economic entitie such as businesses and corporations. Accounting is often referred to as “the language of business.” The modern field was established by the Benedikt Kotruljevic in 1458(Italian: Benedetto Cotrugli; 1416–1469) merchant, economist, scientist, diplomat and humanist from Dubrovnik (Croatia), and Italian mathematician Luca Pacioli in 1494. Accounting, which has been called the “language of business”, measures the results of an organization’s economic activities and conveys this information to a variety of users, including investors, creditors, management, and regulators.Practitioners of accounting are known as accountants. The terms “accounting” and “financial reporting” are often used as synonyms.
Even with an accounting degree , you need to pass an interview test to become an Accountant in practice. Understanding the nature of the questions to wait is very essential. Here we have compiled common questions and answers for accountants.
The competition in the field of accounting is increasing due to the high number of graduates in accounting and professional accountants. Submitting your resume for a preferred accounting position does not automatically grant you the job. On the contrary, to obtain an accounting job, you must acquire the necessary skills and prepare for the job interview.
Therefore, if you received an invitation for an interview for the position of Accountant, you certainly would not want to make it explode. Read on to learn the frequently asked questions of the accounting interview, how to answer the questions and make a good impression, possible answers and advice for the interview.
Nature of the accounting interview questions
As a business language and a central indicator of the growth of an organization, accounting is an important part of any organization. Therefore, when organizations want to employ an accountant, they usually hire someone who has good knowledge in the field.
Like any other interview, an accounting interview is a face-to-face conversation where the interviewer asks specific questions to the interviewee, who in turn answers them.
In general, the questions in the accounting interview differ among organizations; Some are industry specific. However, the accounting interview questions are generally a mixture of questions about accounting problems and their own accounting skills, as well as behavioral questions regarding soft skills, character and work habits.
Read on to know what to expect and how to make a good impression in an accounting interview.
What should I expect in an interview for accountants?
As stated earlier, the accounting interview questions can be a general combination, depending on the industry. However, due to well-defined technical skills and regulatory requirements, accounting interviews are usually very simple.
Therefore, as an accountant who prepares for the interview, the nature of the questions to expect is detailed below:
Accounting oriented questions
Basically, these questions should determine if the applicant’s skills and education match the job requirements. Here, the accounting interview questions should focus on the skills and training necessary for GAAP standards and the accounting requirements of the company.
Experience oriented questions
Here, the questions focus on previous work experience and problem solving skills. Basically, these questions should determine if the applicant is able to handle stress and decision making within the parameters of the job. In a situation where the applicant has little or no experience, hypothetical situations can be used.
Typically, career questions focus on the applicant’s career and educational objectives. These questions should determine if the applicant is the right person for the company in the long term. Here, the questions are simple because they work best when determining if the applicant will fit in the company.
How to make the best impression in an accounting interview
As important as anything, you will love to make a good impression on your interviewers. To do this, follow these strategies that have worked overtime:
Do not come after the stipulated time and dress well. You dress the way you want to be approached. Therefore, look at the position of Accountant and dress as such.
If possible, give them a hand (no sweaty palms, please!) And smile when you meet your interviewer. Also, during the interview, make eye contact, have a good posture and maintain a professional and enthusiastic attitude.
Your answers must be concrete; This is where you can practice the answers to some common questions that we will provide.
Sending a thank you is simply a courtesy. It is a courteous act and also serves to remind the interviewer of their qualifications.
Tips on how to conduct accounting interviews
Your impressive resume and cover letter are not enough evidence to give you the accounting job, hence the need for the interview. You must show that you are the right person for the position during the accounting interview.
Here are some tips to help you in the accounting interview:
# 1 Be prepared for questions: You should continue practicing your answers before the accounting interview. Also, check the job description again before the interview to find out what qualifications and skills you should focus on.
Preparing some examples and stories that demonstrate those skills and demonstrate your value as an employee will be helpful.
# 2 Do research: Have prior knowledge of the company and what they do before the interview. The more you know about the company, the more you can customize your responses in the interview.
In addition to searching for news about the company and browsing its website and social networks, you can also check the profile of your interviewer on LinkedIn.
# 3 Look organized: Accounting is a professional field; As such, you should look organized. Seeking to organize is an important skill for many roles, but in particular demand for accountants. On the day of the interview, bring several copies of your resume in an orderly portfolio and also make sure your interview attire is also particularly tidy.
# 4. Have questions ready for your interviewers : You can show your interviewers that you are interested in the accounting position and in the company preparing some questions for them. These questions may include:
Accounting interview questions and possible answers
Below are some frequently asked questions from the interview for Accountants and the approach to answer them.
# Question 1: What accounting applications are you familiar with?
What interviewers want to know: There are many applications, and no one could know them all. Basically, interviewers want to know if they know more than one application and know the tools of the profession. In addition to listing the ones you prefer (and why), you can also talk about recent developments in relevant software.
I am more familiar with the accounting software of ABC Company Name, as it is what I used day after day in my previous position. I have also used X and Y accounting applications in other roles. And, after a former co-worker recommended it, I recently started an online course on how to use the Z application for business.
# Question 2: Describe a time when you helped reduce costs in a previous accounting job.
What interviewers want to know: Basically, accountants should be able to reduce costs. This is an important reason why employers hire them. Describe a time when you used your innovation or personal diligence to reduce costs unexpectedly. Have the financial details of your success at hand in case your interviewer asks you to explain.
Often, unused licenses for software programs that charge a license fee (regardless of whether the licenses are in use or not) require a considerable amount of budget.
I led an audit of our software, spending time with each department to understand what programs and services were in use. Through the audit, we discovered that several departments had purchased programs that performed essentially the same task and that we were paying for more licenses than were being used.
Therefore, I did an analysis to discover that streamlining our programs could generate 15% savings in this area of the budget, and I presented my findings to the executive board.
# Question 3: What do you think is the biggest challenge facing the accounting profession today?
What interviewers want to know: There is no specific answer that is correct for this question. Rather, you should be able to demonstrate knowledge and commitment to your profession by having an intelligent and well thought out response. The interviewer wants to see that he is familiar with the industry and its challenges, and that he also cares enough about his work to have an opinion.
For example, recent changes in the tax code are a great challenge for the industry as we have to go through all the new rules and guidelines and adjust accordingly. Therefore, responding to the new tax laws is familiar to the accounting industry.
Another challenge for everyone in the field is technology. Easily available online accounting services can make the work of an experienced professional seem less essential, which means that, as accountants, we have to offer customers something that a computer cannot.
# Question 4: Describe a time when you faced a particularly demanding deadline to prepare a financial statement or report. How did you react to? Which it was the result?
What interviewers want to know: Time management is an important skill for accountants, who face multiple deadlines throughout the year. Here, they want me to share an example that shows how they handled the situation smoothly. Do your best to avoid overdoing it, which could be seen as un honest by your interviewer.
The most difficult deadline I can remember was preparing the year-end report for the fiscal year at ABC Industries because there is a lot of preparation work involved. In addition, there were many dependencies on the data of other team members in their departments.
However, the good news is that everyone knows how important it is to create and present the findings in this report. Therefore, my coworkers were very good at meeting the deadlines I set to deliver information (and also built some additional days of room for maneuver just in case).
# Question 5: Describe a time when you had to use numerical data or a graph to convince a manager.
What interviewers want to know: Discuss how the data or a chart or chart helped you present your case, and also how the result worked in favor of the organization.
For years, my company had turned to the same supplier to store paper products. However, despite the fact that it is increasingly moving away from paper and is directed to online communication every year, the overall price we paid increased.
My manager was reluctant to dissolve the relationship, because finding new suppliers can be difficult. I showed him a graph of the increase year after year, as well as researched alternatives and received offers for services, and showed him that we could save 40% on these costs. Seeing the data in the graph was tremendously persuasive.
# Question 6: Describe a time when you had to work exceptionally hard to provide excellent service to a client or client. What did you do and what was the result?
What interviewers want to know: Interviewers want to see how hard you are. In addition, they want to know how much they are willing to make an extra effort beyond the job description or 5 pm at the end of the day. Here, you can share information about what you did to provide service and how you achieved it.
A story really comes to mind here. In my role as an accountant for ABC Company, which provided services to small businesses, we had a new client who recently started a small business. His business was going well, but it was clear that accounting was not his favorite.
Therefore, it would have been easy to sell him a package that he could not use alone and enclose it in an annual subscription. On the contrary, I provided four training sessions on the software so that he could independently track his sales and expenses. Since then, he has recommended us to other small businesses that signed up for our services because of his praise.
# Question 7: Guide me through the three financial statements.
What interviewers want: Here, they want me to give you a brief explanation of the three financial statements.
# Question 8: If I only had one statement and I wanted to review the general status of a company, what statement would I use and why?
What interviewers want : They want to know if they really understand the purpose of each financial statement.
# Question 9: What happens in the income statement if the inventory increases by $ 10?
What interviewers want: They are still testing their understanding of financial statements.
Nothing; This is a trick question. The only impact of the inventory will be on the statement of financial position and the statement of cash flow.
# Question 10: What is working capital?
What interviewers want: Here, they want to test their basic accounting skills.
Basically, working capital is defined as current assets less current liabilities. However, in banking, working capital is usually defined more strictly as current assets (excluding cash) less current liabilities (excluding debt that accrues interest).
# Question 11: What does it mean to have negative working capital?
What interviewers want: Here, they want to test their basic accounting skills.
Negative working capital is common in some industries such as grocery retail and restaurant business. In the case of a grocery store, customers pay in advance, inventory moves relatively quickly, but suppliers often grant 30 (or more) days of credit. This means that the company receives cash from customers before needing cash to pay suppliers. Therefore, negative working capital is a sign of efficiency in businesses with low inventory and accounts receivable. However, in other industries, negative working capital may indicate that a company faces financial problems.
More questions and answers of the interview for the position of accountant
# Question 12. How many types of business transactions are in accounting?
There are two types of commercial transactions in accounting. They are income and capital transactions.
# Question 13. Explain real and nominal accounts with examples.
A real account is an asset and liability account. For example, land account, construction account, etc.
On the other hand, a nominal account is an income and expense account. For example, salary account, salary account.
# Question 14. Do you know the accounting standards?
According to Bill Driscoll, a senior district president for technology personnel services at Robert Half International, this question requires a two-part answer:
“First, be sure to share if you know accounting standards, such as the generally accepted Accounting Principles ( GAAP ) and Sarbanes-Oxley,” he says.
“Then, explain the depth of your knowledge, how it applies to the role you are requesting and how you stay updated with the changes and developments.”
# Question 15. Do you have experience doing / handling X, Y and Z?
According to Andy Hsu, director of corporate finance and accounting practice at Michael Page, avoid saying no, even if you don’t have one.
Instead, tell them how motivated you are to have the opportunity to learn X, Y and Z. Also, when the interviewers ask you to guide them through your resume, choose the achievements that relate to the job description. The message here should be that there is nothing you cannot do. “
Hsu suggests that it may be useful to have notes on hand about any relevant strength you have for the position. He also added that it is wiser to say that his experience is limited in XYZ , but you know ABC . Do not give interviewers a reason not to hire him.
If you are really interested in a role, your enthusiasm can compensate for some skill gaps. For example, if you don’t hit 10 of the 10 prerequisite skills or types of experience, but maybe you hit eight. Hsu also suggests that in the other two, find a way to highlight elements of your background that are tangentially related, to overcome the missing points.
# Question 16: What methods have you used to calculate bad debt?
Usually, this question can open a conversation about the ways in which you have approached this routine process with previous employers.
According to Driscoll, your answer may reveal the level of your understanding of the most used methods. You can also open a dialogue about how the company you are interviewing handles this.
As an accounting graduate or professional in the field, your resume will only take you to the door of a potential employer. However, his performance in the interview distinguishes him from other applicants. Therefore, taking the time to study the possible interview questions for the accountant position will help you prepare for your interview.
I hope that the questions and answers of the accounting interview, as well as the advice given above, will help you in your next job interview.
Good luck, a success!