15 Common Bookkeeping Interview Questions

Knowing what to expect during the interview can make all the difference. Here is a list of the 15 questions you are likely to be asked during your bookkeeper job interview.

1. What accounting software do you have experience with?

The purpose of this question is to assess the candidate's experience with common bookkeeping/accounting software to determine if they will require further training. 

"I have used a variety of different accounting software, such as, Intuit QuickBooks, Sage cloud, and Xero. I have the most experience with Intuit QuickBooks, but I am proficient with each platform. I am also happy to learn how to use any other software you prefer.“

2. In your opinion, is accrual or cash basis reporting a better option for business management?

I think that each reporting method has its own merits. For example, when it comes to tax season, it is better to have cash basis reporting because it makes the process easier. However, accrual basis reporting gives the management a clearer financial report than cash basis. Because of the benefits of each, I think it is best when the tax accountant uses cash basis, but the accounting bookkeepers use an accrual basis reporting.

3. What credentials do you have that make you a good Bookkeeper?

The purpose of this question is to assess the candidate's credentials to ensure they would be a good fit for your team.

"I completed the bookkeeping program at Fintech College of Business and Technology which taught me about accounting principles, financial statements, preparing tax returns, and much more. This allowed me to become a certified Bookkeeper with the Canadian Bookkeepers Association. I have also been a Bookkeeper for five years with a small non-profit organization that taught me a lot about the role and the industry.".

4. What are the three main financial reports?

This question will test the candidate's technical knowledge of the three financial statements and their purpose.

"The three financial statements are income statements, balance sheets, and cash flow statements. Income statements outline the company's annual and/or quarterly earnings. Balance sheets display the company's assets, net worth, and liabilities. While cash flow statements show the company's earnings from their financing, investments, and operations.“

5. Can you explain a typical balance sheet?

There are three main components to a balance sheet: liabilities, assets and equity. The common accounting equation is assets equals liabilities plus equity. The purpose of a balance sheet is to showcase the company's current net worth and how the business is spending money. This can be an invaluable tool when financial analysis is necessary.

6. What were your main bookkeeping responsibilities in your previous role?

The aim of this question is to assess the candidate's experience and understanding of the role.

"I worked for a family-owned grocery store in my previous role. There, I was mainly responsible for recording and monitoring all financial transactions, paying suppliers, and creating financial statements. When it was time to submit our taxes, I would work with an accountant to complete and submit tax forms.“

7. What sort of financial reports did you have to prepare at your last job?

I was the only bookkeeper at my last job, so I had to keep all of the necessary records. I was in charge of keeping the cash, accounts receivable, accounts payable, loans payable, payroll expenses, inventory, sales and expense accounts reports throughout my tenure with the company. Being the only bookkeeper had its own challenges and benefits, but I did enjoy being able to get so familiar with the major financial reports.

8. In Your Opinion Is There Any Difference Between Salaries And Wages?

The hiring team wants to find out whether you are familiar with bookkeeping. Begin by defining the two terms and state how you use them while completing bookkeeping entries.

The terms salary and wages are interchangeably used in bookkeeping. The wages apply to the nonexempt hourly staff and salary applies to the exempt staff. Additionally, wages are determined by multiplying the hourly rate payment by the number of hours worked during the accounting period. Salary is determined by dividing the worker’s annual compensation by the accounting period (week, bi-weekly or monthly).”

9. If your ledger was off, what would you do?

The aim of this question is to test the candidate's technical abilities to find and fix errors in their work.

"If my ledger is off, I always follow three steps to find the error. The first is to check my math to make sure I didn't just add the totals up incorrectly. Then, I'll go through my account balances and ensure I input them into the ledger correctly. If I input everything correctly, I then have to go through my general transaction entries journal and compare it to receipts, e-mails, or other documents to see which is incorrect.“

10. What is the difference between accounts receivable and accounts payable?

The aim of this question is to test the candidate's industry knowledge of common terms.

"Accounts payable is the money a business owes to investors, debtors, or suppliers. This makes it a liability. On the other hand, accounts receivable is the money that customers owe a business for buying their products or services. This makes it an asset to the company.“

11. How do you meet strict deadlines?

The aim of this question is to assess the candidate's ability to adhere to deadlines with good time management and organizational skills.

"To meet strict deadlines, especially around tax season, I keep detailed notes in my planner and calendar. Whenever I get a new task, I will immediately put it into my planner so I don't forget about it. This helps me see all my deadlines in one place and plan my schedule accordingly. I always aim to finish tasks a day or two before they're due so I have extra time to fall back on. This ensures I do everything on time, if not earlier."

12. What do you do to stay updated with the accounting industry

The aim of this question is to determine whether the candidate is passionate about their learning and able to improve upon it themselves. "I love to read, so I stay updated with the accounting industry by reading magazines and news articles. Pivot Magazine and Accounting Today are two of my favorites. I also attend accounting conferences or seminars when I can to learn from industry professionals. I recently attended the Canadian Academic Accounting Association's annual conference and learned a lot."

13. What is the biggest mistake you've made in your work and what did you learn from it?

The aim of this question is to assess the candidate's ability to admit their mistakes and learn from them.

"The biggest mistake I made in my work was mixing up my accounts receivable and accounts payable files for the first few months of a new job. I thought we were earning much more than we actually were, and I wasn't following up on a lot of our outstanding payments due. Once I realized this, I corrected all my errors and followed up on all the payments due, but it took at least a month to get back on track. I learned to always double-check my files and entries. I also label my files very clearly now."

14. What have you done recently to grow professionally as a bookkeeper?

I recently created a professional development plan. I have been a bookkeeper for a little over five years, and I felt like I was starting to get complacent, which in my opinion is bad for any professional. I sat down and made a development plan. In order to grow professionally, I had to consider my career goals. I love being a bookkeeper, but in the future I would like to have more responsibilities. I started pursing my Certified Public Accountant certification with the Canadian Institute of CPAs. Once I complete that, I will be sure to keep my Continuing Professional Education membership up to date.

15. In your last position, did you have to interact with vendors and clients?

I was the main financial contact for both vendors and clients. This meant I was getting notices of bills the business had to pay and I was sending out notices to the clients when their bills were due. This interaction gave me a chance to hone my communication skills and work on being more personable.