- Tell me about yourself.
- Where do you see yourself in 5 years?
- Tell me about a time you had a conflict at work. …
- Why did you leave your last job?
- What are your long-term goals?
- How would you describe yourself?
- What is your greatest weakness?
- Tell me about your work experience.
Are you applying for a position as a financial analyst? Interviewing for a job can be stressful, but being prepared for the experience can go a long way toward making you feel confident and on top of your game. That means being ready to answer common interview questions and those that are likely to come up specifically for a financial analyst role.
Financial analysts evaluate their company’s and other organizations’ past and present financial data and might give guidance to people and companies as they make decisions about stocks, bonds, and other kinds of investments. Typical job responsibilities might include assessing financial data, preparing written reports and giving presentations, studying business trends, appraising a business’s financial statements, and potentially meeting with company management to determine how the firm is doing and to evaluate their leadership team. A financial analyst might work at a bank, an insurance company, a pension fund, or another type of business in any industry.
3 most frequently asked accounting interview questions
What financial methodologies are you familiar with for conducting an analysis?
An interviewer asks this question to find out how familiar you are with industry terminology. Your answer should include more than one method and a brief description of how you apply those methodologies to an analysis.
Example: “I have experience working with vertical, horizontal and trend analysis to gauge a companys financial progress over a period of time. In my previous job, I also used ratio analysis to determine my companys liquid assets in relation to its liabilities.”
What happens to a company’s cash flow when there is an increase in accounts receivable?
This is another type of question that an employer uses to gauge your preparedness for the job you are interviewing for. In your answer, address the relationship between cash flow and accounts receivable and explain how one can impact the other.
Example: “When there is an increase in accounts receivable, this means that there is a decrease in cash flow, net worth and value of company assets. In other words, if it continues to increase, a company will soon run out of money.”
Have you ever encountered inconsistencies in a company’s finances? How did you address this situation?
An employer uses this question to determine how you would react to a potential problem or an ethical dilemma. In your answer, demonstrate your devotion to ethical business practices and enforcement.
Example: “In my previous position, I was analyzing a small businesss financial records when I noticed that a portion of funds had disappeared from its income statement. There was no record of where these funds went, and the same amount was missing each month, so I talked with my supervisor and we brought it to the business owners attention.”
Example: “I have several years of accounting experience, but I am also highly skilled in data analysis. In my previous role, I was responsible for analyzing financial statements and creating reports on key performance indicators. This helped me identify trends within the company and make recommendations for improvements. My skills as an analyst are what led me to apply for this position.”
Example: “I have extensive experience using both QuickBooks and SAP for my previous employer. I am comfortable working with multiple platforms, so I was able to work on projects that required either program. In my current role, we use QuickBooks, but I also learned how to use Microsoft Excel to complete some tasks.”
Example: “I think communication is one of the most important skills for an accountant to have. I’ve found that being able to clearly communicate financial information to others can make accounting much more efficient. In my last position, I was often asked to present our findings to senior management, so I developed presentation software to help me do so. This skill has helped me become very comfortable with public speaking.”
Interviewers may ask this question to understand how you approach a task and what your thought process is. They want to know that you can identify problems, develop solutions and implement them effectively. In your answer, describe the steps you take when reviewing financial statements and highlight any specific skills or experiences that help you do so.
Example: “I would first identify which data set has the error. I would then compare the two sets of data for any inconsistencies. If there are no discrepancies between the two sets of data, I would look at other factors that could have caused the discrepancy, such as human error or incorrect formulas. Once I find the cause of the discrepancy, I would correct the formula or enter new data into the spreadsheet.”
Things are changing quickly in our industry. What do you feel are the biggest challenges within the role of Accounting Analyst?
There are a variety of ways to answer this one. These days, mentioning Artificial Intelligence, software, and related items should do well. Regardless of your answer, be sure to have something to backup your responses.
Negative working capital is common in some industries, such as grocery retail and the restaurant business. For a grocery store, customers pay upfront, inventory moves relatively quickly, but suppliers often give 30 days (or more) credit. This means that the company receives cash from customers before it needs the cash to pay suppliers. Negative working capital is a sign of efficiency in businesses with low inventory and accounts receivable. In other industries, negative working capital may signal a company is facing financial trouble.
There are essentially four areas to consider when accounting for PP&E on the balance sheet: initial purchase, depreciation, additions (capital expenditures), and dispositions. In addition to these four, you may also have to consider revaluation. For many businesses, PP&E is the main capital asset that generates revenue, profitability, and cash flow.
On the balance sheet, the asset account of inventory is reduced by the amount of the write-down, and so is shareholders’ equity. The income statement is hit with an expense in either COGS or a separate line item for the amount of the write-down, reducing net income. On the cash flow statement, the write-down is added back to operating cash flows as it’s a non-cash expense but must not be double-counted in the changes of non-cash working capital.
Step back and give a high-level overview of the company’s current financial position, or companies in that industry in general. Highlight something on each of the three statements. Income statement: growth, margins, profitability. Balance sheet: liquidity, capital assets, credit metrics, liquidity ratios. Cash flow statement: short-term and long-term cash flow profile, any need to raise money or return capital to shareholders.
Cash is king. The cash flow statement gives a true picture of how much cash the company is generating. That being said, it’s important to note that all three statements truly are required to get a full picture of the health of a company. Learn more about how the three financial statements are linked.
FAQ
What does accounting analyst do?
What questions will be asked in an accounting interview?
- Why do you want to do accountancy?
- Are you able to convey technical information to someone of more or less technical ability? Please give an example.
- What are your strengths and weaknesses?
- Can you give examples of when you’ve helped a team be successful?
- Why do you want to work for this firm?
How do I prepare for an analyst interview?
- Which business analytics tools or systems have you worked with? …
- In your opinion, what is the role of a business analyst? …
- When you are given a new project, what do you do first?
Why should we hire you as analyst?
“I have previous experience working with projects that had similar problems to yours. I also have excellent communication skills and further technical knowledge that would be an asset to your company. The mix of technical and team skills I bring to the table make me an ideal fit for this role.”
