10 Technical Interview Questions to Ask For an Entry-Level Accountant Featured
Here are 10 technical interview questions to ask for an entry-level accountant 👇
âž¡ What are the 3 financial statements, and what role do they each serve?
The 3 statements are foundational to everything you do as a Finance & Accounting professional.
Showcasing your understanding of these statements is a must-have
âž¡ Are the 3 financial statements connected? If so, how?
Many are familiar with the 3 statements but arent as familiar with how they feed into one another.
Understanding how net income & retained earnings tie into one another and how the cash flows get generated showcases a strong foundation.
âž¡ What is the cost of goods sold? What would be an example of some for a SAAS startup?
Gross profit is one of the most critical areas of your P&L...but do you understand what makes up your Cost of Goods Sold? And how that differs from an operating expense?
âž¡ Where would prepaid expenses show up on a statement of cash flows?
This question is tricky, and few get it right - and thats OK. My goal with these questions is to throw a mix of easy, moderate, and challenging questions to see how far I can stretch where their proficiency lies.
âž¡ What is the difference between cash & accrual accounting? Are they both allowed under GAAP?
Many founders I speak with have trouble understanding the difference between Cash and Accrual accounting.
If you can explain that difference to me, you can one day explain it to our clients.
âž¡ What is deferred revenue?
Deferred revenue is one of the most critical areas of your balance sheet, and accrual accounting.
Showcase that you understand this crucial concept, and youll go far.
âž¡ What would the journal entries be for this scenario?
Say you hired a legal firm last month, and they haven’t sent you their bill yet. You incurred about $5k of their services. How can you close the books for last month without waiting on them?
This is one of my favorite questions, as it showcases the use of accruals, which I find to be one of the trickiest areas of accounting.
Understanding how accruals get booked and how they get reversed is a getting sign of a strong foundation.
âž¡ What would the journal entries be for this scenario?
You just bought a $15k software license. Under the accrual method, how would you record this month’s activity?
Similar to accruals, prepaid can also be tricky. Showcasing your knowledge here shows that you understand what prepaid is and the fundamentals of journal entries.
âž¡ What excel formula would you use to summarize monthly data every quarter for:
Revenue
Cash
Many LOVE asking excel questions in interviews - excel is crucial in being a good Finance & Accounting professional.
Hope you found this bog post helpful.
Important Links:
âž¡ What are the 3 financial statements, and what role do they each serve?
The 3 statements are foundational to everything you do as a Finance & Accounting professional.
Showcasing your understanding of these statements is a must-have
âž¡ Are the 3 financial statements connected? If so, how?
Many are familiar with the 3 statements but arent as familiar with how they feed into one another.
Understanding how net income & retained earnings tie into one another and how the cash flows get generated showcases a strong foundation.
âž¡ What is the cost of goods sold? What would be an example of some for a SAAS startup?
Gross profit is one of the most critical areas of your P&L...but do you understand what makes up your Cost of Goods Sold? And how that differs from an operating expense?
âž¡ Where would prepaid expenses show up on a statement of cash flows?
This question is tricky, and few get it right - and thats OK. My goal with these questions is to throw a mix of easy, moderate, and challenging questions to see how far I can stretch where their proficiency lies.
âž¡ What is the difference between cash & accrual accounting? Are they both allowed under GAAP?
Many founders I speak with have trouble understanding the difference between Cash and Accrual accounting.
If you can explain that difference to me, you can one day explain it to our clients.
âž¡ What is deferred revenue?
Deferred revenue is one of the most critical areas of your balance sheet, and accrual accounting.
Showcase that you understand this crucial concept, and youll go far.
âž¡ What would the journal entries be for this scenario?
Say you hired a legal firm last month, and they haven’t sent you their bill yet. You incurred about $5k of their services. How can you close the books for last month without waiting on them?
This is one of my favorite questions, as it showcases the use of accruals, which I find to be one of the trickiest areas of accounting.
Understanding how accruals get booked and how they get reversed is a getting sign of a strong foundation.
âž¡ What would the journal entries be for this scenario?
You just bought a $15k software license. Under the accrual method, how would you record this month’s activity?
Similar to accruals, prepaid can also be tricky. Showcasing your knowledge here shows that you understand what prepaid is and the fundamentals of journal entries.
âž¡ What excel formula would you use to summarize monthly data every quarter for:
Revenue
Cash
Many LOVE asking excel questions in interviews - excel is crucial in being a good Finance & Accounting professional.
Hope you found this bog post helpful.
Important Links:
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