Bookkeeper Interview Questions

List of 30 Bookkeeper Interview Questions & Answers

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1. 1.

   What have you done recently to become a better bookkeeper?

   How to Answer

   This question allows the interviewer to gauge how motivated you are to learn new skills. They will most likely be looking for a candidate that takes initiative to learn, so be sure to call out recent examples where you have acquired new skills.
   
   

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   1 Community Answer

   Anonymous Answer

   "To become a better bookkeeper I make sure that I am staying up to date on relevant topics. I also look for opportunities where I am able to grow."

   

   Cindy's Answer

   Great. Can you bring both of these topics back to the opportunity? What relevant topics have you learned about lately? Is this an area that would be interesting to the interviewer (and a way to engage in conversation)? In what ways would you like to enhance your skills (and as a result, add more value to the job)?

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Brian Schuchart wrote: "I am always looking for ways to learn more about my profession and acquire new skills. As an example, I recently took a two week online course called Advanced Bookkeeping where I learned new skills related to inventory accounting. Since your organization is a retailer, I believe I could use the knowledge obtained from this course in the bookkeeper role. Once in the role, I would also seek out continuing education that allows me to apply skills acquired to help the organization."

2. 2.

   How would you handle working in an increasingly remote work environment?

   How to Answer

   This is a question to gauge if you are disciplined enough to work from home. Be sure to touch on how you would stay focused and communicate with team members. Even after things return to normal, remote work may continue to be more common across many industries including accounting.
   
   

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Brian Schuchart wrote: "I have experience working remotely. At my internship, we were able to work from home on Fridays in the summer. I enjoyed working from home and was able to stay on task and communicate effectively with my team members. There were some ground rules I implemented, such as maintaining regular hours, keeping my morning routine as if I was going to the office, and scheduling breaks to take care of non-work related tasks. I also had a standing meeting with my manager and team members every morning to discuss priorities for the day."

3. 3.

   What are some methods you use to self-review your work?

   How to Answer

   The interviewer is trying to evaluate your ability to check your own work and, as a result, save your manager precious time by catching mistakes before they reach his or her desk. Give specific examples of procedures you have implemented in previous roles to catch mistakes.
   
   

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Brian Schuchart wrote: "Being able to self-review my work and catch mistakes is something I take very seriously. A bookkeeper spends a lot of time in the details, so it is sometimes difficult to catch errors. Given this, I implement checklists that require me to tie out balances, subtotal transactions, and other to-dos before I move forward in the close process. In a way, I am auditing my work to catch any mistakes or errors. This not only saves me time in the long run, but also saves my manager time as there is less back and forth resolving issues."

4. 4.

   Do you have experience working with external auditors?

   How to Answer

   A key responsibility of a bookkeeper is to interact with and assist the external auditors. You may be asked to assist with walkthroughs, which are interviews where the auditor documents the processes you follow each month, as part of their assessment of internal controls. You may also be asked to either provide existing schedules (bank reconciliations, debt schedules, etc) or prepare schedules for the audit.
   
   

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Brian Schuchart wrote: "Yes, in my last role I interacted with our external auditors frequently in a variety of ways. First, as part of their assessment of internal controls, I would sit down with them to complete walkthroughs of the processes I follow each month. Additionally, I would prepare schedules that they would test as part of their audit. Examples of these schedules include balance sheet reconciliations and amortization schedules for our intangible assets. Finally, I would prepare draft footnote schedules for the audited financial statements. I believe it's very important to have a good working relationship with the organization's auditors."

5. 5.

   Do you have experience explaining complex accounting concepts to non-financial personnel?

   How to Answer

   Bookkeepers will frequently interact with other departments within the company. Many times, the employees in these departments do not have extensive knowledge of accounting concepts and terminology. This question is an opportunity to highlight your communication skills.
   
   

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Brian Schuchart wrote: "Yes, in my previous role I was able to interact with non-finance personnel when I would meet with the marketing team to review their results each month. They didn’t have a strong understanding of accounting principles, so I tried to ‘speak their language’ as much as possible when discussing their department’s results vs budget. I believe I have the ability to communicate effectively with all personnel in an organization."

6. 6.

   What is your comfort level with interacting and communicating with senior leadership?

   How to Answer

   A bookkeeper role is staff level but is unique in that the role interacts regularly with senior leadership. Highlight that you not only have experience presenting in front of leadership, but also that you are comfortable doing it. Be specific with what you presented. For example, monthly results, pitches for new initiatives, etc.
   
   

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Brian Schuchart wrote: "I have ample experience getting in front of leadership and presenting. In my previous role, I would present to the CEO, CFO and other senior leaders during our monthly Finance Review meetings. I always felt the need to prepare in advance for any questions that might arise, and would often circle back promptly on follow-ups that developed during those meetings."

7. 7.

   Are you proficient in Excel?

   How to Answer

   Excel proficiency is a must for not only a bookkeeper, but any role in accounting. At a minimum, a bookkeeper should be able to sort through large amounts of data and analyze that data using pivot tables.
   
   

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Brian Schuchart wrote: "Yes, I am proficient in Excel. I have used Excel extensively throughout my time in school, as well as in my previous role. For example, I used data sorting and filtering, as well as pivot tables to organize large amounts of data. Additionally, I have experience using V-Lookups and H-Lookups to pull together analysis for our external auditors. I have even dipped my toes into data visualization software such as Tableau, but that is a skill I would like to continue to nurture."

8. 8.

   Give some examples of non-cash expenses.

   How to Answer

   This is a technical question that tests whether you are able to identify non-cash expenses. Non-cash expenses are items that reduce profitability even though there isn't cash being paid in the period. A good example is depreciation expense, where the asset is purchased and then expense is recognized over its useful life.
   
   

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Brian Schuchart wrote: "Depreciation expense is the most common non-cash expense, as the cash is spent upfront and then expense is recognized over the life of the asset. Amortization expense is another example, and it is most commonly associated with items such as software, intangible assets and long-term contracts. It's important for a bookkeeper to be familiar with these items, as they are added back to net income on the statement of cash flows."

9. 9.

   What accounting software are you familiar with?

   How to Answer

   Speak specifically to the accounting systems you have used and some of the functions you performed. Many job descriptions specifically state which accounting software the company uses. If any event, make sure to highlight that you are quick to learn new software systems.
   
   

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Brian Schuchart wrote: "In my last role, I used SAP to book journal entries and run queries. As an independent contractor, I also used Quickbooks to complete monthly bookkeeping for various clients. I used that software to book journal entries, complete bank reconciliations, run monthly reports, and invoice customers. Since I have an underlying understanding of accounting, I am easily able to learn new software packages."

10. 10.

    Are you a detail oriented person?

    How to Answer

    The bookkeeper position requires great attention to detail, as the role is in charge of producing and maintaining meticulous financial records. It is expected that the bookkeeper can catch mistakes before reporting is provided to leaders of the organization.
    
    

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    1 Community Answer

    Anonymous Answer

    "Yes, I am a detail-oriented person. It is important to me to make sure I am reviewing and looking over everything. My strong organization skills help me stay efficient in being able to look at the details in every task."

    

    Cindy's Answer

    Great start. Can you give an example that will help show your detailed orientation in action?

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Brian Schuchart wrote: "Yes, I am extremely detail oriented. Part of what makes me a great bookkeeper is my organization skills and ability to self-review my work. I know that providing financial information containing errors creates doubt among leadership that the financial records are accurate. Therefore, I implement systems that allow me to check the details, such as monthly checklists and reviews."

11. 11.

    What are the steps involved in the accounting close process?

    How to Answer

    This question is used to assess whether your understanding of the accounting close process aligns with the organization's. Don't go into too much detail - rather, just hit the key steps and then ask how it compares or differs from the organization's process.
    
    

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Brian Schuchart wrote: "First and foremost, there needs to be a closing calendar so that deadlines are set for all departments. Next, all data must be gathered. This includes departments such as payroll and accounts payable preparing reports needed for journal entries. Next, all journal entries are booked. After journal entries are booked and reviewed, financial statements are prepared and balance sheet reconciliations are completed. Finally, the results are reviewed with leadership. Is there anything I described that differs from the process here at XYZ Corporation?"

12. 12.

    What are the steps involved in the bank reconciliation process?

    How to Answer

    Bank reconciliations are a key responsibility of any bookkeeper role. These days, most accounting software packages (such as Quickbooks) make the process easy. However, a bookkeeper should know the steps that are involved.
    
    

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Brian Schuchart wrote: "In order to complete a bank reconciliation, a bank statement or export file of bank activity needs to be obtained for the prior month. The bookkeeper should enter the ending bank balance in the accounting software. Next, the bookkeeper should check off the transactions that have cleared the bank. There may be some transactions that need to be added to the general ledger, such as bank charges. If the reconciliation ties out to the bank balance, the reconciliation is complete. If not, differences should be investigated."

13. 13.

    What are the different inventory valuation methods?

    How to Answer

    The goal of inventory valuation is to assign a monetary value to inventory the company owns that has not yet been sold. There are generally four accepted inventory valuation methods: Specific Identification, First In, First Out (FIFO), Last In, First Out (LIFO) and Weighted Average Cost. Each has its own advantages and disadvantages, so be prepared to briefly speak to each.
    
    

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Brian Schuchart wrote: "There are four widely accepted inventory valuation methods. The most clear cut is specific identification, where the cost of every item in inventory is specifically tracked. This method is best used when the company sells a low volume of high value items (such as rare cars). Next is First-In, First-Out, which presumes the first inventory purchased by the company is the first sold to the customer. Most companies use FIFO to value their inventory. Last-In, First-Out assumes the newest inventory in stock is the first sold. Finally, there's weighted average cost, which takes the cost of all products in inventory divided by the number of units. This method is used when the products a company sells are very similar."

14. 14.

    How do you mitigate and manage stress?

    How to Answer

    The life of a bookkeeper can be stressful, especially during busier times like monthly close and the annual audit. The interviewer wants to gain insight into how you react to stressful situations.
    
    

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Brian Schuchart wrote: "Due to tight deadlines and the demands of the bookkeeper role, stress is inevitable. However, there are steps I take to help mitigate stress. First, I try to be as organized as possible. I am constantly prioritizing my workload to make sure time-sensitive tasks are handled before they are due. Next, I try to leave work at work. When not at work, I enjoy hiking, cooking, and traveling. Being able to enjoy these activities makes me feel calmer and rejuvenated at work."

15. 15.

    What are the differences between accrual accounting and cash accounting?

    How to Answer

    Accrual basis accounting and cash basis accounting are the two most commonly used accounting methodologies. A bookkeeper should understand the differences between the two methodologies, and understand that most company’s use accrual accounting as it presents a clearer picture of financial health.
    
    

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Brian Schuchart wrote: "The main difference between accrual accounting and cash accounting is when revenue and expenses are recognized. Under cash basis accounting, revenue and expenses are recognized when cash is received and paid. Under accrual accounting, revenue is recognized in the period it is earned and expenses are recognized in the period they are incurred. While cash basis accounting is easier to implement, accrual accounting is used by most businesses and presents a clearer picture of a company’s overall financial health."

16. 16.

    What are the three main financial statements and what do they indicate about an organization’s financial position?

    How to Answer

    The three main financial statements are the income statement, balance sheet, and statement of cash flows. A bookkeeper should know the statements in detail, as they will likely be preparing all three each month.
    
    

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Brian Schuchart wrote: "The income statement shows profitability over a period of time by showing revenue less expenses. The balance sheet summarizes a company's assets, liabilities, and equity at a point in time. And a cash flow statement shows the net cash inflows and outflows over a period of time. Each statement is essential in order to gain insights into the financial health of an organization."

17. 17.

    How do you manage your manager? In other words, what steps do you take to make sure you get what you need from your boss and make both your lives easier?

    How to Answer

    Also known as 'managing up', 'managing your manager' is a soft skill that can be developed over time. It essentially means doing whatever is necessary to make your manager's job easier. Some clear-cut benefits of managing up include increased productivity and better working relationships between boss and employee.
    
    

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Brian Schuchart wrote: "I am a firm believer in the benefits of managing my manager. At the end of the day, I want to make the audit engagements we work on together run as smoothly as possible. One area where I really focus on is communicating and prioritizing workload on a regular basis. This ensures that I'm always working on the highest-priority items. Another thing that is crucial is understanding my manager's style. For example, do they like regular check-ins by email throughout the day, scheduled catch-up meetings, etc. Then, I tailor my communication to their style."

18. 18.

    What are Days Sales Outstanding, and what is indicated when days outstanding grows?

    How to Answer

    This is a question that gauges whether you understand metrics and can use them to catch trends in the business. Days Sales Outstanding is a metric that measures the health of Accounts Receivable. A high or growing balance indicates that there is a collections problem.
    
    

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Brian Schuchart wrote: "Days Sales Outstanding is an important metric that measures the health of Accounts Receivable. The metric indicates how many days of sales are hung up in accounts receivable at any given time. A growing balance indicates that there may be some issues with collections, which could lead to cash flow problems in the near future. Given this, collections should be monitored closely and adjusted accordingly, if DSO is growing."

19. 19.

    Why did you want to become a bookkeeper?

    How to Answer

    This question is a way for the interviewer to find out a little bit about what makes you tick. Be honest and direct - don't give a phony answer that the interviewer will see through.
    
    

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Brian Schuchart wrote: "Since I was young, I have always liked math and have been good with numbers. I took an accounting class in high school and really enjoyed it - the concepts came naturally to me. I also aspire to be a key contributor to an organization, and I know that the bookkeeper role is visible to leadership."

20. 20.

    What do you do when you don’t know the answer to something?

    How to Answer

    There is no shame in being stumped - it happens to everyone at all levels of an organization. This question is an opportunity to highlight your ability to be independent and resourceful.
    
    

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Brian Schuchart wrote: "I have no problem seeking solutions to questions I encounter. If I am unsure about the accounting treatment for a certain transaction, I can reach out to our external auditors for advice on the appropriate accounting treatment. If it’s something technical, such as using a new Excel formula, I am good at researching online and following examples."

21. 21.

    What have you done at your previous job to reduce costs or save time?

    How to Answer

    The interviewer wants to know if you have the ability to improve processes. Speak to a specific action you took that resulted in reduced costs, saved time or gained better insights.
    
    

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Brian Schuchart wrote: "My last role was bookkeeper for a small, established company. However, my predecessor did not have established procedures in place, and it sounded like he had made constant mistakes. One of the first things I did when I started was I made a monthly checklist that detailed all the steps I took during the monthly close. Included in these steps were checks I performed to self review my work. The checklist served as a cover sheet that I would hand off to my manager so that she would know exactly what steps I completed. This led to increased efficiency as we estimated it saved 4-6 hours a month in error corrections."

22. 22.

    Are you willing to work extra hours if needed during busier times?

    How to Answer

    The life of a bookkeeper is tied to the month-end close calendar, which could result in a schedule that is ‘lumpy’ and not a typical 9-5. The candidate should expect there to be some additional time worked during busier times and should highlight that they are flexible.
    
    

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Brian Schuchart wrote: "Yes, I am willing to work extra hours as needed. I understand that the work required ramps up during month-end close, tax filings and other busier times. I am happy to be flexible and work as needed to make sure the job gets done."

23. 23.

    What are Days Inventory on Hand, and what is indicated when days on hand grows?

    How to Answer

    This is a question that gauges whether you understand metrics and can use them to catch trends in the business. Days Inventory on Hand is a metric that measures the health of the inventory asset. A high or growing metric indicates that there are problems selling through inventory.
    
    

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Brian Schuchart wrote: "Days Inventory on Hand is an important metric that measures the health of Inventory. The metric indicates how many days of cost of goods sold are hung up in inventory at any given time. A low number of days indicates that the company is efficiently selling through inventory. A growing number of days indicates that there may be some issues with sell-through, which could lead to obsolescence issues in the future. Given this, sales strategy should be adjusted if Inventory DOH is growing."

24. 24.

    What are Days Payable Outstanding, and what is indicated when days outstanding grows?

    How to Answer

    This is a question that gauges whether you understand metrics and can use them to catch trends in the business. Days Payable Outstanding is a metric that measures the health of accounts payable. A high or growing metric indicates that you are able to pay your vendors on increasingly favorable terms, which is beneficial to cash flow management.
    
    

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Brian Schuchart wrote: "Days Payable Outstanding is an important metric that measures the health of accounts payable. The metric indicates how many days of expenses are hung up in accounts payable at any given time. A low number of days indicates that the company is paying their bills quickly. A growing number of days indicates that the company is taking advantage of favorable vendor terms, which helps with cash flow management. As long as bills are not overdue, it is a sound strategy to have longer payment terms with vendors."

25. 25.

    What are some examples of internal controls that impact the bookkeeper role?

    How to Answer

    Internal controls are rules or procedures that are put in place to protect financial and accounting information and to prevent fraud. Some are required by laws and regulations, while others are implemented to protect the company. There are many examples of internal controls that can impact the bookkeeper role, including preventative controls (segregation of duties, chains of approval, physical control of assets (locks on doors), training programs) and detective controls (monthly reconciliations, budget to actual comparisons, inventory counts).
    
    

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Brian Schuchart wrote: "There are many examples of internal controls that would impact my role. Preventative controls like segregation of duties and approval requirements will limit the activities I can perform. I will also be involved in detective internal control procedures, such as monthly reconciliations of balance sheet accounts and budget to actual comparisons."

26. 26.

    What is depreciation expense, and how is it recognized?

    How to Answer

    Depreciation is the gradual expensing of the cost of a fixed asset over its useful life. Depreciation expense aligns with the accrual method of accounting, as the total cost of the asset is spread over a period of time, rather than expensed in full when purchased. Most companies use straight-line depreciation, which spreads the cost evenly over the asset's useful life.
    
    

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Brian Schuchart wrote: "Depreciation expense is the portion of a fixed asset cost that is being used up during the current period. When a fixed asset is purchased, the cost is capitalized on the balance sheet. Each period, depreciation expense is recognized which reduces the asset balance. While there are many ways to depreciate an asset, most companies use the straight-line method of depreciation."

27. 27.

    Do you have any experience with invoicing vendors?

    How to Answer

    A common responsibility of a bookkeeper is to invoice vendors and ensure that balances are paid timely. In your response, be sure to highlight that you know the steps of the invoicing process and possess the qualities needed to perform the duties.
    
    

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Brian Schuchart wrote: "Yes, in my previous role, I was responsible for managing the accounts receivable process from start to finish. First, I would produce an invoice each time a service was performed and record the sale to the general ledger. Next I would send out the invoices to the clients. At my previous company, clients were invoiced both electronically and by mail. When payments were made, I would apply the payments against the client's outstanding invoices. Finally, I would follow up with customers who had not paid their invoices timely. I am very detail oriented and organized, which I believe are necessary to perform the invoicing process effectively."

28. 28.

    Imagine that you are producing a month-end report and notice the ledger is off. What would you do to rectify this situation?

    How to Answer

    This question is being asked to assess your self-review skills, as well as your problem solving skills. First discuss how you would discover the error during your review. Then, cover the steps you would take to resolve.
    
    

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Brian Schuchart wrote: "I pride myself on self-reviewing my work. During month-end, I follow a checklist that helps catch errors. If I discovered an error during my review, I would first check formulas to make sure the report itself is footing correctly. If there is nothing wrong with the report itself, I would then drill down to the account level by searching for the amount of the error. If the error was not in the account ledger, I would then drill down to the source document level. I enjoy problem solving and would find the issue efficiently."

29. 29.

    Which statements or reports would you prepare as part of your month-end close package?

    How to Answer

    A bookkeeper is often responsible for producing month-end reports. An income statement and balance sheet are almost always produced, as well as a statement of cash flows. Additionally, there may be specific reports that a company can use, such as key performance indicators (KPIs), and customer/vendor detail.
    
    

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Brian Schuchart wrote: "Month-End Reporting should give leadership the information they need to see how the business is performing. To achieve this visibility, there are some core reports I would include in the reporting package each month. First and foremost, I would include a balance sheet, income statement and statement of cash flows. For supplemental schedules, I would include a summary of key performance indicators, as well as a sales breakdown. Are there any other schedules that leadership at this company would like to see each month?"

30. 30.

    True or False: For vendor invoices, it is always best to pay the bill as soon as possible.

    How to Answer

    This is a bit of a trick question, and tests your understanding of cash flow. As a general rule of thumb, it is almost always better to receive cash from customers as quickly as possible and pay vendors as slowly as possible (while still adhering to the payment terms). The goal of doing this is to maximize cash on hand which provides flexibility for the company.
    
    

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Brian Schuchart wrote: "That statement is false. When it comes to Accounts Payable and the payment of invoices, it is better to use the vendor payment terms to our advantage. If we pay bills as soon as they are received, that ties up cash that could have been used for other purposes. The only time it may be advantageous to pay sooner than the due date is if there is a discount for paying earlier."