Finance Manager Mock Interview

Question 18 of 25 for our Finance Manager Mock Interview

Finance Manager was written by Brian Schuchart on January 1st, 2021. Learn more here.

Question 18 of 25

What is your approach to budgeting, forecasting and other forward-looking projections?

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Answer Example
Community Answers

Budgeting and forecasting are core responsibilities of the Finance Manager position. Forward looking projections are part art and part science, so this question is being asked to learn about your thought process when there is some gray area.

"As Financial Analyst, I was responsible for the annual budget for several divisions, as well as reforecasting results throughout the year. As a starting point, my approach is to always use last year as a benchmark. Then, I apply any changes that I am aware of. For example, are there changes in current trends that need to be taken into account? Knowing that budgeting and forecasting is partially subjective, I try to have sound reasoning behind my methodology so that I am able to support my projections."

Anonymous Answer

"I use zero-based budgeting as it provides a reliable forecast. Unlike incremental budgeting, where there could be a slack, ZBB is also flexible, as it allows budget adjustment from the previous year if budgets were not accurate."

Chad's Feedback

Good answer! You have clearly outlined your preferred approach to budgeting, which is a core responsibility of the position you are interviewing for. Consider discussing the advantages of ZBB further, along with the ways you utilize the process for forecasting and other forward-looking projections.

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How to Answer: What is your approach to budgeting, forecasting and other forward-looking projections?

Advice and answer examples written specifically for a Finance Manager job interview.

18. What is your approach to budgeting, forecasting and other forward-looking projections?

How to Answer

Budgeting and forecasting are core responsibilities of the Finance Manager position. Forward looking projections are part art and part science, so this question is being asked to learn about your thought process when there is some gray area.

Written by Brian Schuchart on January 1st, 2021

Answer Example

"As Financial Analyst, I was responsible for the annual budget for several divisions, as well as reforecasting results throughout the year. As a starting point, my approach is to always use last year as a benchmark. Then, I apply any changes that I am aware of. For example, are there changes in current trends that need to be taken into account? Knowing that budgeting and forecasting is partially subjective, I try to have sound reasoning behind my methodology so that I am able to support my projections."

Written by Brian Schuchart on January 1st, 2021

Anonymous Interview Answers with Professional Feedback

Anonymous Answer

"I use zero-based budgeting as it provides a reliable forecast. Unlike incremental budgeting, where there could be a slack, ZBB is also flexible, as it allows budget adjustment from the previous year if budgets were not accurate."

Chad's Feedback

Good answer! You have clearly outlined your preferred approach to budgeting, which is a core responsibility of the position you are interviewing for. Consider discussing the advantages of ZBB further, along with the ways you utilize the process for forecasting and other forward-looking projections.

Next Question