by Anna Morelock
Asking the right questions during an accounting interview is the best way to determine if a candidate is the right fit for the job. And while technical knowledge is crucial, it’s essential to look for qualities such as problem-solving skills, attention to detail, and other soft skills.
Before we get into the most impactful accounting interview questions, let’s talk about what qualities a hiring manager should look for in an accountant.
RELATED: 6 Skills to Look for in a Small Business Accountant
What Qualities to Look for in an Accountant
Hiring managers should look for several qualities when hiring accountants, whether they’re entry-level or experienced. Other important qualities include:
- The ability to stay calm under pressure and handle difficult situations. Accountants are often faced with challenging tasks and deadlines. It is important that your new hire can maintain their composure and work efficiently under pressure.
- Strong attention to detail and organizational skills. Your accountant must be extremely organized so they can accurately report on the company’s financial health at any given time.
- Great interpersonal skills. People skills are useful for accountants who interact with clients or colleagues on a regular basis. They will need to communicate effectively and in an efficient manner to ensure that all parties involved are fully aware of what needs to be done.
- A strong sense of ethics. This is vital for every accountant because since they often have access to confidential or sensitive information about clients and their finances.
Impactful Accounting Interview Questions
To hire the best candidates, your interview questions should assess all the above qualities and more. So, what are the best interview questions to ask accounting candidates? Here is a list of 25 impactful accounting interview questions, broken up by technical skills, experience, and soft skills:
Technical Accounting Interview Questions + Sample Answers
1. What are the three types of financial statements? Explain each.
Accountants must follow strict procedures and rules in their accounting practices. They require a thorough understanding of those rules, key accounting documents, and accounting terminology. This question will help you gauge whether the candidate has a critical foundational knowledge of accounting.
Sample Answer:
“The three main financial statements are the balance sheet, the income statement, and the cash flow statement. The balance sheet shows a company’s assets, liabilities, and shareholders’ equity as a snapshot in time. The income statement lays out the revenues and expenses for a specific period. The expenses are subtracted from the gross revenue to show net income. The statement of cash flow statement shows how well a company generates cash to pay its debt obligations, operating expenses, and investments.”
2. What is the difference between accounts receivable (AR) and accounts payable (AP)?
An accountant keeps track of expenses and payments for an organization. Where and how to record expenses and payments are essential functions of the entry-level accountant’s role. The answer to this question will show whether a candidate understands how and where to account for the day-to-day transactions within your organization.
Sample Answer:
“Accounts payable are the amounts owed to a business by other organizations, like suppliers. Accounts receivable are the outstanding amounts due to a company from customers and other organizations. Accounts receivables are considered an asset, and accounts payable a liability.”
3. What accounting tasks are you most comfortable with? Which ones are you less comfortable with?
You want to know whether a candidate understands the basics of accounting, but you also want to know the depth of their experience and knowledge. This question can show what type of tasks a candidate has been used to doing in the past, what they can do well, and what they might not be so attuned to.
Sample Answer:
“I’m experienced in recording expenses and monitoring transactions for the accounts receivable and accounts payable using accounting software. I have assisted with the year-end closing out and will be assigned that task this coming year.”
More Technical Questions
- Name a few common budgeting methods and their key characteristics.
- What strategies do you employ to estimate bad debt?
- Can you explain the concept of accrual accounting versus cash accounting?
- How do you stay up to date on current accounting laws and regulations?
- Can you define working capital?
- What are five common mistakes in accounting? Have you ever made any of these mistakes? If so, how did you learn from those mistakes?
Accounting Interview Questions on Background and Experience + Sample Answers
1. What experience do you have with business metrics?
While not strictly a feature of accounting, practically all businesses use metrics or key performance indicators (KPIs) to track their progress and monitor performance. For example, they might track their customer acquisition cost.
An accountant must understand how the accounting data are used to calculate metrics and KPIs. The answer to this question will show how familiar they are with business analysis and reporting.
Sample Answer:
“All of the companies I have worked for use business metrics to monitor performance and develop business strategy. I’m well-versed in analyzing the accounts and producing management reports on specific KPIs.”
2. Can you describe a complex accounting problem you solved and how you approached it?
Accountants must follow strict accounting procedures, like those laid out under the Generally Accepted Accounting Principles (GAAP). Still, how to treat a certain asset or liability can be complex.
Accountants must use a method that is acceptable and compliant with reporting requirements. The answer to this question shows a candidate’s ability to problem solve and make optimal decisions.
Sample Answer:
“I worked for a company that was shutting down part of its operations. The costs associated with shutting down the operations were considered unusual expenses. I hadn’t encountered this type of accounting issue before, so I consulted with other accountants who had more experience to make sure I was taking the right approach. I made sure I understood the implications of the actions as well as the legal requirements. Lastly, I made sure I documented everything.”
3. What strategies did you use to monitor fraud and handle security in your previous roles?
Protecting an organization against fraud is top of mind where financial transactions are concerned. Accountants are directly responsible for fiscal operations and must be aware of the need for best practices and protocols to safeguard against fraud.
The answer to this question will show whether the candidate understands the importance of anti-fraud procedures and tools and their experience using them.
Sample Answer:
“All my past employers have implemented internal controls to safeguard assets and make sure the accounting records are accurate. For example, we might separate duties and use checks and balances so there is no opportunity for an employee to commit fraud. We also rotate staff so that there is a new set of eyes on various accounts and documents. We use strict systems so that documentation is easy to verify, for example, consecutively numbered purchase orders and invoices. We also revisit and revise our controls regularly.”
More Questions on Background and Experience
- How do you reduce human error in your accounting processes?
- Do you have any special accounting certifications or skills?
- Can you describe a time when you identified an error or discrepancy in financial records, and how you resolved it?
- Describe a time you saved a company money.
- What’s your experience with accounting software? Which software are you proficient in?
Accounting Interview Questions That Assess Soft Skills + Sample Answers
1. How would you present financial data to those who aren’t in the finance department?
Not everyone is a numbers person. Decision-makers in an organization rely on accountants to deliver financial data in a form they can understand—distilled down to show core results. Executives base their business strategy on these financial reports.
The answer to this question will reveal whether a candidate appreciates how to analyze and report data in a way that is easy for non-financial people to interpret and use.
Sample Answer:
“The important thing is to reveal trends or highlight areas of concern and use the minimum data required to support the assertion; otherwise, people can be overwhelmed. I try to distill what I see in the financial reports down to the most important takeaways.”
2. How do you promote teamwork and collaboration in the workplace?
This question is a universal one for all occupations. However, for a team of accountants, it’s critical that everyone follows consistent rules and communicates effectively to avoid mistakes or unnecessary work. How the candidate answers this question will reveal whether they enjoy collaborating with others and how skilled they are in managing relationships and people.
Sample Answer:
“I rely on my team completely and try to set a good example. I make sure that I regularly check in with them, individually and as a group, to listen to their concerns and act on those concerns. I communicate with them so that they know what is going on, and I always answer their questions or promise to find out the answer if I don’t know it. I also am conscious that everyone wants to progress as a professional, so I try to lay out a development path for them so that they stay motivated.”
3. Can you tell me about an obstacle you faced recently and how you overcame it?
How a person approaches problems tells you a lot about their character. Are they impulsive, or are they measured and careful in their decision-making? How a candidate answers this question can indicate how they make decisions and handle difficult situations.
This question often leads to follow-up questions as you try to understand the context of the problem the candidate was facing and why they made the decision they did.
Sample Answer:
“I once had a client who was not happy with our approach to their business transactions. I always set up realistic expectations and written guidelines with clients, so if a client has concerns, I make sure to refer back to those guidelines. In this case, a client asked me to cross a line that I wasn’t comfortable crossing, so I reviewed the guidelines with them and came up with a resolution.”
More Soft Skill Interview Questions
- How do you handle tight deadlines? How do you prioritize?
- What are three soft skills you think every accountant needs to succeed? How do you think you demonstrate those skills?
- Have you ever mentored a fellow accounting expert to improve themselves professionally? If so, what was the outcome?
- How do you handle stress? Do you have any specific methods?
- Can you describe a time when you went above and beyond in your job, and what motivated you to do so?
Hire Only the Best Accountants
When it comes time to interview your next accountant, be sure to ask the right questions to help you determine if they are the right fit for your organization. And if you’re struggling with finding qualified candidates, contact our team today. We’ll connect you with skill, experienced candidates within just two weeks.
by Alexandra Woodford 
by Brita Long 