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Bookkeeper Interview Questions and Answers

A bookkeeper is the profession of accounting. A person is responsible primarily for maintaining the company’s financial records daily, including the record of the sales, purchases, and other various financial transactions in the business’s day-to-day operations.

This article provides 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 bookkeeper’s job, a person deals with the numbers. I have a passion for the numbers by which essential services can be provided to different businesses worldwide.

This bookkeepingBookkeepingBookkeeping is the day-to-day documentation of a company’s financial transactions. These transactions include purchases, sales, receipts, and payments.read more profession enhances and enriches the foundation knowledge of finance, thereby enabling informed decisions. Also, since every day, new challenges are offered for the bookkeeping professionals, it makes a career in bookkeeping a rewarding career.

#2 – What were your Responsibilities as a Bookkeeper?

The following are the responsibilities of a bookkeeper:

  • Passing various journal entries in the books of accounts for the company, including the data entry of the invoices.Reconcile bank statementsReconcile Bank StatementsCustomers perform bank reconciliation to tally their records with their respective bank’s statements because there may be differences between the customer’s books of accounts and those of the bank.read more 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.read more, accounts receivableAccounts ReceivableAccounts receivables is the money owed to a business by clients for which the business has given services or delivered a product but has not yet collected payment. They are categorized as current assets on the balance sheet as the payments expected within a year.
  • read more, 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%).read more.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 balanceTrial BalanceTrial Balance is the report of accounting in which ending balances of a different general ledger are presented into the debit/credit column as per their balances where debit amounts are listed on the debit column, and credit amounts are listed on the credit column. The total of both should be equal.read more.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.read more, 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.read more 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.read more, and cash flow statementCash Flow StatementA Statement of Cash Flow is an accounting document that tracks the incoming and outgoing cash and cash equivalents from a business.read more.

#3 – What is your Experience as a Bookkeeper?

As a bookkeeper, I performed the following services:

  • I was responsible for managing the business’s operations Business’s OperationsBusiness 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.read more occurring daily, like recording the transactions involving the purchase and sale of the various items, managing the accounts payable and receivable, reconciliation of the bank accounts with the company’s books of accounts, etc.Maintaining the records and filing of the use tax and sales tax return at the end of the period on a time basis to the concerned department.Posting the ledgers to trial balanceTrial BalanceTrial Balance is the report of accounting in which ending balances of a different general ledger are presented into the debit/credit column as per their balances where debit amounts are listed on the debit column, and credit amounts are listed on the credit column. The total of both should be equal.read more 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 companies prefer digital records over physical financial ledgers nowadays, so the bookkeepers should be familiar 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.read more and office programs and the knowledge of cloud-based software as many companies are working on them.

#5 – Describe the Equation of the Balance Sheet?

As per the equation of the balance sheetEquation 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 + Liabilitiesread more, all the assets of the company on the particular date should be equal to the sum of the liabilities which it owes on the date to the third party and the 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.read more 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 recent professional development plan was created by me. To grow professionally, I noted all the relevant points required for the development, especially upgrading the skills like upgrading computer skills, etc.

#7 – What Bookkeeping Methods do you know?

There are two types and methods of bookkeeping.

The first method is the single entry method of bookkeepingSingle Entry Method Of 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.read more. One entry is recorded for each financial activity or each of the financial transactions occurring in the organization. This single entry method of bookkeeping is one of the basic systems the companies might use to record their daily receipts. It also enables the company to generate a report of the cash flow position in the company on a daily or every week that the management might require of the company for their informed decision-making process.

Another method 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. read more under which double-entry is recorded for each of the financial activities or each of the financial transactions occurring in the organization. This method is a popular one and has been adopted in many organizations. It checks the balances and records corresponding credit or debit entries for each transaction.

#8 – How Do you Avoid Mistakes in your job as a Bookkeeper?

There are chances of committing various types of mistakes in bookkeeping jobs. I avoid these mistakes 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 an appropriate system of filing as it saves time and money, by tracking the income as well as the expenses incorrect categories 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.read more 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 of being a Bookkeeper?

It is required for the bookkeepers to consistently maintain the record of books, which requires time and effort. If a person doesn’t have the proper time, it will be hard to be a bookkeeper. Apart from this, a person should have sufficient knowledge of how it can deal with the numbers and properly classify all the company’s income and expenses. If the categorization is not proper, it could mislead the management in their analysis and negatively affect tax-related matters.

#10 – Why would you like to Quit your Current Job?

This has been a guide to Bookkeeper Interview Questions and Answers. Here we discuss the list of top 10 bookkeeper questions and their answers to crack the interview. You can learn more about finance from the following articles –

  • FP&A Interview QuestionsInvestment Banking Interview QuestionsCorporate Finance Interview QuestionsAccounting Interview Questions