Want to hire a new director of finance but don’t know what to ask them in an interview? Hiring the wrong person for this important job could be disastrous for the company.
You can avoid this by asking the right interview questions and taking a skills test in a relevant area, like accounting or financial management.
Below, you’ll find 20+ questions that can help you get to know candidates better. Using these questions can be beneficial to understanding their experience, skills, and personality.
We’ve also included our comments and sample answers to help you evaluate each applicant you interview.
Interviewing for a Director of Finance and Accounting role? This pivotal leadership position manages all aspects of an organization’s financial health and reporting. It’s a job that requires sharp analytical skills strategic vision and the ability to communicate complex financial information clearly.
The high-stakes interview is your chance to showcase why you have what it takes to excel as finance director, You’ll need to demonstrate your technical proficiency and leadership capabilities Proper preparation and practice answering likely interview questions are key
To help you put your best foot forward we compiled a list of the top Director of Finance and Accounting interview questions companies ask. Read on for examples of strong responses along with tips on how to master this make-or-break interview.
Understanding the Role and Why It’s Critical
It’s safe to say that the Director of Finance and Accounting is an organization’s top financial official. This executive-level role oversees all accounting and finance operations.
Key responsibilities include:
- Developing financial strategy aligned with company goals
- Preparing budgets and financial forecasts
- Producing financial statements and regulatory reporting
- Managing investment activities and cash flow
- Leading the accounting department and team
- Ensuring compliance with accounting standards and regulations
- Identifying cost reduction opportunities
- Analyzing financial performance and advising senior leadership
With such a broad remit, the finance director has immense influence on the company’s financial health and ability to operate. They ensure numbers are accurate, procedures air-tight, investments wise and teams productive. When numbers add up, the business thrives.
That’s why hiring managers take this interview very seriously. They want someone highly competent who can be trusted with the financial keys to the kingdom. Come prepared to demonstrate you have the technical skills and leadership capabilities to excel in this pivotal role.
Now let’s look at the likely questions you’ll face.
Common Director of Finance and Accounting Interview Questions and Answers
Here are a few of the most common interview questions for finance directors, along with some good answers:
Q1: How do you approach budgeting and forecasting for a department or organization?
This question tests your technical knowledge of creating budgets and forecasts. Showcase your methodology and highlight the data you leverage to produce accurate budgets aligned with organizational goals.
Example response: *”I utilize both a bottoms-up and top-down approach to budgeting. It starts with each department head submitting detailed budgets for their specific needs based on growth targets. I then consolidate and analyze those alongside historical data on spending, upcoming initiatives and leadership priorities.
Benchmarking against industry peers also informs the process. From there, I create different budget scenario models to stress test. Once leadership approves the final budget, I build in monthly forecasting analytics and establish processes for monitoring variances.”*
Q2: What are some of the key financial metrics you regularly track and analyze?
This demonstrates your expertise in analyzing important financial metrics. Share examples relevant to the company and industry while explaining how you leverage KPI analysis to provide insights and advise strategy.
Example response: *”Some of the essential metrics I analyze are revenue growth, gross and net profit margins, customer acquisition cost, customer lifetime value, churn rate, ARPU, payback period, cash flow, current ratio, return on equity and EBITDA. I closely track these on a dashboard to monitor performance.
For example, analyzing churn rate and customer lifetime value trends helps inform retention strategies. I provide analysis and guidance to executives on notable variances and how certain metrics correlate to business health.”*
Q3: How do you ensure compliance with financial regulations and reporting requirements?
This question tests your knowledge of accounting rules and ability to manage compliance. Highlight your expertise in standards like GAAP along with methods and checks you implement to maintain adherence.
Example response: *”Ensuring compliance starts with having extensive knowledge of relevant regulations and accounting standards like GAAP. I stay current through continuing education and establishing clear procedures that align with the various requirements.
For financial reporting, I have internal controls for reconciling accounts, validating figures and triple checking required disclosures. I also work closely with external auditors who provide feedback on where we can improve compliance and best practices.”*
Q4: What experience do you have preparing and presenting financial reports to executives and the board?
Here you want to demonstrate your communication skills and ability to translate complex financial information into strategic insights for leadership. Share examples of reports you’ve prepared along with key metrics covered.
Example response: *”I have extensive experience preparing financial reports and presentations for both internal and external stakeholders. This includes standard reports like P&L statements, balance sheets and cash flow as well as custom reports tailored to highlight metrics relevant to specific goals or emerging issues.
My presentations summarize key data, provide analysis on variances and make actionable recommendations on pricing, investments, budget allocations and more. I’m able to synthesize data and tie financial results back to operational drivers in a clear manner.”*
Q5: What experience do you have with financial analysis and modeling?
This is your chance to showcase your finance skills. Provide examples of analysis or models you’ve built along with technical methodologies and tools leveraged to produce insights.
Example response: *”I have strong experience building financial models in Excel for forecasting, budgeting and data analysis using methods like sensitivity analysis, breakeven modeling, NPV modeling and scenario planning. I’m also proficient with data visualization tools like Tableau to better identify patterns and trends.
For example, I built a driver-based model analyzing customer profitability cohorts that led to adjustments in credit policies and pricing optimization.”*
Q6: How do you identify and execute on opportunities to improve financial performance?
Hiring managers want to understand your strategic thinking abilities. Share proven methods or initiatives you’ve led, whether cost reductions, process improvements or growth opportunities, that enhanced financial health.
Example response: *”I take a hands-on approach to identify areas for financial performance improvement. This involves deep analysis to pinpoint low-profit products/services, operational inefficiencies or outdated policies limiting growth. I partner closely with ops and sales leaders to brainstorm initiatives addressing issues surfaced through analysis.
For example, through customer cohort analysis, I identified outsized churn among small business accounts. Working cross-functionally, we implemented automated renewals and customized loyalty incentives improving retention by 35%.”*
Q7: What experience do you have managing a finance/accounting department?
As head of the department, they’ll want to know your management experience. Share details on the scope of teams you’ve led, your approach to talent development, and methods for boosting staff productivity.
Example response: *”As Director of Finance at my previous company, I oversaw a 25-person accounting team. I prioritized professional development through mentorship programs and skills training. My team surpassed revenue audit targets each quarter through incentives I implemented for internal controls.
I also managed successful migration to a new ERP system under budget through detailed project management and change management strategies. My approach emphasizes communication, accountability and enabling staff to operate at their full potential.”*
Q8: How do you stay current on the latest accounting standards and financial best practices?
Demonstrate you have a learning mindset and hunger for continuous improvement. Share resources, professional networks, certifications and habits that help you stay abreast of the latest developments.
Example response: *”I make continuing education a priority through taking new courses, attending conferences, reading accounting journals and participating in several professional associations. I also have a strong peer network of CFOs I engage with regularly to share ideas and strategies.
Internally, I foster a culture of learning, incentivizing staff to take certification courses. I also have my team crosstrain and job shadow to expand knowledge across different areas of accounting and finance.”*
Q9: What accounting technology platforms are you proficient with?
Most finance teams rely heavily on technology. Highlight your experience with accounting tools and enterprise software like Quickbooks, Oracle, SAP, Workday along with any data visualization or business intelligence platforms.
Example response: *”I have extensive hands-on experience with leading finance systems including Oracle, NetSuite and Adaptive Insights. This spans general ledger, accounts payable, accounts receivable and reporting modules. I’m highly proficient in Excel and Tableau for advanced modeling, analysis and data visualizations.
I also have experience integrating best-of-breed fintech tools through APIs to create tailored workflows addressing specific pain points, like using Bill.com for automated AR/AP.”*
Q10: Do you have any questions for me?
This is your chance to demonstrate interest and learn more about the role and company. Ask smart questions that provide valuable insights into day-to-day responsibilities, challenges of the role, short and long-term goals, success metrics and company culture.
Example questions:
- What are the top business priorities and goals you would want me to focus on if hired?
- What are the biggest challenges facing the finance department and what would success look like addressing them?
- How much interaction with the C-suite can I expect in this position?
- How does the finance department collaborate cross-functionally here?
- What financial KPIs does leadership monitor most closely?
- What traits
1 What strategies do you use to prioritize tasks?
Finance directors are likely to juggle many projects simultaneously, meaning they’ll need a comprehensive understanding of prioritizing tasks. Candidates should list the specific methods they’ve used to handle a lot of work in the past and explain why these methods work.
For example, the best candidates will say that they set priorities by figuring out what’s best for the business, like big investment deals or ways to make the workplace more efficient.
1 What do you hope to achieve in your first month here?
The person you hire to be finance director should already have a good idea of what they want to do in their first month and what changes they want to make.
When they start working for you, finance directors should really understand what your company’s problems are and be able to show you how they plan to fix them right away.
As most new employees only work at a 25% capacity in the first month of their new job, it’s a good idea to learn about their plan for those first few weeks during the interview.
The best candidate will list their top priorities for the first month and explain why they think these are important.
3 most frequently asked accounting interview questions
FAQ
How to prepare for a director of finance interview?
How to prepare for interview with VP of finance?
How do you answer a financial director interview question?
As a financial director, part of your job involves managing your team. Employers ask this interview question to make sure you have conflict-resolution skills. Use your answer to show that you are an empathetic and understanding leader.
What questions should a director of Finance ask a recruiter?
When you apply for a director of finance role, recruiters will want to assess your financial management abilities, your soft skills, and your overall compatibility with the company. We’ve compiled the most common technical, behavioral, and general interview questions with sample answers.
What should a director of Finance do in an interview?
Directors of finance often have to make decisions about how to handle financial issues. The interviewer wants to know that you can use your leadership skills and experience to help the team come to a consensus on how to address the issue.
How do you prepare for a finance director interview?
The best way to prepare for your interview is to practice your answers to common questions. Take the time to practice with a friend or to record your answers to see where you can make improvements. Research the company and make sure you understand its values and requirements for the role.
