Accounting is an evergreen profession, with a consistent demand throughout the year in every industry. Accounting can be a great career option for those who are interested in pursuing it and for those who have a flair for numbers, spreadsheets, and balance sheets. To make a mark in your career as an accountant, you need to have a solid understanding of the principles of finance and accountancy. When your studies are over and you are planning to attend an accountant interview, there are common accounting interview questions that may be asked of you. In our blog, we will be covering basic accounting questions that will help you to prepare and crack the interview like a pro. Read on:
Financial ratios are created with numerical values taken from financial statements to get meaningful information about a company’s performance. Numbers found on a company’s financial statements such as – the balance sheet, income statement, and cash flow statement are used to perform quantitative analysis about any company’s liquidity, rate of returns, growth, margins, profitability, valuation, and so on.
Accounts receivable are the amounts owed to a company by its customers. Receivables are only created when sales are made on credit.
Accounts payable are the amounts that a company owes to its suppliers. Payables are only created when purchases are made on credit.
Cash basis accounting records revenue and expenses when payments are received or disbursed. It doesn’t account for either when the transactions that create them occur.
Accrual accounting records revenue and expenses when those transactions occur and before any money is received or paid out.
Balance sheets and income statements both offer valuable information on any company’s financial health. But, yet they are different from each other in a few key ways.
The best way to deal with non-financial clients is to make them understand in their own language. For that, you can avoid technical language and data minutiae with them as they’re not going to understand what it means. Talk to them in terms of profit and loss numbers.
It can also be shown in charts and graphs.
The conversation needs to be concise and data-centric so that they can understand numbers. While talking to the client, we can pause and let them ask about concerns they have. This practice will make them feel engaged and not just one-way communication.
The answer to this question can be simple –
“I decide which tasks are the most important. Then I put it on the calendar, set timings to complete it, and then strictly adhere to the timelines I set and follow them with heart. This is how I complete multiple accounting works simultaneously.”
Like in any other job, when there arise any conflicts or disagreements among employees, the best thing to do is sit at the round table together, listen to each other’s point of view, discuss the problem area, take experts’ opinions, and get it resolved. That’s how any organization or institution works. In the case of clients also, the same route can be taken. Wherein, we can discuss the issues with everyone and then come to a solution with everybody’s consent.
An interviewer might ask you this question to check your response and how you create more efficient organizational processes. During your accounting career, choose a specific scenario where you implemented a process by changing the already existing procedures that have made the work easier for you and your team.
Example: In my previous organization all the accounting work was done on paper. One fine day there was a client’s file that was missing. We had to struggle a lot to find the file and show them the balance sheet. I was new to the firm at that time and someone else was handling the project. When we couldn’t find the file, the client said no to our work and we lost the contract with them. I suggested going digital and keeping the records online on a drive and sharing access with the entire team. I suggested digitizing our work methods to help us process documentation, and the managers agreed. Over the next several months, we transferred the majority of documentation to a digital format and increased the team’s efficiency by 50%.
With my efficient team, I bifurcate the work in such a manner that they don’t feel overburdened and then I am there to help them at any step. That’s how I manage to do the accounting work for my clients seamlessly without any fuss.
There is a range of challenges in the accounting field that accounts professionals are facing right now:
The candidate should be clear about their career goals and how they plan to achieve them. When an interviewer asks you what you are your long-term aspirations”, then your answer should be – “I would like to be a CPA and would like to work my way up to a controller position within the next XYZ years. I plan to take the CPA exam in the next year and will continue to learn accounting software and business processes so I can be an asset to any company I work for”.
I keep myself up to date with technology and software in the accounting field and also take sessions in my office. Interested teammates come and learn from me. With real-time examples of discussions, we crack the knack of accounting together.
Apart from preparing for the standard interview questions, do some company research and read the job description carefully to understand if your skills and experience meet the company’s requirements. Other than that, in practice, you should know the tech integrations, and you should have a fair idea about accounting software that comes as a savior for you.