To grow in your career as an accountant, you would need to have a solid understanding of the principles of finance, accountancy, and other related topics. Maybe, after completing your M.Com online course, you must be planning to attend an accountant interview and are looking for the most popular accounting interview questions. Look no further. We will be covering basic to advanced accounting questions for interview for freshers and experienced with detailed answers.
Q1. Tell me about yourself!
Ans. This is a general interview question. But since you are sitting for an accounting interview, you must craft an answer highlighting your professional accounting background. Mention your educational journey in finance, your experience (if any) working at an accounting firm, your milestones, and your strengths.
Make a note of how you can answer this question.
First, provide a basic introduction of yourself. Then you can bring in your experience in the field. You can talk about your years of experience working as an accountant for a specific industry and which areas of accounting were your primary focus areas.
If you are applying for a fresher accounting job, you can mention favourite subjects in accounting and how you have gained expertise in them with good marks in your college or certifications you have taken.
It is important for both freshers and experienced to discuss their educational qualifications. Mainly, it helps the recruiter understand the context of your background a little better. Apart from your university degree, having one or two accounting certifications in a specific area can boost your employability.
Discuss your professional milestones. Maybe it was streamlining the company’s budgeting process. Or it could be about preparing extensive reports that everyone in the team could understand clearly.
Along with that, it may also help to discuss which accounting software you may be comfortable using.
Lastly, talk about your career goals and possibly try to show those goals will align with the company.
Sample Answer
“Sure, my name is [Your Name], and I have been working as an accountant for [number of years] with a focus on [mention any specific areas of expertise or industries you have experience in]
I earned my Bachelor’s degree in Accounting from [University Name], where I developed a strong foundation in financial management, auditing, and taxation. Additionally, I hold [certification name], which demonstrates my commitment to staying up-to-date with industry best practices.
In my previous role at [Company Name], I was responsible for managing the financial statements and preparing detailed reports for executive review. I also played a crucial role in streamlining the company’s budgeting process, resulting in a 20% reduction in overhead costs. Prior to that, I worked at [Company Name], where I gained extensive experience in conducting internal audits and ensuring compliance with regulatory requirements.
Q2. What are the different types of accounting?
Ans. Focus on providing short but useful definitions for the types while answering this accounting interview question.
Different types of accounting are –
- Financial Accounting – This branch of accounting records, summarises and reports the business transactions that take place over a time period in an organisation. It is required in both the private and public sectors.
- Administrative Accounting – Administrative accounting is focused on the administrative aspects of the company and is used above all to assess the fulfilment of the established objectives and improve the implemented strategy. It is very useful for making forecasts and planning the actions and resources to be used.
- Tax Accounting -Tax accounting helps to register and prepare reports related to tax returns to the public treasury and payment of taxes.
- Cost Accounting – This type of accounting is more focused on companies of an industrial nature. It helps to make a detailed analysis of the unit costs of production, sales, and, in general, the production process that the company carries out.
- Management Accounting – Management accounting has a broader vision than cost accounting since it records all the economic and financial information of the company to be able to make short-term and long-term decisions.
Q3. Which accounting platforms have you worked on? Which one do you prefer the most?
Ans. Describe the accounting platforms (QuickBooks, Microsoft Dynamic GP, etc.) that you have worked with.
This is one of the important interview questions and answers for accountants. So consider the following tips while preparing for it.
Show you have a good understanding of the accounting platform you use. Try not to mention those platforms you have not worked with before.
You can further specify what type of businesses use them. For example, you can mention that small and growing enterprises use the affordable plan of QuickBooks Online for creating invoices, tracking expenses and utilising the software’s built-in reports.
It is best to avoid solely stating personal preferences. Focus on the platform’s strengths and how it aligns with your work style or the needs of the organisation.
Q4. What is working capital?
Ans. This is one of the basic accounts questions for interview. You can simply state its definition or give an example to further elaborate. Working capital is calculated as current assets minus current liabilities, which is used in day-to-day trading. In a simple accounting scheme, the concept of working capital focuses on the capital resources that a given company can count on in the short term to operate. These resources owned by the company are the cash, the portfolio of financial products, and other investments made by the company.
Further, highlight your answer with your experience (if any).
You can furnish your answer for this accounting-related interview question like this:
“In my previous role, I monitored working capital so that optimal cash flow management was properly done. This helped me identify opportunities to reduce inventory holding costs. Efficiency-wise that helped.”
Q5. Give a suggestion to improve the company’s working capital flow.
Ans. To give the recruiter an idea of your problem-solving skill, focus on tackling this basic accounting questions for interview for freshers with answer below.
“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 is one of the generic interview questions for accounts professionals. It is also important from the point of view of B.Com interview questions. There are industries that work with negative working capital, such as electronic commerce, telecommunications, etc. So do some research on working capital before answering.
Q6. How do you maintain accounting accuracy?
Ans. This is among the most basic accounting questions that employers ask all levels of candidates. Focus on mentioning the importance of keeping up with accuracy at all times and the tools you know how to use.
An example of answering a general accounting interview question like this one is given below.
Maintaining the accuracy of an organization’s accounting is an important activity as it can result in a huge loss. There are various tools and resources which can be used to limit the potential for errors to creep in and address them quickly if any errors do arise. My favourite is MS Excel.
Some of the most common ways of maintaining accuracy in accounting are:
- Identify revenue streams
- Keep a close eye on invoices and receipts
- Prepare tax returns to avoid penalty
- Prepare financial statements
- Keep tabs on deductible expenses
Q7. Since you mentioned that MS Excel is your favourite, please give us three cases where Excel will make your life easier.
Ans. This is a common accounting interview question.
While MS Excel has many advantages, it is easy to miss the main points regarding its use with company finances.
So, before answering, consider the following tips.
- Focus on how Excel can streamline processes, save time, and improve accuracy in the accounting context.
- Discuss practical examples demonstrating how Excel has made a difference in your previous accounting work or how it can enhance specific accounting tasks.
- Do not forget to mention formulas, data manipulation, and customisability.
Sample Answer
“As an accounting professional, I find MS Excel an indispensable tool for streamlining various tasks. Here are three cases I can think of.
Financial Data Analysis
Excel’s powerful data analysis tools, such as pivot tables and charts, simplify organising and interpreting financial data. With pivot tables, I can quickly summarise large sets of financial information, generate reports, and gain valuable insights into the company’s financial performance.
Excel also has good charting capabilities that enable me to present data visually. Because of that, stakeholders have been able to understand complex financial trends and patterns.
Budgeting and Forecasting
Creating budgets and forecasts is a fundamental aspect of accounting. I can perform complex calculations and projections using Excel’s built-in formulas and functions. For example, spreadsheets make it easy to calculate NPV (Net Present Value), IRR (Internal Rate of Return), etc.
Excel’s flexibility also allows me to adapt the budget as circumstances change. It ensures that financial planning remains accurate and up-to-date.
Financial Reporting Automation
Excel’s automation features help me save considerable time in generating financial reports. I can input new data through predefined formulas and Excel will automatically update the entire report accordingly. This automation minimises the risk of manual errors and ensures that reports are consistently formatted and accurate. I also like the ability to link data from other sources, such as accounting software or databases, further streamlines the reporting process.