Small-business bookkeeping interview questions
Interview and client-meeting questions for small-business bookkeepers: setup, cash management, sales tax basics, owner communication and boundaries.
Focus areas: Setting up and maintaining books · Cash and receivables management · Owner communication · Knowing when to refer to a tax or legal professional · Timed practical task: Statements and close (30 minutes)
- technicalQuestion 1
How would you set up the books for a new service business?
A strong answer covers
- Chart of accounts suited to the business
- Opening balances and owner investment
- Bank feeds/reconciliation routine
- Document filing
- Month-end checklist
Common mistakes
- Overcomplicating the chart
- technicalQuestion 2
How do you separate business and personal transactions?
A strong answer covers
- Separate accounts
- Drawings and contributions
- Reviewing mixed transactions with the owner
Common mistakes
- Recording personal items as expenses
- technicalQuestion 3
How do you treat sales tax you collect?
A strong answer covers
- Liability, not revenue
- Remit on schedule
- Rules vary by jurisdiction — confirm with official sources
Common mistakes
- Giving specific tax advice beyond your role
- technicalQuestion 4
What reports would you give a small-business owner monthly?
A strong answer covers
- Income statement
- Balance sheet
- Cash view
- AR aging
- Brief commentary
Common mistakes
- Only sending raw reports
- technicalQuestion 5
When should a purchase be capitalized?
A strong answer covers
- Long-lived benefit
- Business capitalization threshold
- Include costs to get it ready
- Depreciation
Common mistakes
- Capitalizing repairs
- situationalQuestion 6
An owner wants to stop reconciling the credit card to save time.
A strong answer covers
- Explain the risk
- Offer a lighter process
- Document the decision
Common mistakes
- Agreeing silently
- situationalQuestion 7
The owner asks a detailed tax question.
A strong answer covers
- Explain what you can within your role
- Refer to a qualified tax professional
- Provide clean books to support them
Common mistakes
- Guessing at tax rules
- situationalQuestion 8
Cash is tight and bills are due. How do you help?
A strong answer covers
- Cash view and upcoming payments
- Collect receivables
- Discuss payment priorities with the owner
- Don't misrecord timing
Common mistakes
- Delaying entries to hide problems
- communicationQuestion 9
How do you explain depreciation to an owner?
A strong answer covers
- Spreading cost over use
- Non-cash expense
- Example
Common mistakes
- Calling it a cash cost
- communicationQuestion 10
How do you request documents from a busy owner?
A strong answer covers
- Short list
- Deadline
- Simple way to send
- Explain impact
Common mistakes
- Long technical emails
- technicalQuestion 11
What's an owner's draw and how does it affect profit?
A strong answer covers
- Reduces equity
- Not on income statement
- Profit unchanged
Common mistakes
- Saying it reduces profit
- situationalQuestion 12
You discover last quarter's statements had an error.
A strong answer covers
- Quantify
- Correct in an open period with documentation
- Tell the owner and accountant
- Prevent recurrence
Common mistakes
- Ignoring
- technicalQuestion 13
How do you handle customer deposits?
A strong answer covers
- Unearned revenue until delivered
- Recognize when earned
- Track by customer
Common mistakes
- Booking as revenue immediately
- communicationQuestion 14
How do you set boundaries on what you do?
A strong answer covers
- Scope of engagement
- When to refer
- Clear communication
Common mistakes
- Overpromising
- situationalQuestion 15
A client wants you to backdate an invoice.
A strong answer covers
- Explain why not
- Record accurately
- Escalate or decline
Common mistakes
- Complying