Accounting Interview Questions and Answers
Accounting Interview Questions and AnswersThis section covers commonly asked and expert level Accounting Interview questions and answers. The types of questions covered are knowledge based, behavioral, situational and experience based. You can also find interesting examples with the questions, as required.
Who are these Accounting Interview Questions useful for?Conceptual and general questions will be very useful for graduates, beginners and junior level professionals interviewing for the role of staff accountant, junior accountant, senior accountant, general accountant, accounting, accounts assistant, accountant executive, accounts executive etc.
1. Why do you want to become an accountant?With this question, the interviewer would like to know why you want to pursue a career in accounting. While answering this question, talk about your goals, your motivation, and your skills. Being an accountant at times can be a boring and monotonous job. You would need to tell the interviewer what you love about this job.
While answering this question do not talk about your past. Something like: "I chose accounting as I had an accounting degree" is not the way to answer this question. It leaves an impression that since you were not left with any choices, you were forced to take up accounting.A better approach will be to focus on the future.
To answer this question impressively, you can say something like: "I always enjoyed working with numbers and developing tax strategies. I also have a keen interest in forecasting revenue projects. This job also gives me an opportunity to meet people with diverse range of backgrounds and there is a constant scope of learning along with stability."
2. How do you ensure that your finance report is accurate?The interviewers know that everyone makes mistake and no one is perfect. If you claim that you don't make mistakes, it's a strong signal that you are lying. A better thing to do is say that you are very cautious and are careful while preparing the financial reports.
A sample answer to this question can be something like: "I never do guesswork. If I am unsure of any calculation or financial record, I cross check with my colleagues and seniors. I thoroughly check my report as even a small mistake can cause the company very dearly.
I have made it a practice to check the report twice before sending it to the stakeholders and if it is something very important I ask my senior also to take a look".
3. Are you comfortable using accounting software?With this question, the interviewer is trying to understand if you are aware and have knowledge of the software the company uses. They would also like to gauge your willingness to learn. While answering this question, let the interviewer know that you are computer savvy and a quick learner.
A sample answer for this question can be something like: "In my current company I am using XYZ and ABC software. I am very comfortable using XYZ and have learned ABC currently.
I have the ability to work well with computers.However, if there's anything new that needs to be done to work here, I'll be happy to learn it quickly."
4. What skills are required to succeed in accounting?In order to have a successful accounting career you would need to possess the following skills:
i.) Organizational skills &Time management skills
iii.) Excellent communication skills
iv.) Honesty and integrity: They should be transparent while making decisions and should adhere to the ethical standards.
v.) Leadership skills: An accounts professional needs to have leadership skills and should act as a role model. They need to effectively delegate task and should have patience and confidence.
vi.) Business Knowledge: They need to have the ability to understand how accounting roles impact their business in the long run.
vii.) Technology Skills: An accounting professional is expected to have knowledge of few software programs. He/she should have good MS Excel knowledge.
viii.) Love for numbers & An eye for detail
5. What is the role and responsibility of an Accountant?Most of the accountants are expected to work with the accounting software used by the company and Microsoft Excel. He/she is expected to fulfill certain duties such as:
i.) Post proper journal entries.
ii.) Maintain and update the reports required by the management.
iii.) Checking and reconciliation of different ledgers.
iv.) Checking invoices and other documents required to prepare the invoice.
v.) Coordinating with the various teams for correct data.
vi.) Checking of the purchase order.
vii.) Dealing with the tax authorities.
6. What is a liability?The interviewer may ask questions to know how much do you know about the accounting terms and concepts. It is advisable that before going for the interview you prepare well so that you can answer these types of questions confidently.
A liability is an amount or service is an obligation and an opposite of asset. A liability includes accounts payable, short terms loans, interest payable, etc.
7. How important is the reconciliation of books in Accounting?As an accountant, you will know the importance of each book and task. Reconciliation of books is one of the most important tasks of an accountant. It is a process in which one compares two sets of records and analyzes the difference between the two. Both the sets of record should match each other.
Reconciliation of books helps to identify if there are any error entries, double entry or if an incorrect amount is posted in the books. It helps to identify if there is any fraud as it is easy to manipulate the records. It also ensures that the records are accurate and complete.
8. What is budgeting?Budgeting is a process which helps you identify your operating revenue and expenses for a future time period. You are expected to prepare detailed statements that are planned for a certain period of time. A budget helps to check if the organization is doing financially well.
A budget helps to check on the expenses and helps you to know where the expenses can be cut down.