How To Answer Accounting Interview Questions
As you can see, accounting interview questions are generally a mix of questions about accounting issues and your own accounting skills, plus behavioral questions regarding soft skills, character, and work habits.
You should never try to present a false front during a job interview because, among other issues, your interviewer might notice and decide that your lack of candor is a red flag for deeper problems.
However, you can increase your chances of interviewing well and getting hired by practicing some typical job interview questions, as well as the common questions for accountants listed above.
For the most success, use examples from your career in your responses and keep your answers well organized. You want to tell a story that’s compelling and fact-based, but dont delve too deeply into nitty-gritty details.
Accounts Payable Interview Questions And Answers
The account is an interesting topic but the accounts payable interview questions and answers might be hard. We have brought to you an easy way to prepare for the interview by these Top 30 Accounts Payable Interview Questions & Answers. This may help you crack an interview easily and confidently. The following questions contain types like accounting interview questions, accounts payable processor, accounts payable specialist questions.
How Much Over Or Under Payment An Employee Is Allowed To Process This Is Defined Both In Absolute Values And In Percentages Besides Defining The Above Two At The Company Code Level You Will Also Define Similar Tolerances For Customer/vendor Tolerance Group Once Defined Each Of The Customers Is Assigned To One Of These Groups Here Also You Define The Permitted Payment Differences: While Processing The System Compares The Tolerance Of An Employee Against The Customer Tolerance And Applies The Most Restrictive Of The Twoq6 What Is Dual Control In Master Records
Ans: Dual Control helps to prevent unauthorized changes to the important and sensitive fields in the master records in the system. Consider, for example, a sensitive field such as payment block in a vendor master record. When a user changes this fields content, the system requires another user to approve this change and an audit trail is maintained of all such changes. Unless ‘ the change is approved, in this example, this particular master is blocked by the system for considering the same in the next payment run.
Open table as spreadsheet Activity Customer VendorDisplay changes FD04 FK04Display changes XD04 XK04Confirm changes, individually FD08 FK08Confirm changes, in a list FD09 FK09
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Accounts Payable Interview Questions
Accounts payable is more important than ever in the modern marketplace. Businesses who want to compete effectively while keeping costs low and value creation high need to assemble strong teams with not just accounting acumen, but a grasp of existing and emerging technologies.
Building these teams begins with job interviews for accounts payable clerks and specialists. With the right accounts payable interview questions, you can identify job seekers with the skills and experience necessary to optimize your AP function for maximum value, accuracy, and efficiency.
Describe A Time When You Faced A Particularly Demanding Deadline To Prepare A Financial Statement Or Report How Did You React What Was The Result
What They Want to Know: Time management is an essential skill for accountants, who deal with multiple deadlines throughout the year. Share an example that shows how you smoothly handled the situation. Avoid exaggerating, which could be seen as less than honest by your interviewer.
The most difficult deadline I can remember was preparing the year-end FY report at ABC Industries because there is so much prep work involved, and there are many dependencies on other team members providing data from their departments. The good news is that everyone knows how important it is to create and present the findings in this report. My co-workers were really good at sticking to the deadlines I established for turning in information .
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Describe A Time When You Had To Work Exceptionally Hard To Provide Great Service To A Customer Or Client What Did You Do And What Was The Outcome
What They Want to Know: Interviewers want to seethat you’re a hard worker, and willing to go the extra mile beyond the job description or the 5 p.m. end of the day. Share information on what you did to provide service and how you accomplished it.
One story really comes to mind herein my role as an accountant for ABC Company, which served small businesses, we had a new client come through who’d recently started a small business. His business was doing well, but it was clear that bookkeeping was not his favorite. It would have been easy to sell him a package he couldn’t use on his own, and lock him into an annual subscription. Instead, I provided four training sessions on the software so he could independently track his sales and expenses. Since then, he’s recommended us to other small businesses that signed on to our services because of his praise.
What Does An Accounts Payable Clerk Do
An accounts payable clerk has many duties as a part of their job. Your role as an accounts payable clerk is to verify and reconcile invoices for a company or organization. Your training would concern all aspects of invoice management from first receiving the invoices to processing the invoices. Some responsibilities you may have as an accounts payable clerk are:
Verifying the accuracy of invoices
Inputting the invoices into a computer system
Paying company bills monthly, weekly or daily
Maintaining a list of all the vendors a company uses for business
Keeping record of what the company owes to the vendors and what vendors owe to the company
Printing monthly financial statements
Reporting sales taxes on paid invoices
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What Is A Trade Discount What Is Its Benefit
A trade discount is a discount or a reduction in price, which a manufacturer or wholesaler gives a retailer/ wholesaler when they buy a product or group of products. In other words, we can say that a trade discount is a certain percentage a manufacturer is willing to cut or reduce its list price for wholesalers or retailers. The manufacturer gives the manufacturer to the retailer based on the volume of goods such as 20% to 40% discount.
The main benefit of trade discounts is attracting more customers and receiving the order in bulk, which ultimately increases the number of sales. Therefore, trade discount usually varies with the quantity of the product purchased.
Q18 How Can Reason Codes Help With Incoming Payment Processing
Ans: Reason Codes configured in the system help to handle the payment differences of individual open items in an invoice . To each of the reason codes, you will define the posting rules and the GL accounts in the IMG. Once done, when there is a payment difference against a particular open item, the system looks for the reason code:
- When the charge-off indicator has been set for that reason code, then the system posts the payment difference to a GL account. When this indicator is not set, then a new open item is created for the payment difference.
- When disputed item indicator has been set, then the system ignores these line items when counting for the customers credit limit.
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What Is The Difference Between Debenture Holder And Preference Shareholder
Following is a list of significant differences between debenture holders and preference shareholders:
Debenture Holder Preference Shareholder A person having the debentures is called a debenture holder. A person holding the shares is called a preference shareholder. A shareholder could be considered as a partial owner of the company. A debenture holder needs to be paid money irrespective of the company making profits or losses. A preference shareholder earns dividends if the company is making profits. A debenture holder is only a creditor of the company. A preference shareholder is the joint owner of the company. A debenture holder earns interest on the capital invested till the capital is not returned or gets the capital invested at the end of a stipulated term. A preference shareholder is not always promised a return of the capital invested. Instead, he earns dividends till the time the company exists and is profitable. The debenture holders are not invited to attend the company’s annual general meeting unless any decision affecting their interest is taken. The preference shareholders are always invited to attend the annual general meeting of the company. The debenture holders cannot interfere with the management and regulation of the company. The shareholders can control the affairs of the company. It is managed by the Board of Directors and the elected representatives of the shareholders. Debentures can be converted into shares.
Why Is The Knowledge Of Stpi Required In Accounts Payable
The knowledge of STPI is required in Accounts Payable because some software service providers get exemption from STPI for their software exports. So, in Accounts Payable, we have to define the vendor STPI location-wise. In India, there are different STPI locations. If one vendor supplies services or materials to all or some of the STPI locations, we need to maintain the same vendor STPI wise.
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Best Accounts Payable Clerk Interview Questions
As the team members in charge of bookkeeping as well as organizing accounts payable records and financial reporting, accounts payable clerks need a blend of financial expertise, technical proficiency, and industry knowledge to get the job done.
Aside from general education requirements , accounts payable clerks need problem-solving skills and the technical and software literacy required to learn and use the tools that are defining accounts payable processes in the modern era.
Those who train on the job should demonstrate their eagerness and capacity to catch on quickly and put their new skills to work.
Consider these common interview questions and answers when assembling your interview materials for potential payable clerk job candidates.
Answers Should Demonstrate:
Answers Should Demonstrate:
- The candidates understanding of the importance of three-way matching to accurate financial records, cash flow management, and overall financial health.
- The candidates ability to compare the purchase order, receiving documents, and vendor invoice to confirm the validity of the invoice.
Answers Should Demonstrate:
Answers Should Demonstrate:
Why Do You Want To Work As An Accounts Receivable Clerk
Certainly you do not want to have this position for years on endand interviewers are aware of it. The job is rather monotonous, and unless you see the bigger picture and understand how this job will open you doors that lead to other, more interesting working opportunities, you will easily lose your motivation.
Tell them about your career goals, what you want to do in two, five or ten years. Accounts Receivable position is a good start for your career in accounting, or business administration.
You can add that you do not make mistakes in work, and believe you will do a good job as a clerk.
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As A Accounts Payable Manager What Is Your Management Style
Try to avoid labels.
Some of the more common labels, like progressive, consultative, persuasive, can have several meanings or descriptions depending on which management guru you listen to.
The situational style is safe, because it says you will manage according to the situation, instead of one size fits all.
In my experience delegating responsibility and authority is crucial. A team needs to be able to develop and grow as individuals and a whole, not be held back by low expectations or ego.
I believe in building a team. Each member of the team should be clear on their role, know where they fit in and feel as though they can depend on one another. I also believe in real-time feedback. If you do something wrong you should know it immediately. Regardless of right or wrong, the further removed feedback is in time, the less effective it is.
Top Accounts Payable Interview Questions
An interview for an accounts payable position tests your ability to perform key functions when working with employees in the accounting department. Understanding the different questions an employer can ask helps you prepare and answer them effectively. In this article, we will review accounts payable interview questions to gauge your experience as well as tips to help you succeed during this interview.
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How To Answer Accounts Payable Interview Questions
A job as an accounts payable clerk can be a great career opportunity for someone interested in accounting. Your first interview is an important step in the pursuit of this possibility. Knowing some of the questions you will be asked ahead of time can help you make a good impression on your interviewer. In this article, we will look at commonly asked interview questions, along with example answers.
Accounts Payable Interview Assessable Skills Qualities & Attributes:
- FOCUS ON ATTENTION TO DETAIL An Accounts Payable Clerk must be able to focus intently on their task and not make mistakes. A mistake can cost the organization dearly in financial terms, and can also have a negative impact on employee morale, especially if payments are late or inaccurate.
- NUMERICAL ABILITY Although the majority of accounting software packages will do this for you, you should have a thorough understanding of tax rates applicable for your country, including VAT and National Insurance. You should also be able to carry out basic numerical calculations.
- WORKING TO DEADLINES AND TIMESCALES It is essential that, as an Accounts Payable Clerk, you are able to work to strict timescales in respect of paying invoices and also paying employee wages and bills.
- CONTINUOUS PROFESSIONAL DEVELOPMENT You will need to demonstrate an ability to be self-motivated, embrace changes that come into the organization in respect of financial regulations and tax rates, and also keep up-to-date with new accounting software and financial industry regulations.
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Accounts Payable Clerk Job Brief:
Accounts Payable Clerks are responsible for paying employees, checking over and verifying expenses, requesting receipts and also paying advances and pay checks on a regular and consistent basis. An Accounts Payable Clerk will also have to keep and maintain accounting ledges and post account transactions accurately and consistently. They will also need to reconcile the monthly statements and relevant or related transactions. Attention to detail and timely payments are an absolute must in this position, and these two skills will be particularly assessed during the Accounts Payable interview.
Important Accounts Receivable Interview Questions
Detail your responsibilities in accounts receivable.
Discuss all your responsibilities. Focus on the skills and knowledge you used to perform these functions efficiently such as:
- maintaining a high level of accuracy
- good verbal and written communication skills
- strong organizational skills
- printing out relevant reports
What information is included in a bill for services?
List the information, make sure you cover everything and highlight your attention to detail. Include a sample of a bill for service that you created in your interview portfolio.
What was your average accounts receivable days outstanding?
If relevant, discuss any corrective action taken to reduce this figure.
What do you consider the most important goals of accounts receivable?
These goals will depend on the needs of the organization. Show how you are aware of organizational needs and then identify the appropriate goals to meet them.
Demonstrate a thorough understanding of what the goals express and how they support department and company objectives. Common aspects include:
- positively impacting on company cash cycle
- increasing cash flow
- reducing bad debt and write offs
What are your strengths as an accounts receivable professional?
Try to make your strengths relevant to the job requirements. This list of strengths is a useful resource for answering interview questions about your strengths.
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Do You Prioritize Accuracy Or Efficiency When Working In This Role Explain Why You Made This Choice
An employer knows that an accounts payable employee must have accuracy and efficiency to perform well in their position. Be sure to underscore the significance of both, but you still need to choose one or the other.
Example:”I prioritize accuracy because inaccurate records have a larger consequence on the relationship with a vendor compared to missing a deadline. I think it’s easier to rebound from both of these mistakes through experience. You can spend more time working on certain types of financial documents while improving efficiency through repetition. You’ll explain to clients that you’re learning new processes while creating a long-lasting relationship with them.”
What Is The 3 Way Matching For Accounts Payable
Answer: This is a frequently asked accounts payable interview question you could answer by saying the process of comparing the purchase order is called a three-way order. In a three-way order, the goods receipt note and the suppliers invoice are compared and matched to know if the income is to be done partly or the entire amount should be paid at once.
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What Is Your Career Goal As An Accounts Payable Clerk
A well-qualified and successful accounts payable clerk will have the ambition to advance in their career. The interviewer wants to see if you have a growth plan. Have a goal that is achievable in about five to seven years. This shows the hiring manager that you are thinking about the future and you have plans for your career.
Example answer: “My goal is to be an accounts payable clerk for this company for a minimum of five years. I want to learn as much as I can about the business, while performing my job well. After five years, I would like to transfer into a management role. I am a great team player and I have excellent organizational skills, so I believe I am a good fit for management. I would love to continue learning and improve my skills with the goal of one day owning the company.”