Bookkeeper Interview Questions and Answers
A bookkeeper is the profession of accounting in which a person is responsible primarily for maintaining the financial records of the company on a daily basis that includes maintaining the record of the sales, purchase, and other various financial transactions that take place in day to day operations of the business.
In this article, we provide the top 10 bookkeeper interview questions and answers for you.
Top 10 Bookkeeper Interview Questions and Answers
The following are the top 10 interview questions and answers related to the bookkeeper.
#1 – Why would you like to be a Bookkeeper?
In the case of the job of the bookkeeper, a person deals with the numbers. I have a passion for the numbers by which crucial services can be provided to different businesses all over the world.
This profession of the bookkeepingBookkeepingBookkeeping is the day to day recording of financial transactions such as purchases, sales, receipts, and payments, and it is the first step in the accounting process. It can be prepared in two ways: single-entry and double-entry; however, the double-entry approach is more widely used and recognized in most countries. enhances and enriches the foundation knowledge of the finance, thereby enabling in making informed decisions. Also, since every day, new challenges are offered for the bookkeeping professionals, it makes a career in bookkeeping as a rewarding career.
#2 – What were your Responsibilities as a Bookkeeper?
The following are the responsibilities as a bookkeeper:
- Passing various journal entries in the books of accounts for the company, including the data entry of the invoices.
- Reconcile bank statements with the books of accounts.
- Maintaining the records of the accounts payableAccounts PayableAccounts payable is the amount due by a business to its suppliers or vendors for the purchase of products or services. It is categorized as current liabilities on the balance sheet and must be satisfied within an accounting period., accounts receivableAccounts ReceivableAccounts receivables refer to the amount due on the customers for the credit sales of the products or services made by the company to them. It appears as a current asset in the corporate balance sheet., use tax, payroll matters, and sales taxSales TaxThe government levies sales tax on the consumption of various goods and services as the percentage added to the product and services from which the government earns revenue and does the company's welfare. In the United States, 38 different states have different taxes, from Alaska (1.76%) to Tennessee (9.45%)..
- Paying the bills to the various parties on a timely basis with the approval of the competent authority.
- Posting the ledgers of the company to trial balance.
- Preparation of the various financial statements of the companyFinancial Statements Of The CompanyFinancial statements are written reports prepared by a company's management to present the company's financial affairs over a given period (quarter, six monthly or yearly). These statements, which include the Balance Sheet, Income Statement, Cash Flows, and Shareholders Equity Statement, must be prepared in accordance with prescribed and standardized accounting standards to ensure uniformity in reporting at all levels., such as income statementIncome StatementThe income statement is one of the company's financial reports that summarizes all of the company's revenues and expenses over time in order to determine the company's profit or loss and measure its business activity over time based on user requirements. for the period, balance sheetBalance SheetA balance sheet is one of the financial statements of a company that presents the shareholders' equity, liabilities, and assets of the company at a specific point in time. It is based on the accounting equation that states that the sum of the total liabilities and the owner's capital equals the total assets of the company., and cash flow statementCash Flow StatementStatement of Cash flow is a statement in financial accounting which reports the details about the cash generated and the cash outflow of the company during a particular accounting period under consideration from the different activities i.e., operating activities, investing activities and financing activities..
#3 – What is your Experience as a Bookkeeper?
As a bookkeeper, I performed the following services:
- I was responsible for managing the operations of the businessOperations Of The BusinessBusiness operations refer to all those activities that the employees undertake within an organizational setup daily to produce goods and services for accomplishing the company's goals like profit generation. occurring on the daily basis like recording the transactions involving purchase and sale of the various items, managing the accounts payable and receivable, reconciliation of the bank accounts with the books of accounts of the company, etc.
- Maintaining the records and filing of the use tax and sales tax return at the end of the period on the time basis to the concerned department.
- Posting the ledgers to trial balance along with the preparation of the various financial statements of the company.
#4 – Which Computer Skills should a Bookkeeper have?
Many of the jobs of the bookkeeping require the performance of the technical duties and the knowledge of the different computer skills and techniques. Also, most of the companies prefer digital records over the physical, financial ledgers nowadays, so the bookkeepers should have familiarity with different accounting softwareAccounting SoftwareWave Accounting Software, Akaunting Software, Slick Pie Accounting Software, GnuCash Accounting Software, xTuplePostBoks Accounting Software, Inv24 Accounting and Inventory Software, and NCH Express Accounts Accounting Software are among the best accounting softwares available. and the office programs along with the knowledge of cloud-based software as many company are working on them.
#5 – Describe the Equation of the Balance Sheet?
As per the equation of balance sheetQuation Of Balance SheetBalance Sheet Formula is a fundamental accounting equation which mentions that, for a business, the sum of its owner’s equity & the total liabilities equal to its total assets, i.e., Assets = Equity + Liabilities, all the assets of the company as on the particular date should be equal to the sum of the liabilities which it owes as on the date to the third party and claim of the shareholdersShareholdersA shareholder is an individual or an institution that owns one or more shares of stock in a public or a private corporation and, therefore, are the legal owners of the company. The ownership percentage depends on the number of shares they hold against the company's total shares. on the assets of the company, i.e., equity of the company. In mathematical form as on the particular date under consideration:
#6 – What have you learned to become a better Bookkeeper in Recent Times?
In recent times, I have started pursuing the certification of the Certified Public Accountant with the American Institute as it will upgrade my knowledge and skills. Apart from this, a recently professional development plan was created by me where in order to grow professionally, I noted all the relevant points which are required for the development especially upgrading the skills like upgrading computer skills, etc.
#7 – What Bookkeeping Methods do you know?
There are basically two types and methods of bookkeeping.
The first method is the single entry method of the bookkeepingSingle Entry Method Of The BookkeepingThe Single Entry System is an accounting approach under which every accounting transaction is recorded with only a single entry towards the results of the business enterprise, shown in the statement of income of the company., according to which one entry is recorded for each of the financial activities or for each of the financial transactions occurring in the organization. This single entry method of bookkeeping is one of the basic systems which might be used by the companies for recording its daily receipts. It also enables the company to generate a report of the cash flow position in the company on a daily or on a weekly basis that might be required by the management of the company for their informed decision-making process.
Another method of the system of bookkeeping is the double-entry systemDouble-entry SystemDouble Entry Accounting System is an accounting approach which states that each & every business transaction is recorded in at least 2 accounts, i.e., a Debit & a Credit. Furthermore, the number of transactions entered as the debits must be equivalent to that of the credits. under which double-entry is recorded for each of the financial activities or for each of the financial transactions occurring in the organization. This method is a popular one and adopted in many organizations as it provides a check of the balances, and also it records corresponding credit or debit entry for each of the transactions.
#8 – How Do you Avoid Mistakes in your job as a Bookkeeper?
There are chances of committing various types of mistakes in bookkeeping jobs. These mistakes are avoided by me in the job by keeping the backup of all the data as in the world of technology there are chances of potential loss to the data, by maintaining accurate and proper records of all the data on a timely basis with proper filing system as it saves time and money, by tracking the income as well as the expenses incorrect categories in order to ensure proper profitabilityProfitabilityProfitability refers to a company's ability to generate revenue and maximize profit above its expenditure and operational costs. It is measured using specific ratios such as gross profit margin, EBITDA, and net profit margin. It aids investors in analyzing the company's performance. measurement and avoid improper categorization of the expenses, by separating the person and business bank account and reconciling them timely and by classifying the employees and the contractors correctly, etc.
#9 – What’s the Hardest Part to be a Bookkeeper?
It is required for the bookkeepers to consistently maintain the record of books, which requires time and effort. In case a person doesn’t have the proper time, then it will be very hard being a bookkeeper. Apart from this person should have sufficient knowledge of how it can deal with the numbers and properly classifying all the income and expenses of the company. If the categorization is not proper, then it could mislead the management in their analysis along with negative consequences in tax-related matters.
#10 – Why would you like to Quit your Current Job?
I would like to quit my current job for my personal as well as professional growth. By working in such a big organization like yours, I would be able to gain more experience in different areas and enhance my knowledge and skills.
This has been a guide to Bookkeeper Interview Questions and Answers. Here we discuss the list of top 10 bookkeeper questions along with there answers to crack the interview. You can learn more about finance from the following articles –