| By Ebookkeeper | | | | packing slip and lastly verified against the |
| | | | invoice for the correct quantities and |
| Most people in the business world who do not | | | | pricing received and agreed upon. |
| work in Accounting may have difficulty | | | | |
| interviewing Accountants and Bookkeepers. | | | | 5. If you are collecting on Accounts |
| This is mainly due to the fact that their | | | | Receivable and you realize that there is no |
| knowledge of the subject is limited. | | | | record of a customer's phone number around, |
| Furthermore, the subject of Bookkeeping and | | | | how would you proceed to get in contact with |
| Accounting alone can put some people asleep | | | | the customer about the open receivable? |
| faster then some cold medicines. | | | | |
| | | | Answer: Again answers can vary on this |
| This article will help you get through some | | | | question, but the person should be able to |
| basics of interviewing for these types of | | | | track down a number by using the internet or |
| bookkeeping positions. We will jump right | | | | calling an information directory for the |
| into the meat and potatoes of the subject and | | | | listing with the address the product shipped |
| assume you already know the other basics of | | | | to. With modern day's ease of obtaining |
| interviewing candidates. | | | | information the last thing you want is a |
| | | | person who just does not do anything. |
| Bookkeeping and Accounting can cover a large | | | | |
| range of experience and skills. So to | | | | What to ask the advanced bookkeeper in an |
| simplify these interview questions for | | | | interview. First let's define what an |
| bookkeepers, there are two different | | | | advanced bookkeeper is. |
| interviewing groups we will focus on. | | | | |
| | | | B. Definition of an Advanced Bookkeeper: A |
| The two groups are: | | | | person who has a good understanding of paper |
| | | | and record flow in a business. This person |
| A. Standard Bookkeeper | | | | should be able to easily understand |
| | | | Accounting processes and procedures in an |
| B. Advanced Bookkeeper | | | | organization. They usually have at least some |
| | | | college experience or an Associates / |
| What to ask the standard bookkeeper in an | | | | Bachelors degree in Accounting. However, |
| interview. First let's define what a standard | | | | years of experience doing bookkeeping could |
| bookkeeper is. | | | | qualify for not having a degree. An advanced |
| | | | bookkeeper should also be able to understand |
| A. Definition of a Standard Bookkeeper: A | | | | more about financial statements, computer |
| person who has a general understanding of | | | | systems, and the general ledger then the |
| paper and record flow in a business. For | | | | standard bookkeeper. In some cases an |
| example this person should understand | | | | advanced bookkeeper is capable of running all |
| customer invoicing and how that relates to | | | | of the accounting functions of a company. |
| accounts receivable. They should also | | | | Professional Bookkeepers can also be CPA's, |
| understand how the company purchases from | | | | Accounting Managers, Controllers, and CFO's. |
| vendors and the importance of coding invoices | | | | |
| into the accounts payable system. Lastly, the | | | | Five Interview questions for an Advanced |
| Standard Bookkeeper should work under the | | | | Bookkeeper: (Please note: sometimes there |
| guidance of a more experienced Accountant | | | | could be different answers to the same |
| which could even be your outside CPA firm. | | | | question. It helps if you understand what you |
| Typically, the Standard Bookkeeper is not | | | | are asking as well. If a potential bookkeeper |
| responsible for setting up your chart of | | | | gives a different answer then what you |
| accounts, preparing financial statements, or | | | | expected, just ask if they could explain |
| handling major financial matters. This person | | | | more.) |
| should be viewed as a processor of | | | | |
| information. | | | | 1. What is the difference between a Profit |
| | | | and Loss Statement and a Balance Sheet |
| Five Interview questions for a Standard | | | | Statement? |
| Bookkeeper: ( Please note: sometimes there | | | | |
| could be different answers to the same | | | | Answer: A Profit and Loss Statement (or |
| question. It helps if you understand what you | | | | Income Statement) is used to measure how a |
| are asking as well. If a potential bookkeeper | | | | company performed financially over a set |
| gives a different answer then what you | | | | period of time, such as a month, quarter, or |
| expected, just ask if they could explain | | | | year. A Balance Sheet Statement reflects the |
| more.) | | | | companies overall financial health in terms |
| | | | of what the company has in resources (assets) |
| 1. What is an Asset and what is a Liability? | | | | and what the company owes (liabilities). |
| | | | |
| Answer: An Asset is something of value to | | | | 2. Under the accrual basis of accounting |
| benefit a company. Some examples of an Asset | | | | (which most companies use) when are expenses |
| would be Cash, Accounts Receivable, | | | | recognized? |
| Inventory, and Fixed Assets. Liabilities are | | | | |
| what are owed by a business. Some examples of | | | | Answer: Expenses are recognized when they |
| Liabilities would be Accounts Payable, Bank | | | | happen in accrual basis accounting. For |
| Loans, and Accrued Accounts. | | | | example: When a purchase is made with net 30 |
| | | | day terms,that purchase/expense is recorded |
| 2. What is a Journal Entry? | | | | at the time of obtaining the goods or |
| | | | service. |
| Answer: A journal entry records the | | | | |
| accounting information for a business | | | | 3. What is Depreciation? |
| transaction. The entry is made in a journal | | | | |
| and then usually posted to the general | | | | Answer: Depreciation is the process that |
| ledger. | | | | spreads out the cost of an asset over its |
| | | | useful life as determined by the IRS. So |
| 3. In Accounts Receivable, how would you | | | | instead of all the cost of the asset being |
| handle a customer who disputes they received | | | | expenses in one year it could be spread out |
| a shipment or service from the company and | | | | over several years. There are several |
| therefore shows no amount is owed? | | | | different types of depreciation used by |
| | | | companies but the most common is the straight |
| Answer: Of course answers could vary, but | | | | line method which simply divides the cost by |
| typically the bookkeeper should verify that | | | | the useful years of the asset. |
| the shipment or service took place and | | | | |
| provide supporting backup to the customer | | | | 4. The General Ledger Chart of Accounts can |
| that could include a Bill of Lading showing | | | | be summarized into five main account |
| the shipment was delivered to the company, or | | | | groupings. What are these accounts? |
| a signed service contract with the work | | | | |
| performed in detail, and a copy of the | | | | Answer: *Income (Sales) *Expenses (Cost of |
| invoices in question. | | | | Sales) *Assets |
| | | | |
| 4. In Accounts Payable when the company makes | | | | *Liabilities *Owners Equity or Net Worth. |
| a purchase and receives an invoice, what | | | | |
| should be verified before making the payment | | | | 5. What does the inventory methods FIFO and |
| to the vendor? | | | | LIFO stand for? |
| | | | |
| Answer: Generally, a company purchase order | | | | Answer: FIFO = First In First Out. LIFO = |
| is matched up against a receiving document or | | | | Last In First Out. |