Thursday, November 24, 2022

How To Prepare For An Accounting Interview

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Q10 What Is The Difference Between A Trial Balance And A Balance Sheet

5 Entry-Level Accounting Interview Questions!

Ans. A trial balance is the list of all balances in a ledger account and is used to check the arithmetical accuracy in recording and posting. A balance sheet, on the other hand, is a statement that shows the assets, liabilities, and equity of a company and is used to ascertain its financial position on a particular date.

Why Are You Interested In This Company

As an accountant, there are a plethora of paths, fields, and organizations to choose from. Whether you want to work at a nonprofit, corporation, or university, you have quite a few choices. A recruiter will want to assess how committed and enthusiastic you are about joining this company in particular.

Q73 What Are Revenue Recognition And Matching Principles

Ans. Revenue Recognition Principle This principle suggests that the revenue should be recognized and recorded when it is realized and earned, no matter when the amount has been paid.

Matching Principle This principle dictates the companies to report an expense on its income statement the time the related revenues are earned. It is associated with the accrual basis of accounting.

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Describe A Time When You Had To Use Numerical Data Or A Graph To Convince A Manager

What They Want to Know: Discuss how data or a chart or graph helped you make your case, and how the outcome worked in the organizations favor.

For years, my company had been turning to the same vendor to stock paper products. Each yeardespite increasing moves away from paper, and toward online communicationthe overall price we paid went up. My manager was reluctant to dissolve the relationship, because finding new vendors can be hard. I showed a chart of the year-over-year increase, along with researching alternatives and getting bids for services, and showed her that we could be saving 40% on these costs. Seeing the data laid out was tremendously persuasive.

Where Do You See Yourself In Five Years

How To Prepare For An Accounting Job Interview

The employer wants to know whether you have any growth plans.

Tip #1: State where you would like to be in the next five years

Tip #2: Explain that you want to have gained more skills and experience

Sample Answer

I expect to handle more accounting roles and more complex challenges in the profession. Besides, I plan to further my accounting skills by enrolling in a short course. Also, this position will give me a chance to learn from the best and grow into a professional accountant within no time.

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Q117 Name Some Of The Enterprise Resource Planning Systems You Have Used

Ans. Small companies hardly use ERP systems. If your previous job was in one, you can be completely honest that you are willing to learn about ERP systems.

However, if you are experienced with Microsoft Dynamics GP or any other Enterprise Resource Planning system, mention how you were using it. This will help your employer understand how much more you need to know about them.

Eight Things To Do At Your Accountancy Interview

  • Smile and give a nice firm handshake with direct eye contact as soon as you are introduced to your interviewer â first impressions count!
  • Demonstrate a genuine interest in the graduate scheme to which you are applying, drawing on activities you have been involved in .
  • Keep your focus. A good academic record is only a starting point â itâs also important to show you have a convincing motivation to join the accountancy sector. A lot of time, money and effort will be invested in your training, so recruiters want to feel youâll stick at it. Talk enthusiastically about the reasons you wish to pursue the job on offer. Show an interest in world events and their effect on the financial world.
  • Donât argue with recruiters, but do ask for clarification if you do not understand a question.
  • Make a connection between the skills youâve gained from your work experience and the job of being an accountant. Donât dismiss a job because it had nothing specifically to do with accountancy. Instead, pull out the skills you gained from it. Working behind a bar, for example, can develop your communication and numeracy skills, and experience of team work…
  • Show you really know what accountancy is. Recruiters donât expect in-depth knowledge, but a good grasp of the basics will help you and impress them. For example, itâs great if a would-be auditor can show they understand that theyâll be working with different businesses and that communication skills will be essential.
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    How Do You Maintain Accuracy

    All it takes is a minor slip-up to cost a company a fortune. Candidates must have a dedication to accuracy, possess the ability to recognise and address errors, and have a detail-oriented mentality.

    For example, you can say that you use every resource and tool thats available to check your work and reduce the risk of an error slipping through the net. At a previous job, employees used software to track receipts when they took business trips. You compared the real-time reports to credit card statements to ensure the numbers matched. When errors occur, you deal with them as soon as possible to reduce the damage.

    Q102 Why Do You Want To Join This Company

    How To Prepare For An Accounting Job Interview

    Ans. Interviewers want to know that youre genuinely interested in working for their organization. To give a thorough answer, research the companys website to learn more about its goals, mission, and work environment. Choose one or two things that you like the most and explain why they make you want to work for the company.

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    What Do You Think Makes Up A Typical Day As An Accounting Assistant

    What tasks do you think your duties will look like at your new job?

    Tip #1: State the responsibilities performed by an accountant assistant

    Tip #2: Show that you know your duties

    Sample Answer

    As an accounting assistant, I assist accountants with their work. I go over documentation to ensure that they are error-free. I also respond to email correspondence and aid with anything else an accountant may need to do their work.

    Q84 What Do You Mean By Amortization And Also Mention Its Journal Entry

    Ans. Amortization is an accounting concept that is used to gradually write off the cost. Through amortization, over a period of time, one can allocate the cost of any intangible asset. Also, it can be done to repay any loan principal. However, those assets which have an indefinite life like Goodwill can not be amortized.

    Below is the journal entry for amortization:

    Debit
    Accumulated amortization xxx

    The concept of amortization in accounting is different from depreciation. The major point of difference between amortization and depreciation is their usage. Amortization works for intangible assets whereas depreciation works for tangible assets. Also, unlike depreciation, amortization has no salvage value. Another key difference between both is that depreciation can be implemented using both the straight-line method and accelerated method but amortization is implemented through the straight-line method.

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    What Motivates You The Most In Work

    Clerical and administrative jobs are often routine, and they can get boring quickly. Many things can help you to avoid a crisis of motivation, however.

    You can say that you enjoy being a part of a diverse and hardworking team , and feel responsible, not wanting to let your colleagues down. This attitude motivates you to try hard, even when the job is repetitive.

    Another idea is referring to your goalsboth private and professional. You surely want to achieve something in life, and a position of an accounts assistant is not your final destination. Unless you work hard , you wont move up the career ladder.

    Or perhaps you have a family or someone you love and want to provide for. Also that wont be possible unless you have a good and secure job. To summarize it, your goals help you to stay motivated.

    Accounting Manager Interview Questions: Skills Ethics

    How To Prepare For Accounts Job

    When you have to hire a new employee, you know that the interview process is often the most important part. It is where you get to meet your candidates, and get a feel of who they are. An unstructured interview process can throw off the whole hiring process and lead to the wrong hire being brought on. In order to avoid this, we advise coming up with a set interview structure. This involves coming up with your questions for candidates beforehand.

    To help you prepare, below weve included our favorite accounting manager interview questions.

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    Have You Ever Developed Your Own Accounting Process

    This is a yes or no question, but you should elaborate. If you answer “no,” discuss a process you helped develop or change in a previous role to demonstrate your innovative skills. If you answer “yes,” be ready to give the details of the process you created and how it helped the company. Use numbers to measure your impact, if possible.

    Example:”When I was working as an accounting manager at XYZ Company, I noticed we were consistently missing late fee payments simply because we were running too far behind to apply them on time. Even if a client was over 30 days late on an invoice, we still had not applied a late fee.

    I assembled a team to see how we could address this issue. We decided to make the switch to FreshBooks, which gave us the ability to automate late fees on our invoices. This not only increased our revenue by 1% but also improved cash flow because clients became more willing to pay their invoices on time.”

    Q94 What Is The Accounting Information System

    Ans. This is a frequently asked accounting interview question thus you should know everything about AIS.

    AIS is a computer-based method used for tracking accounting activity and involves collecting, storing, processing, organizing, and summarizing accounting data and transactions. It also helps in cumulating financial transactions and essential financial reports, which helps stakeholders in decision making. Using AIS for storing and processing financial data helps in the following tasks:

    • Measure the financial performance
    • Evaluate the finances of the company and compare it with the previous period to draw a conclusion
    • Avoid any miss-handling of data
    • Connects Information Technology with GAAP principles

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    How Do You Minimize The Risk For Errors In Your Work

    Hey, no one is perfect but when it comes to accounting & finance, perfection in numbers is expected. Here, your interviewer isnt looking for some superhuman form of error free workmanship. What theyre looking for here is some sort of system of checks and balances.

    Answer Sample:

    Rain or shine, I always make sure that x is reviewed 3 times over and referenced against y before it goes out the door

    Describe The Advantages And Disadvantages Of Different Accounting Packages You Have Used In Your Most Recent Accountant Jobs

    7 Tips to NAIL Your Accounting Job Interview!

    What They Want to Know: Be prepared to share specific examples of the pros and cons of the accounting software youve used. Your response will show interviewers your knowledge as well as your critical thinking and assessment skills.

    I found the usabilityand priceof ABC Accounting appealing. I was, however, I bit frustrated by some of the missing functionality, which comes standard with other popular packages like XYZ and XXX.

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    Practice These 10 Questions Before Your Interview

    If you get confident answering the 10 interview questions for accountants above, youll get more job offers and make a better impression in your interviews.

    Make sure you practice your answers to each question before the interview, though. Nothing comes out perfect the first time so reading through this once and then moving on wont get you hired.

    Practicing will help you sound more confident and help you identify the areas you struggle to talk about BEFORE the interview, so you can fix them. This is how to ensure your interviews go well identify weaknesses and practice them before the big moment.

    Can You Give Examples Of When Youve Helped A Team Be Successful

    Dont be fooled by this question they arent asking for an example of when you have led a team so they arent necessarily asking you to demonstrate leadership qualities. As an accountant, you will need to work with various different teams, so try and talk about a time when you have supported or had a positive influence within a group. Mention how the team improved due to your efforts, and try to reference skills of resilience, co-operation and professionalism.

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    Q104 Share A Stressful Situation That You Have Been A Part Of And How You Have Handled The Situation

    Ans. In the field of accounting and finance, you are constantly under pressure. Its not a job to be taken lightly, which is why interviewers ask such basic accounting interview questions, just to assess your composure in times of stress. Be careful to bring up a really stressful situation and dont worry about the work pressure they have faced on a day-to-day basis, as no one wants to hire someone who cant handle work pressure.

    Also, be realistic about the stressful situation you mention. You shouldnt sound fake. The situation can be one of employee fraud, massive damage to the company due to natural calamities, scrutiny of the income tax of years when you were not even part of the organization, etc.

    Q5 Give A Suggestion To Improve The Companys Working Capital Flow

    Top interview tips for accounting jobs

    Ans. In my opinion, the stock on hand can be the key to improving the working capital of the company. Of all the components of working capital, the stock is something we can control. We can pressure our debtors to pay us instantly, but we cannot have direct control over them because they are separate legal entities and, in the end, they are the ones who give us business.

    We may tend to delay payments from our suppliers, but it ruins business relationships and hinders goodwill in the industry. Also, if we delay payments, they may not supply goods in the future. Maintaining liquidity in the form of funds in the bank can help the flow of working capital, but it comes at an opportunity cost.

    With all of this in mind, I personally believe that inventory management can be of great help in improving the working capital of the company. Over-stock should be avoided and stock turnover rates should be high.

    This answer is generic. There are industries that work with negative working capital, such as electronic commerce, telecommunications, etc. So do some research on working capital before answering.

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    Describe How You Can Solve A Conflict At Work

    At workplaces, people have conflicts from time to time. Your employer would like to know whether you can solve the differences amicably.

    Tip #1: State skills that can help you make peace at a workplace

    Tip #2: Prove that you can resolve conflict at work

    Sample Answer

    I once had my colleagues argue over a project. I had to come in and listen to both sides. Each one had valid concerns that needed an ear. Good listening skills and the ability to listen to the opposing side without taking a stand made it easy to resolve the conflict. After that, each party must agree to implement our agreement.

    Putting It All Together

    Ultimately, landing an accountant interview is exciting, but its also okay to be a bit nervous about whats to come. A new job usually means taking a step forward in your career, and that can put a lot of pressure on the interview. But, by making use of the tips above and reviewing the accounting interview questions, you can be ready. Youll have a strategy that showcases you as the perfect candidate, allowing you to demonstrate to the hiring manager why youll be a great addition to their team.

    As always, good luck!

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    Four Things To Do Leading Up To Your Accounting Interview

  • Once youâve been invited to interview, reply by phone or email within a couple of days. If youâre unsure about what to expect you can contact the recruitment team to ask a few questions. However, make sure you have gone through the website thoroughly before you call.
  • Read our article on doing your research . Youâve probably done a fair amount already, which is why youâve been selected for interview, but there may be some extra tips for you.
  • Prepare a variety of examples of where you have shown certain skills and competencies â from different areas of your life, not just academia.
  • Accountancy firms decide on their selection criteria and use interviews to examine whether you meet them. Work out the criteria and think about those obvious but tricky questions that are bound to come up, but avoid sounding as if you have rehearsed your answers.
  • Q91 What Do You Mean By Days Payable Outstanding

    TOP 20 ACCOUNTANT Interview Questions And Answers!

    Ans. DPO or Days Payable Outstanding refers to the average number of days which ideally a company takes to clear its credit purchase in regards to the outstanding suppliers. Most of the time, DPO is a monthly task for a business, however, each month the day of clearing the outstanding payment might differ, hence the average is taken out to estimate the payment period.

    Below is the formula for calculating DPO:

    Closing accounts payable / Purchase per day

    X Number of days

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    What Procedures Do You Use To Avoid Making Errors

    Accounting clerks must be accurate in their calculations. Maintaining correct accounting is vital for the business and the customer. Hiring managers ask questions like this one to see how you handle checking and cross-checking your work to ensure it’s correct to save valuable time and money.

    Example:”I want to avoid errors at every stage in the accounting process as much as possible. To do so, I stop after every 10 or so entries to cross-check figures and ensure the original numbers I put in are correct. Once I’ve input all the numbers, I add everything twice. When possible, I use formulas in spreadsheet software to check my work to make sure it’s all accurate.”

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