Accounting interview questions are designed to assess a broad array of skills jobs in this field require. These include organizational skills, budgeting, forecasting, problem-solving, and time management.
Given their diversity, it is critical that you prepare yourself well in anticipation of your interview. Preparation should entail practicing your answers to both behavioral and technical accounting interview questions.
Fortunately, we have prepared an extensive list of the most common accounting interview questions, along with the reasons recruiters ask them and the best answers. So, stay tuned to learn how to highlight your qualifications efficiently and ace your interview!
Key Takeaways
Accounting interview questions include both technical and behavioral questions.
Technical accounting interview questions aim to evaluate the hard skills you can bring to the job, such as knowledge of accounting principles and time management.
Behavioral accounting interview questions are designed to assess your soft skills, including problem-solving, communication, and teamwork.
Preparing for an accounting interview includes researching the company, polishing your technical knowledge, and practicing your answers.
8 Technical Accounting Interview Questions
Let’s explore the most common technical accounting interview questions and answers so that you know when and how to emphasize your hard skills.
#1. What are the most common mistakes in accounting?
By asking this question, the interviewer seeks to assess your knowledge of accounting principles, attention to detail, and ability to identify areas where mistakes usually occur. Additionally, they want to know whether you can prevent these mistakes.
Sample answer
The most common mistakes in accounting are data entry errors, including duplicating entries and misplacing numbers, as well as failing to reconcile accounts regularly. Another common issue is an incorrect classification of revenues and expenses, which can skew financial statements. Internal controls, regular report reviews, and the use of accounting software with built-in error-checking features are paramount for avoiding these mistakes.
#2. What is the difference between accounts payable and receivable?
With this question, the interviewer checks your familiarity with key accounting concepts. The concepts of accounts payable and receivable impact cash flow management, financial statements, and business operations, which is why it’s paramount that you know the difference between them.
Sample answer
Accounts payable is the money a company owes suppliers and vendors for the goods and services they’ve provided. On the other hand, accounts receivable refers to the money a company hasn’t yet collected from its customers for the goods and services it’s provided for them. Both concepts are vital for managing a company’s cash flow and working capital.
#3. What are the different types of accounting?
The purpose of this question is to evaluate your understanding of different branches of accounting and the field’s broad scope. Your answer should showcase your knowledge of specialized areas and their purpose for different business needs.
Sample answer
There are several different types of accounting, including financial accounting, which deals with preparing financial statements for external uses; management accounting, which provides internal reports for decision-making; tax accounting, which handles tax returns and compliance; and forensic accounting, which investigates financial discrepancies. They all have a specific purpose, and combined, they help companies make informed business decisions and comply with regulations.
#4. Define and explain the three financial statements.
This is one of the finance interview questions that aim to assess your knowledge of accounting and financial analysis, for which financial statements are crucial. Understanding their purpose and interaction is integral for decision-making and evaluating a company’s performance.
Sample answer
The three financial statements are the income statement, balance sheet, and cash flow statement. The income statement shows a company’s revenues, expenses, and profitability over a certain time period. The balance sheet provides a print of a company's assets, liabilities, and equity at a specific point in time. Lastly, the cash flow statement details the inflows and outflows of cash, grouped into operating, investing, and financing activities, thus helping assess liquidity.
#5. When would you capitalize a purchase instead of expensing it?
This question tests your understanding of the difference between capitalizing and expensing purchases, as it’s necessary for accurate financial reporting and asset management. It also evaluates your knowledge of accounting principles, such as the matching principle and the treatment of long-term assets.
Sample answer
I would capitalize a purchase if it brings long-term value to the company. Such purchases include equipment, buildings, and other assets that can be used over a long time period. In contrast, purchases I would expense have a short-term benefit. Some examples are office supplies and rent.
#6. Define EBITDA and explain its relation to accounting.
This question is pretty straightforward—it aims to assess your understanding of EBITDA, a key performance measure used in accounting and finance to determine a company’s profitability before non-operational costs. Additionally, it tests your ability to use this metric for financial analysis.
Sample answer
EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It measures a company’s financial health, focusing on how well it can generate money. It excludes the effects of financing, taxes, and non-cash accounting items (depreciation and amortization). Since these factors can vary, such evaluation helps compare profitability between companies.
#7. What is the difference between deferred revenue and accounts receivable?
With this question, the interviewer wants to see whether you understand the difference between assets and liabilities. They also seek to test your ability to recognize timing differences in accounting transactions.
Sample answer
Deferred revenue is the money a company has received for goods and services it has yet to deliver. For example, if a client prepays to repair their floors, their payment counts as deferred revenue until the company delivers the service and repairs their floors. On the other hand, accounts receivable is the money owed to the company for a service it’s already provided.
#8. How would a significant purchase impact the three financial statements?
This question focuses on your knowledge of how acquiring a long-term asset, such as a new piece of machinery, affects a company’s financial position and performance. Moreover, it gives the interviewer insight into how well you understand the connection between the income statement, balance sheet, and cash flow statement.
Sample answer
A significant purchase, such as a piece of equipment, impacts the three financial statements at the time of the purchase as well as long-term. Its value is added to the balance sheet, so the asset increases while the liability decreases. Its cost is recorded as an expense on income statements, and the transaction is recorded on cash flow statements. Over time, the equipment’s depreciation affects all three financial statements.
5 Behavioral Accounting Interview Questions
In addition to technical skills, accounting interview questions aim to evaluate candidates’ soft skills. They include problem-solving, adaptability, teamwork, communication, and organizational skills and are assessed with behavioral questions.
Here are some of the most common behavioral accounting interview questions:
#1. What accounting software are you familiar with?
This question serves to assess your level of expertise and experience. The interviewer asks it to determine whether you can efficiently use software to streamline accounting processes, enhance accuracy, and improve reporting.
Sample answer
I’m proficient in several accounting software programs, including QuickBooks and SAP. Additionally, I have basic knowledge of Xero, and I’ve used Excel for financial analysis and reporting.
#2. How do you minimize the chances of errors in your work?
By asking this question, the interviewer wants to check your attention to detail and ability to implement processes that reduce the risk of errors in accounting, which is vital for ensuring reliability and accuracy in financial reporting.
Sample Answer
I use several strategies to minimize the chances of errors. First of all, I make sure to double-check my work, especially when it comes to complex calculations or data entry. Additionally, I use accounting software features such as error-checking tools and automated reconciliations. Most importantly, I follow standardized processes and review financial statements in detail before submission.
#3. What made you pursue a career in accounting?
This is one of the common entry-level accounting interview questions, although you can expect it even if you’re an experienced accountant. With it, the interviewer wants to learn more about the motivation behind your career choice and your long-term plans and goals.
If you’re inexperienced, you can talk about your volunteering or internship experience and highlight the skills you have that can benefit the company.
Sample answer
I served as the cashier while I was in high school, and during that time, I learned how to track expenses and predict the cost of upcoming events. Since I enjoyed the experience and gained valuable knowledge, I decided to pursue an education in accounting. In college, I volunteered as an accounting consultant at a local community center, further developing my analytical and organizational skills.
I believe this experience has prepared me for a career in accounting, and I hope to enrich my knowledge through my work and advance to a senior position over time.
#4. How do you deal with dissatisfied clients?
This question is designed to evaluate your interpersonal skills and commitment to customer satisfaction. Your answer will also give the interviewer an idea of how well you handle difficult situations and whether you can remain calm and positive under pressure.
Sample answer
Since customer service is an integral part of my work, I strive to meet my clients’ expectations and provide the best possible service tailored to their needs. If any of them express discontent, I make sure to talk to them about the issue in person, carefully listening to their feedback and detailing my accounting guidance.
#5. How do you handle disagreements with coworkers?
When the interviewer asks this question, they want to see whether you possess adequate teamwork skills and conflict-resolution techniques. Handling disagreements in the workplace requires respectful communication and active listening, so make sure to highlight these in your answer.
Sample answer
While disagreements in the workplace can occur due to differences of opinion, it’s essential to address them respectfully. I approach such situations with the intention of having a constructive dialogue in private, ensuring I listen to my coworker’s point of view and respectfully explain mine. I believe constructive dialogue can greatly benefit the team atmosphere and performance, so I strive to reach a consensus with my colleagues on all matters.
19+ More Accounting Interview Questions
Since accounting interview questions range from technical to behavioral ones, they’re rather numerous and diverse. Let’s list a few more you may be asked during your job interview:
Accounting Interview Questions
Tell me about an accounting process you’ve improved or developed.
How do you handle tight deadlines?
How do you prioritize your daily tasks?
Do you have a certified public accountant (CPA) license?
How do you present data to colleagues outside of the finance sector?
What is the accounting equation?
How would you decide whether a company can afford its short-term commitments?
What is PP&E? How do you record it?
What’s the difference between cash and accrual accounting?
What issues could prevent precise and timely financial statements?
How can our company enhance its financial health?
When it comes to accounting software, do you prioritize price or functionality?
What does having negative working capital mean?
What accounting programs do you plan to learn more about?
How do you ensure the confidentiality of clients’ information?
How do you reconcile a client’s bank account?
Tell me about a time you made a mistake.
How do you stay up to date with changing accounting regulations and standards?
In what ways does fraud spread in the accounting industry?
Which enterprise resource planning (ERP) systems are you familiar with?
3 Expert Strategies for Acing Your Accounting Interview
Aside from reviewing the most common accounting interview questions, there are some other steps you should take to ensure your interview goes smoothly. Let’s see what they are:
#1. Research the Company
Researching the company before the interview is crucial for several reasons. First of all, it will give you the necessary information about their mission and scopes, which you can then use to answer organization-specific interview questions, such as, “How can our company enhance its financial health?”
Furthermore, demonstrating knowledge about the interviewing company will make you come across as genuinely interested in the position, and enthusiasm is a quality all recruiters appreciate.
You can start your research on the company’s website to get a clear idea of its operation. From there, look up its page and the recruiter’s profile on LinkedIn to learn more about them. The information you gather will help you seem personable at your interview, which is another highly appreciated quality in a job applicant.
#2. Highlight Your Analytical Skills
Given the job's nature, you should highlight your analytical skills, such as brainstorming, critical thinking, data analytics, and forecasting. You can speak from your experience in previous roles, explaining how you managed to contribute to a company or resolve certain issues using these skills.
Additionally, you can talk about how you’ve acquired and developed them during your education or internship and emphasize your willingness to perfect them as one of your career goals.
Finally, you can practice your answers in front of a mirror and do a mock interview to ensure you convey your message concisely and efficiently.
#3. Prepare for Behavioral Interview Questions
On top of polishing your technical knowledge, you should also prepare for behavioral interview questions, given their importance at an accounting job interview. These questions usually begin with “Tell me about a time” and require you to showcase your experience and expertise through storytelling.
The best way to answer them is by using the STAR method, which helps you structure your response in the four following stages:
STAR Method
Situation: Provide context for your answer by outlining a specific situation in which your technical knowledge and skills made a difference.
Task: Explain the responsibilities you had in the situation you’re recounting. If the situation called for problem-solving skills, describe the issue you needed to resolve.
Action: Talk about the specific action you took to address the issue or complete a task, highlighting your adaptability and creative thinking skills.
Result: Conclude your answer with the result you achieved or the lesson you learned throughout the process.
Final Thoughts
Accounting interview questions are quite diverse, as they encompass both those that address your technical knowledge and those that assess your soft skills. Whether you’re experienced or interviewing for an entry-level position, you need to highlight the concrete skills you can bring to the company, as well as how you can contribute to the positive workplace atmosphere.
Finally, preparation is the key to a successful accounting interview, so take your time to research the company thoroughly and prepare your answers to the most common questions.
