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 inventory accounting. Since your organization is a retailer, I believe I could use the knowledge obtained from this course in the inventory 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 where you have acquired new skills.

What is your comfort level with 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."

An inventory 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.

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 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 it 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.

How do you mitigate and manage stress?

"Due to tight deadlines and the demands of the inventory 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 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. The candidate should expect there to be some additional time worked during busier times and should highlight that they 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 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 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.

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 inventory 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.

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 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 prefer regular check-ins by email throughout the day or scheduled catch-up meetings, etc. I try to 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.

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 inventory 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 bookkeeper can catch mistakes before reporting is provided to leaders of the organization.

Are you open to travel with this position?

"As an inventory accountant, I understand I will be involved in the physical inventory counts at various warehouses throughout the Northeast. 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 inventory accountant position may require some travel, as the role will likely be involved in physical inventory counts. These counts are typically performed at retail and warehouse locations. Most job descriptions mention the travel required, so be sure to align your response with that requirement.

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.

What are some examples of internal controls that impact inventory?

"There are many examples of internal controls that would impact my role. For example, there are audit controls that help with auditing the inventory balance, such as physical inventory counts and obsolescence reviews. Other controls center around asset security, such as locks and security clearances. Finally, there are tracking controls such as barcode setup and inventory numbering systems."

Internal controls for inventory is vital for businesses of any size, as the company needs to make sure they have goods available to sell to their customers. There are internal controls that help with tracking (bar-codes, inventory numbers), security (locks, security codes), and audits (physical inventory counts, obsolescence reviews).

What is obsolescence expense?

"Obsolescence occurs when inventory becomes obsolete. As a result, the inventory cannot be sold or is expected to be sold at discounted pricing. The obsolescence reserve is a contra asset on the balance sheet that reduces the gross inventory to its expected value net of obsolete inventory. Obsolescence expense on the income statement reflects the periodic changes in that reserve balance."

Obsolescence refers to inventory that no longer has value or has reduced value. It is inventory that either cannot be sold or will be sold at a steep discount. The interview candidate should be able to define obsolescence and also speak to its accounting treatment.

Imagine you are reviewing inventory balances vs last year. What would you expect to happen to ending inventory, if sales were lower than last year, and receipts were higher than last year?

"In this example, I would expect inventory to grow at a higher rate than it did last year. Higher receipts means more product coming into inventory, and lower sales means fewer products leaving inventory. This would be a concern to me, as higher inventory balances would indicate a higher obsolescence risk."

This is a question that gauges whether you understand how different key metrics drive inventory changes. In this specific example, lower sales and higher receipts would both cause inventory to grow vs last year.

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 an inventory accountant, but any role in accounting. At a minimum, an accountant should be able to sort through large amounts of data, and analyze that data using pivot tables.

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

"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."

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.

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

What are the different inventory valuation methods?

"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."

The goal of inventory valuation is to assign a monetary value to inventory that 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.

What are the steps involved in a physical inventory count?

"First, the count must be planned. This includes setting dates, identifying inventory to count, training staff, and ensuring the appropriate scanners and other technology is set up. Next, on the date of the count, all inventory activities must be frozen so that the records are static. Then, the physical inventory count is completed using printed count sheets. Finally, any discrepancies are investigated and resolved."

Periodic inventory counts are crucial for businesses with material inventory value. The physical count ensures that the value of inventory, as reflected on the books, is materially close to the actual value. Most audits require inventory counts, and companies often view the counts as good business practice.

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 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.

Inventory Accountant Interview Questions

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1. What have you done recently to become a better accountant?
2. What is your comfort level with interacting and communicating with senior leadership?
3. What are some methods you use to self-review your work?
4. How do you mitigate and manage stress?
5. Are you willing to work extra hours if needed during busier times?
6. What have you done at your previous job to reduce costs or save time?
7. What do you do when you don't know the answer to something?
8. Why did you want to become an accountant?
9. 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?
10. Are you a detail-oriented person?
11. Are you open to travel with this position?
12. Do you have experience explaining complex accounting concepts to non-financial personnel?
13. How would you handle working in an increasingly remote work environment?
14. What are some examples of internal controls that impact inventory?
15. What is obsolescence expense?
16. Imagine you are reviewing inventory balances vs last year. What would you expect to happen to ending inventory, if sales were lower than last year, and receipts were higher than last year?
17. Are you proficient in Excel?
18. What are the differences between accrual accounting and cash accounting?
19. What are 'Days Inventory on Hand', and what is indicated when days on hand grows?
20. What are the three main financial statements, and what do they indicate about an organization's financial position?
21. What accounting software are you familiar with?
22. What are the different inventory valuation methods?
23. What are the steps involved in a physical inventory count?
24. What are the steps involved in the accounting close process?
25. Do you have experience working with external auditors?

Inventory Accountant Interview Questions

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

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

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

4. How do you mitigate and manage stress?

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

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

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

8. Why did you want to become an accountant?

9. 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?

10. Are you a detail-oriented person?

11. Are you open to travel with this position?

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

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

14. What are some examples of internal controls that impact inventory?

15. What is obsolescence expense?

16. Imagine you are reviewing inventory balances vs last year. What would you expect to happen to ending inventory, if sales were lower than last year, and receipts were higher than last year?

17. Are you proficient in Excel?

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

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

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

21. What accounting software are you familiar with?

22. What are the different inventory valuation methods?

23. What are the steps involved in a physical inventory count?

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

25. Do you have experience working with external auditors?