Accountant interview questions

What they're checking

Whether you understand how the statements fit together, not just what each one is.

A strong answer covers

1. The income statement shows revenue and expenses over a period, ending in net income.
2. The balance sheet shows assets, liabilities and equity at a point in time, with assets equal to liabilities plus equity.
3. The cash flow statement shows cash from operating, investing and financing activities over the period.
4. Connect them: net income starts the cash flow statement and flows into retained earnings, non-cash items such as depreciation are added back, and closing cash matches the balance sheet.

What they're checking

Practical accuracy, and whether you investigate differences rather than force a match.

A strong answer covers

1. Compare the bank statement balance with the cash balance in the ledger for the same date.
2. Identify timing differences, such as payments not yet cleared and deposits in transit.
3. Record items that appear only on the bank statement, such as fees and interest, in the books.
4. Investigate anything still unexplained until the two agree, then document the reconciliation for review.

What they're checking

Whether you work in an organised, checked way under deadline pressure.

A strong answer covers

1. Describe the timetable and the order, starting with cut-off for sales, purchases and payroll.
2. Cover accruals, prepayments, depreciation and reconciliations of the key balance sheet accounts.
3. Explain the reviews, such as variance analysis against budget and the prior month, and the sign-offs.
4. Say how you have made a close faster or more reliable, with the result.

What they're checking

Whether you can find the story behind a number and explain it clearly.

A strong answer covers

1. Break the variance down by account, cost centre and supplier to find where it sits.
2. Separate timing differences and one-off items from genuine increases in spending.
3. Check for errors, such as miscoding or a missing accrual, before treating the overspend as real.
4. Explain the cause to the budget holder in plain words and agree what needs to change.

What they're checking

Integrity, and whether you fix the cause as well as the number.

A strong answer covers

1. Describe the error and how you found it, such as during a reconciliation or a review.
2. Explain how you assessed the impact and told the right people promptly.
3. Describe how it was corrected in the books and in any reports already issued.
4. Say what you changed to prevent it happening again, such as a check or a control.