What have you done recently to become a better accountant?

"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 fixed asset accounting. I believe I could use the knowledge obtained from this course in the fixed asset accountant role. Once in the role, I would also seek out continuing education that allows me to apply skills acquired to help the organization."

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 of when you have acquired new skills.

How do you mitigate and manage stress?

"Due to tight deadlines and the demands of the accountant 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 while at work."

The life of an accountant 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.

Are you open to travel with this role?

"As a fixed asset accountant, I understand I will be involved in asset verification procedures at various warehouses throughout the East Coast. The job description for this position mentioned 25% travel, and I am very comfortable with that. I think the travel will be a great way to get out of the office and understand the operations of the organization."

The fixed asset accountant position may require some travel, as the role will likely be involved in procedures that may require visits to facilities where fixed assets are located. Most job descriptions mention the travel required, so be sure to align your response with that requirement.

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

"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."

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

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

"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 made constant mistakes. One of the first things I did when I started was make 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."

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 better insights gained.

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

"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."

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.

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

"Being able to self-review my work and catch mistakes is something I take very seriously. An accountant 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 double check certain items 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."

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.

Why did you want to become an accountant?

"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 fixed asset accountant role is visible to leadership."

This question is a way for the interviewer to find out a little bit about your interests and background. Be honest and direct; don't give a phony answer that the interviewer will see through.

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

"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 promptly follow-up on anything that developed during those meetings."

A fixed asset accountant 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.

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?

"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 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 prefer regular check-ins by email throughout the day, scheduled catch-up meetings, etc. Then, I tailor my communication to their style."

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.

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

"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."

Accountants 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.

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

"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."

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.

Are you a detail-oriented person?

"Yes, I am extremely detail oriented. Part of what makes me a great accountant 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."

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

Please rank these asset classes in order from shortest useful life to longest: Leasehold improvements, computer, and furniture.

"Computers usually have the shortest useful lives at three to five years. After that, technology begins to become obsolete and should be replaced. Furniture commonly has a useful life of five to ten years. Finally, leasehold improvements have the longest useful lives as they are permanent changes to a physical space, such as walls. Typically, the useful life of a leasehold improvement is anywhere from ten years to forty years."

All fixed assets are capitalized and then depreciated over their useful lives (the amount of time an asset can be in service before it is considered obsolete). This question tests whether you have a basic understanding of the useful lives of some common asset classes.

What are some examples of internal controls that impact fixed assets?

"Internal controls are important for fixed assets. Some internal controls focus on mitigating physical risks, such as periodically verifying the existence and condition of fixed assets. Another set of internal controls focus on mitigating financial risks, such as keeping meticulous records of all fixed asset purchases. Having accurate fixed assets helps ensure a more accurate balance sheet, which is vital for any company."

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. Some internal controls that relate specifically to fixed assets include those that mitigate physical risks (verify the existence, condition and custody of fixed assets) and financial risks (keeping records of all asset purchases).

What types of costs should be capitalized when an asset is purchased or acquired?

"While the purchase price of a fixed asset is typically the main cost that should be capitalized when purchasing an asset, there are other costs associated with the asset acquisition that should also be included in the capitalized cost. For example, delivery charges, sales tax, installation and labor should be added on to the asset price and depreciated over the useful life of the asset."

Many people think the purchase price of a fixed asset is the only cost that should be capitalized when purchasing an asset. However, there are other costs associated with the purchase that should also be capitalized. These costs include sales tax and delivery, as well as installation and labor costs, if it is a larger asset.

What is the fixed asset turnover ratio and how is it calculated?

"The fixed asset turnover ratio is a simple calculation that helps measure a company's effectiveness with using its fixed asset investments to help generate sales. It is calculated by taking Net Sales divided by average fixed assets balance over a certain period. A higher ratio indicates that a company is effectively using its fixed assets."

The fixed asset turnover ratio (FAT) measures a company's ability to generate sales from its fixed-asset investments by comparing net sales to fixed assets. A higher ratio indicates that a company is effectively using its fixed assets to generate sales.

After acquisition of a fixed asset, are there any instances when additional costs related to the fixed asset can be capitalized?

"When assessing whether a subsequent cost related to a fixed asset should be capitalized, I follow the Bigger, Better, Longer rule. If the cost makes the asset bigger, such as an addition to a building, it should be capitalized. If the cost makes the fixed asset better, such as an enhancement to equipment that makes it run more efficiently, it should be capitalized. If the cost extends the useful life of the asset, it should be capitalized. Any other cost should be treated as repairs and maintenance, and should be expensed in the period incurred."

This question tests your knowledge of the difference between regular repairs and maintenance and improvements to fixed assets that would warrant capitalization. If a cost is incurred to return a fixed asset to its original working condition, it should be expensed as repairs and maintenance. For example, if a machine breaks down, the repair cost should be expensed. If the costs incurred improve the asset, the cost should be capitalized.

What are some examples of startup costs that should be capitalized when a new business is launching?

"When a business is getting ready to launch, most of the costs incurred during the startup phase should be expensed, including legal fees, branding and licenses. However, some are permitted to be capitalized such as trademarks, copyrights and patents. These items are typically capitalized and then amortized straight-line over fifteen years."

When a new business is launching, there are a couple startup costs that can be capitalized and expensed over time vs all at once, when incurred like normal expenses. The capitalized startup costs are typically amortized over fifteen years. Some examples of costs that can be capitalized include acquisitions of trademarks and patents.

What is the Sum-of-the-Years Digits Method of depreciation and what is the reasoning for using the method, as opposed to standard depreciation?

"The Sum-of-the-Years Digits Method is an accelerated method of recognizing depreciation expense on an asset. Under this method, the highest depreciation expense is recognized in the first year, and the lowest in the last year. The reasoning for using the Sum-of-Years method is that the fixed asset is most useful (and therefore most valuable) in the early years of its useful life. The value then diminishes over time."

The Sum-of-the-Years Digits (SYD) is an accelerated method for calculating depreciation. In most cases, assets are depreciated evenly over the useful life of the asset. However, SYD allocates the highest depreciation expense in the first year and the lowest in the last year. The reasoning is that an asset is most useful in the first years of its useful life. Picture the purchase of a new car, where the value drops quickest in the first year or two of ownership.

Are you proficient in Excel?

"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."

Excel proficiency is a must for not only a fixed asset accountant, 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.

What accounting software are you familiar with?

"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."

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. In any event, make sure to highlight that you are quick to learn new software systems.

What is an impairment of a fixed asset and what is the accounting treatment?

"Impairment of fixed assets occurs when the fair value of owned fixed assets drop below the carrying amount of the asset on the balance sheet. When this happens, a write-off of the difference is recorded. It is important to periodically assess whether material fixed assets are impaired to the point where the value cannot be recovered."

An asset impairment occurs when there is a drop in the fair value of an asset below its recorded cost. The accounting treatment is to write off the difference between the fair value and the recorded cost of the asset. Impairment occurs when the decline in value is not recoverable.

How are fixed asset purchases accounted for to comply with the matching principle (recognizing expense in the period incurred)?

"Fixed assets are unique in that they are purchased at a given time, but used for years and sometimes decades after purchase. To align with accrual accounting principles, an accountant must estimate the useful life of a fixed asset in months. Then, each month a proportionate depreciation expense is recognized for each period an asset is in use."

This is a question that gauges whether you understand why depreciation expense is recorded for fixed assets. Depreciation expense is recognized evenly over the useful life of a fixed asset so that a proportionate expense is recorded in each period the asset is in use.

What are the steps involved in the accounting close process?

"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?"

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.

Do you have experience working with external auditors?

"Yes, in my last role I interacted with our external auditors frequently and 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."

A key responsibility of an accountant 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.

Why is depreciation expense considered a non-cash expense?

"Depreciation expense is the most common non-cash expense. The reason it is considered non-cash is because the cash outflow occurs up front when the asset is purchased. However, depreciation expense is recognized over the useful life of the asset to comply with accrual accounting principles. On the Statement of Cash Flows, depreciation expense is an add-back to net income to recognize the fact that it is non-cash."

This is a technical question that tests whether you are able to explain why depreciation expense is considered non-cash. The reason is that when a fixed asset is purchased, the cash outflow occurs at that time. However, depreciation expense is recognized over the useful life of the asset.

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

"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. 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."

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

What are the differences between accrual accounting and cash accounting?

"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."

Accrual basis accounting and cash basis accounting are the two most commonly used accounting methodologies. Any accountant should understand the differences between the two methodologies and understand that most companies use accrual accounting, as it presents a clearer picture of financial health.

What is Section 179 Expense?

"Section 179 Expense was instituted by the United States government to encourage companies to buy equipment and invigorate the economy. Section 179 allows a company to deduct the full purchase price of equipment in the year of purchase, as opposed to depreciating over the useful life of the asset, as required by financial accounting standards. Section 179 is a nice option for companies that invest in themselves to reduce taxable income."

Section 179 Expense is a common IRS-approved method to recognize full depreciation of fixed assets in the year of purchase. There is a limit on the amount of equipment that qualifies for Section 179 in a given year (up to $1,050,000 in 2021). It is advisable to mention how Section 179 expense differs from straight-line depreciation.

Fixed Asset Accountant Interview Questions

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1. What have you done recently to become a better accountant?
2. How do you mitigate and manage stress?
3. Are you open to travel with this role?
4. Are you willing to work extra hours, if needed, during busier times?
5. What have you done at your previous job to reduce costs or save time?
6. What do you do when you don't know the answer to something?
7. What are some methods you use to self-review your work?
8. Why did you want to become an accountant?
9. What is your comfort level interacting and communicating with senior leadership?
10. 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?
11. Do you have experience explaining complex accounting concepts to non-financial personnel?
12. How would you handle working in an increasingly remote work environment?
13. Are you a detail-oriented person?
14. Please rank these asset classes in order from shortest useful life to longest: Leasehold improvements, computer, and furniture.
15. What are some examples of internal controls that impact fixed assets?
16. What types of costs should be capitalized when an asset is purchased or acquired?
17. What is the fixed asset turnover ratio and how is it calculated?
18. After acquisition of a fixed asset, are there any instances when additional costs related to the fixed asset can be capitalized?
19. What are some examples of startup costs that should be capitalized when a new business is launching?
20. What is the Sum-of-the-Years Digits Method of depreciation and what is the reasoning for using the method, as opposed to standard depreciation?
21. Are you proficient in Excel?
22. What accounting software are you familiar with?
23. What is an impairment of a fixed asset and what is the accounting treatment?
24. How are fixed asset purchases accounted for to comply with the matching principle (recognizing expense in the period incurred)?
25. What are the steps involved in the accounting close process?
26. Do you have experience working with external auditors?
27. Why is depreciation expense considered a non-cash expense?
28. What are the three main financial statements and what do they indicate about an organization's financial position?
29. What are the differences between accrual accounting and cash accounting?
30. What is Section 179 Expense?

Fixed Asset Accountant Interview Questions

1. What have you done recently to become a better accountant?

2. How do you mitigate and manage stress?

3. Are you open to travel with this role?

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

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

6. What do you do when you don't know the answer to something?

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

8. Why did you want to become an accountant?

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

10. 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?

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

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

13. Are you a detail-oriented person?

14. Please rank these asset classes in order from shortest useful life to longest: Leasehold improvements, computer, and furniture.

15. What are some examples of internal controls that impact fixed assets?

16. What types of costs should be capitalized when an asset is purchased or acquired?

17. What is the fixed asset turnover ratio and how is it calculated?

18. After acquisition of a fixed asset, are there any instances when additional costs related to the fixed asset can be capitalized?

19. What are some examples of startup costs that should be capitalized when a new business is launching?

20. What is the Sum-of-the-Years Digits Method of depreciation and what is the reasoning for using the method, as opposed to standard depreciation?

21. Are you proficient in Excel?

22. What accounting software are you familiar with?

23. What is an impairment of a fixed asset and what is the accounting treatment?

24. How are fixed asset purchases accounted for to comply with the matching principle (recognizing expense in the period incurred)?

25. What are the steps involved in the accounting close process?

26. Do you have experience working with external auditors?

27. Why is depreciation expense considered a non-cash expense?

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

29. What are the differences between accrual accounting and cash accounting?

30. What is Section 179 Expense?