- How do I prepare for an accounting interview?
- 1. Research the job and the company
- 2. Prepare your script
- 3. Practice as much as possible
- What are some of the accounting interview questions?
- 1. How many types of accountants are there?
- 2. How do you manage projects with tight deadlines?
- 3. What is the difference between capital and revenue expenditure?
- 4. Which accounting software solutions are you familiar with?
- 5. What does the term ‘working capital’ mean?
- 6. How do you organize your daily workload?
- 7. What are the different types of financial statements?
- Key takeaways
Accounting is an interesting yet specialized profession. It requires the use of technical and non-technical skills in handling a company's finances. Although accounting interview questions will vary among employers, there are some common ones. Read this article for tips on answering possible questions so you can be better prepared for an interview.
Are you an accountant nervous about your upcoming job interview? We’re here to help! Accountants play a crucial role in keeping track of a company’s finances and facilitating high-level decision-making. When hiring accountants, organizations typically look for experienced and detail-oriented individuals with in-depth understanding of various financial concepts. For this reason, accounting interview questions include a blend of technical and non-technical questions.
If you’re preparing for a job interview for an accountant role, we’ve got you covered. In this blog post, we’ll discuss:
How to prepare for an accountant interview
Seven frequently asked accounting interview questions
How do I prepare for an accounting interview?
If you’re applying for an accountant role, you can expect to hear questions about your technical skills and soft skills. Here are a three tips on preparing for this type of interview:
1. Research the job and the company
Find out more about the company and the job role you’re applying for. This type of research will not only get you ready for the interview, but it will help you prepare the right questions for the interviewer. Also, your research can help you identify some of the key areas of discussion during your interview, such as the company winning a recent award or implementing a new accounting system.
2. Prepare your script
Take notes of your research and prepare for all types of questions. Have your answers ready on a notepad or computer file. If the interview is online, keep the file somewhere close so that you can refer to it. However, do not make it obvious to the interviewer!
3. Practice as much as possible
As the saying goes, practice makes perfect. Practicing your response to common accounting interview questions can help you feel comfortable during the interview and steer the conversation in a positive direction.
What are some of the accounting interview questions?
While accounting interview questions are likely to vary from one company to another, there are a couple of questions common among most organizations. Here are seven technical and non-technical accounting interview questions and answers:
1. How many types of accountants are there?
This question is designed to test your knowledge on the different types of accountants, and it also closely relates to the job role you’re applying for. Since accounting is a specialized field, there could be several types of accountants, so you’re not expected to list all of them. Here’s how you could answer:
There are two main types of accountants: financial accountants and management accountants. Financial accountants are primarily responsible for preparing and reviewing a company’s financial statements and ensuring those documents provide a true and fair view of the company to all internal and external stakeholders. Management accountants, on the other hand, prepare the information necessary for managers to make decisions. This could be budget reports, variance analysis, and cost reports.
2. How do you manage projects with tight deadlines?
Accountants often have to work on tight deadlines, especially during a company’s fiscal year-end. Your response to this type of question will provide the interviewer an insight into your time management skill, which is crucial for accountants. Consider using the STAR interview method to answer this type of question. You could say something like:
Once I was assigned to lead a project to review all of a company's financial statements within a week. I first prioritized tasks and identified critical steps, then delegated certain tasks to my team. I ensured there was continuous monitoring of each step, and also identified potential risks and mitigation plans. As a result of these actions, we were able to successfully complete the project ahead of the deadline, and our client was extremely satisfied.
3. What is the difference between capital and revenue expenditure?
Your interviewer might test your knowledge on situations where a purchase needs to be recorded as an expense or capitalized. Knowing the difference between these two types of expenditures is important because, as an accountant, you must ensure all income and expenses are properly recorded. For example, you might say:
A purchase will be considered a revenue expenditure if the company will not reap the benefits of this purchase for a long period of time, such as staff salaries, printing costs, and administrative costs. However, if a company is purchasing a new machinery, patent, or equipment which is expected to provide benefits for a long period of time (ideally, more than one year), then it must be recorded as a capital expenditure.
4. Which accounting software solutions are you familiar with?
As an accountant, you’ve probably worked with different accounting software programs, and your employer probably wants to know about it. If the employer uses a particular software you’re not familiar with, don’t panic. There’s a way you can phrase your response to showcase your transferable skills, as you’ll see in the following example:
I have worked with QuickBooks, and I’m quite proficient at it, as well as several other accounting programs. I have not worked with SAP Oracle and I see that’s what you use, but I have theoretical knowledge about the software and how it works. I recently completed an online course on how to use this software. Since I’m a fast learner, I should be able to easily become proficient in this software, and I’m looking forward to becoming an expert.
5. What does the term ‘working capital’ mean?
You have probably heard the term ‘working capital’ either in your accounting course or during your employment. It’s important to not only understand this concept but explain it to an interviewer. After all, working capital is a good indication of a company’s financial stability. Here’s how you might answer:
Working capital refers to the cash and cash equivalents a company possesses to meet its short-term debts and obligations. It is calculated by deducting a company’s current liabilities from its current assets. Typically, a company with a high working capital is considered to be in a good spot to be able to pay off its short-term debts. However, this figure does not necessarily mean that the company is in good financial health and has nothing to worry about.
6. How do you organize your daily workload?
One of the hallmarks of a successful accountant is the ability to organize their workload so that they don’t miss out on any crucial tasks. The interviewer would want to know what you do to stay ahead. Additionally, they probably want to check if you fully understand the importance of staying organized. One way to respond would be:
I maintain different databases to keep track of my work on a daily basis. I divide my day into three phases. The first phase involves working closely with clients. The second phase is getting some accounting work done, and the third phase is all about delegating work to my team members. I have different spreadsheets to keep track of these phases, which I’ve shared with my supervisor. We also have a weekly check-in meeting to review progress.
7. What are the different types of financial statements?
Different accounting standards have different definitions of what constitutes financial statements. However, almost all of them are unanimous on three main types of financial statements. As an accountant, you’re expected to know what they are and how to prepare them. You could say something like this:
There are three main types of financial statements. The first is the statement of financial performance, also known as income statement or profit and loss statement, which shows the company’s revenue, operating expenses, gross profit, other expenses, taxes, and net profit. The second statement is the statement of financial position, also known as balance sheet, which contains the company’s assets, liabilities, and equity. Finally, there’s the cash flow statement that shows all the cash inflow and outflow occurring in the company during a given period.
Do you have an upcoming job interview? Get in touch with us today about our interview prep services and let us help you land your dream job.
Key takeaways
Accounting interview questions typically consist of technical and non-technical queries.
When preparing for an accounting interview, make sure to brush up on your technical knowledge.
Like all other job interviews, an accounting job interview requires a lot of practice.
