Bookkeeping Questions and Answers

An accountant, on the other hand, is someone who analyzes financial information. If your new client already uses one, it’s best to know the particular system. For example, if they use QuickBooks, you must inquire whether it’s the desktop or QuickBooks online version. Depending on how long the company has been in existence, it might already have a bookkeeping system in place.

One company may prefer to have a detail-oriented bookkeeper while another company may want someone strategically-minded. Most candidates will claim to be whatever style you need, but it’s worth diving deeper into the candidate’s strengths and weaknesses in order to understand his true suitability. It’s not enough for bookkeepers to offer “stellar service.” Rather, they should be able to clearly articulate what service levels they Bookkeeping questions can offer in terms of delivery times and accuracy benchmarks. They should also articulate what happens if those promises are not met. A lot of these questions are also not specific to bookkeeping, but are instead extremely useful to ask in any interview situation. Personality is of huge significance when selecting a candidate, because, well, you want to get along with the people you work with and make sure they’ll fit in the team.

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I’m Stacy, an entrepreneur, strategist, and adventurer dedicated to helping you craft your dream business out of your skills & passions. Because I think you should love your life and that’s kind of hard to do if you don’t love your work. You can purchase things for your home office (furnishings, technology, supplies, etc.) through your business. I have an expense category for my home office in my Chart of Accounts so I can see how my spending in this area stacks up and make wiser decisions about investing in this area of my home.

Apart from building rapport, this question can help you learn more about the company. For example, issues like business operations, its vision and mission, and employee management could come up in such discussions, giving you a better glimpse of what you will be dealing with. When they think about success, especially the success of their business, what comes to mind? This is where the clients open up about their dreams, goals, and ideas. While this sounds like a personal question, it helps build a personal connection with the client.

What made you want to be a bookkeeper?

In a similar vein to the previous question, this will allow you to assess a candidate’s knowledge of your company and determine their attitude and work ethic. This question also gives interviewees a chance to sell themselves to you and show their motivation and ambition. You can use this question to see if a candidate has researched your company, and also determine whether they would be a good fit for the business.

One of the ways that you can help yourself find the right bookkeeper to help with your basic accounting and clerical tasks is to go into the interview process with a game plan. Over 6,000 accountants and bookkeepers use Jetpack Workflow to standardize client work, automate deadlines, and track firm progress. Some companies will only operate with one bank account; others will have two or more for various reasons. The more bank accounts, the greater the workload in terms of data entry and bank reconciliations. The sooner you know how many accounts the company has, the better your bookkeeping firm can prepare for the workload.

What can you tell us about your business?

By asking this question, you can get a good sense of a candidate’s career aspirations, and whether they are looking to develop within your company or they only view your position as temporary. This allows the candidate to show a more humble side by admitting they’re not perfect. More crucially, though, it allows them to showcase their problem-solving and self-management capabilities. Additionally, by asking the candidate about recent examples, you’ll be able to assess whether they are constantly looking for new opportunities to develop their skills.

It also helps you get right to the point and zero in on opportunities to address necessary concerns. All you have to do is transfer money from your business bank account to your personal bank account by your way of choosing. PP&E stands for property, plant, and equipment, or a company’s physical, long-term assets, such as buildings, furniture, and vehicles. You should account for any depreciation and consider any capital put into these assets, such as additions or upgrades. Once the interviewer has an idea of your background, they’ll want to learn about your relevant skills and experience by asking you technical and knowledge-based accounting interview questions.

What is the balance sheet equation?

The balance sheet is a list of an entities assets and liabilities. Below are the questions and answers to my recent ‘Basic Bookkeeping Questions & Answers – Exam Prep #1’ video. Without money, you can’t continue to pursue your entrepreneurial dream! If you extend credit to customers, your business success may depend on when customers finally pay you. And sometimes, it can be like pulling teeth to get customers to pay you on time. To file your business tax return, you need your Taxpayer Identification Number (TIN), financial records, and the proper tax return form.

• Depending on how long the company has been in existence, it might already have a bookkeeping system in place.
• Having a certified public accountant (CPA) license can sometimes give you an edge over other applicants, but don’t be ashamed to tell the truth.
• Frequently, these goods or services are purchased on credit, meaning the customer did not pay for them immediately.

Accounts payable are liabilities — the company owes this money to someone else for goods or services. This question aims to see how well you can communicate complex information to people unfamiliar with the jargon of accounting. One way to answer this is to describe a specific situation where you used storytelling skills and visual aids to explain a new procedure to managers in a different department.

ways skills-based hiring can help you identify hidden gems in your organization

Your business is growing, you have an ambitious agenda, and you’re ready to reach the next level. As businesses evolve their accounting responsibilities become more complex and time-consuming. Ambitious companies end up spending a lot more time and focus on accounting when they would rather concentrate on core skills and long-term goals instead. Partnering with an outsourced bookkeeper empowers these companies to hand off routine workloads while getting strategic insights from a trusted expert. Below, you’ll find 25 interview questions for bookkeepers that you can use to evaluate a candidate’s knowledge and personality. At FIA, we assign each monthly or quarterly service client a dedicated Account Manager who oversees the bookkeeping, payroll and sales tax activities.

• The earlier your client knows you can take this off their plate, the more meaningful your relationship will be should they face any regulatory challenges.
• But as a recruiter, you won’t just be analyzing your future hire’s bookkeeping knowledge, you’ll also be evaluating their personality and soft skills.
• Finally, a recruiter can assess how willing a candidate is to learn and grow; having the right mindset is key for any role.
• Negative working capital is common in some industries, such as grocery retail and the restaurant business.

Sign up for Workable’s 15-day free trial to hire better, faster. Maybe they created helpful visual data presentations to help them understand their portfolio value or financial reports. Asking your potential client how they think you can add value to their company will help you understand which misconceptions they might have about your role. If you know of any recent changes in tax legislation that could affect your potential client, ask them about it. Pointing out their lack of knowledge can ultimately serve to make your firm even more valuable.

Having someone who you can trust to keep a good record of your accounts and transactions allows you to focus more of your time on growing your business. With so much hinging on having a good bookkeeper, it’s vital to know how to identify the right candidates during the interview process. You can ask these insightful bookkeeper interview questions to find the right fit. A bookkeeping client onboarding questionnaire lists the firm and potential client’s questions and concerns before the relationship begins. To add a barter to your books, create an invoice in your accounting program with the services you are bartering. Then add a line item for what you’re getting in return for the same negative value and categorize it under the proper expense category.

Question #1: What internal controls do we have in place?

Reach qualified candidates and get to the interview stage faster with a free job posting on Monster. If your business has a physical presence in a state that enforces sales tax, you must collect it from customers at the point of sale. Your state, county, or city determines the sales tax rate you must collect. Here are some general accounting questions related to selling your goods or services.

This will give you an idea of how big their business is, but also, depending on how many employees they have and the type of payroll they use, your working time may increase. One of the first questions I ask potential clients is what software they are currently using for bookkeeping purposes. Are they using QuickBooks currently or do they need a subscription to QuickBooks? Do they have a preference for using QuickBooks Online or desktop, or if they use a program other than QuickBooks. This question helps you know what keeps them up at night regarding their business.

Hiring an accountant is the most expensive but least time-consuming method. When you hire an accountant, you don’t need to manage your books. You may hire an in-house accountant or outsource to an accounting firm. The only immediate impact will be on the balance sheet and cash flow statement.