Common finance interview questions and how to approach them

An impressive resume is the first tool that you'll need to capture the interest of potential employers, but your interview is what seals the deal. Thoughtful preparation helps you make a good impression and highlights your skills and expertise. We've rounded up some common interview questions for finance careers so you can get a head start on your preparations. Take the time to organize your thoughts before the day of your interview so you have key examples ready to make an outstanding impression on your potential employer.

Entry-level finance interview questions

When you're interviewing for an entry-level finance position, you probably won't have much relevant work experience to refer to. Creating a strong job profile is a good start to help you connect with employers, but you'll still need to impress them in person. Incorporate examples of your overall financial knowledge into your answers to demonstrate your expertise.

How do you respond to working under pressure?

Some finance positions require tight deadlines and quick decision-making. For this type of role, you must demonstrate an ability to handle pressure. Refer to instances where you've handled stress in the past, whether it was in finance or another type of role. Reference your ability to think clearly and calmly, and mention that you take the time to double-check your work and ensure accuracy.

What are your goals for the next five years?

When you're interviewing for an entry-level position, you usually have your eyes set on something more ambitious. Answer this question with a specific reference to future promotions that you'd like to achieve. This is a prime opportunity to demonstrate your commitment to the company and your desire to grow and learn within its ranks.

Explain how a cash flow statement works.

A cash flow statement is one of the most basic financial documents, so it's important to demonstrate your knowledge of it. Explain that the cash flow statement includes information on operating, financing, and investing activities. Discuss how the cash flow statement can inform financial planning tasks.

Why are you interested in this position?

If you don't have a long history of employment in the financial sector, your potential employer will want to know why you've chosen to interview for this type of position. Be prepared with an answer that references your financial skills, such as an affinity for math or a deep interest in economic trends and business forecasting. You should also detail some aspects of the company that you like. Perhaps you've read about the recent launch of a new product line, and you're interested in participating in the company's future growth in this area.

Financial analyst interview questions

"Companies want to ensure that you know exactly how every movement will impact their three core financial documents."

Financial analysts have a very data-heavy job. If you're interviewing for this role, be prepared to answer some technical, data-oriented finance questions. Thinking about potential questions and answers for the interview in advance will help you organize your thoughts for these types of complex inquiries.

What type of financial statement is most useful for assessing a company's overall health?

As a financial analyst, you must have an in-depth understanding of a business's financial statements, including balance sheets, income statements, and cash flow statements. You can identify any of these three as a key indicator of the company's financial health, but you must have a detailed justification for your choice.

How does the purchase of an asset impact our income statement, cash flow statement, and balance sheet?

Companies want to ensure that you know exactly how every movement will impact their three core financial documents. To answer this question, mention that each purchase increases assets on the balance sheet and adds depreciation to the income statement. If the purchase accrued debt, then it will also increase the company's liabilities. Elaborate on your opinion of the best way to acquire and manage assets.

How would you compare cost accounting to costing?

Costing and cost accounting sound similar, but they are very different processes, as a good financial analyst will know. Your answer to this question demonstrates your in-depth understanding of the fact that costing is a method used to identify the cost of a product or service. Cost accounting is a crucial technique used to evaluate expenses incurred during a business venture which will inform financial decision-making. 

What is RAROC?

RAROC, or risk-adjusted return on capital, is a useful investment measurement. This number is determined by calculating the company's revenues and income from capital minus costs and expected losses and dividing this number by the economic capital. This number gives you a modified return on investment that takes into account the elements of risk. While elaborating on RAROC, explain how this number is especially useful for financial companies and banks.

Finance executive interview questions

As a finance executive, you'll have a significant role in the advancement of the business. It's important to have an established history in both the finance profession and in leadership roles. During the interview, demonstrate the depth of your financial knowledge as well as an understanding of how you can apply this knowledge specifically to the company in question.

What are the most valuable finance skills you've gained in your career?

Use this question to outline the upward trajectory of your career. Review the high points of your employment history while calling out the specific skill set that you've built along the way. Include examples of how you've used your finance skills to directly enhance profits, minimize losses, or recommend smart investment decisions to previous employers. Finance is all about numbers, so quantify your successes as much as possible.

What experience do you have in financial management roles?

As a finance executive, you'll need to manage not only your own activities but those of others. Be prepared with specific examples of other leadership positions that you've held. Demonstrate your ability to oversee others, maintain strong professional relationships, and provide confident leadership.

How do you approach growth and scale?

Growth and scale are two very different things, so you should clearly distinguish between the two in your answer. Business growth refers to an increase in top-line revenue. This looks good on the surface, but it's typically secondary to scale for professionals who are focused on the inner workings of the company. When you scale a business, you increase both the revenues and profit margins simultaneously by improving efficiency. Growth without scale levels off while growth with scale can skyrocket. Explain how your approach will take both growth and scale into account.

What are the most difficult decisions that a finance executive has to make?

Financial executives are charged with making difficult investment decisions. These require in-depth research as well as solid risk assessment. Provide insights into how you approach decision-making as well as how you would guide the financial future of the company. Include examples of challenging decisions that you've made in the past with a detailed explanation of how you approached and overcame the challenges.

Reviewing these finance interview questions will get your brain working in the right direction so you can start preparing prime examples of your past successes and relevant knowledge for the position in question. An impressive interview will go a long way toward helping you land that coveted position.

More tips for acing your finance interview

Take some time getting ready for your interview so you have a clear head and focused mind when you go in.

You know about interview dos, but how about don'ts? Review these common mistakes so you can steer clear of them.

Go over the basics and review some of the most common interview questions so you're ready for anything.