.webp)
Traditional interviews often fail to reveal a candidate's true capabilities in practical bookkeeping scenarios. While a resume might showcase experience with accounting software or list previous employers, it doesn't demonstrate how a candidate handles real-world financial tasks under pressure or their attention to detail when reconciling accounts.
Work sample exercises bridge this gap by allowing candidates to demonstrate their skills in action. For bookkeepers specifically, these exercises can reveal critical abilities like accuracy in transaction processing, proficiency with accounting software, analytical thinking when resolving discrepancies, and organizational skills when managing multiple financial tasks.
By incorporating the following work samples into your hiring process, you'll gain valuable insights into each candidate's practical skills, problem-solving abilities, and attention to detail. These exercises simulate the day-to-day responsibilities of a bookkeeper, providing a window into how candidates would perform in your actual work environment.
Additionally, these exercises include feedback mechanisms that assess a candidate's coachability—a crucial trait for any bookkeeper who will need to adapt to your company's specific financial processes and potentially evolving accounting software or procedures.
Activity #1: Transaction Processing and Categorization
This exercise evaluates a candidate's ability to accurately process and categorize financial transactions—a fundamental bookkeeping responsibility. It tests their knowledge of accounting principles, attention to detail, and proficiency with spreadsheet applications. By simulating a typical day's worth of transactions, you'll see how candidates organize, categorize, and record financial data.
Directions for the Company:
- Prepare a spreadsheet with 15-20 sample transactions that would be typical for your business (invoices, receipts, payments, etc.).
- Include some transactions that require judgment calls on categorization.
- Provide a chart of accounts that matches your company's structure.
- Allow candidates to use Excel or Google Sheets to complete the exercise.
- Set a time limit of 30-45 minutes for this exercise.
- Consider including 1-2 intentional errors or unusual transactions to see if candidates identify them.
Directions for the Candidate:
- Review the provided transactions and chart of accounts.
- Create journal entries for each transaction, ensuring proper debits and credits.
- Categorize each transaction according to the provided chart of accounts.
- Flag any transactions that seem unusual or require additional information.
- Complete a brief summary explaining any decisions that required judgment calls.
- Finish within the allotted time frame.
Feedback Mechanism:
- After completion, review the candidate's work and identify one strength (e.g., "I noticed you correctly categorized all the travel expenses and maintained consistent formatting") and one area for improvement (e.g., "I noticed you categorized the software subscription as an office expense rather than a technology expense").
- Ask the candidate to explain their thought process for the improvement area and give them an opportunity to correct it.
- Observe how receptive they are to feedback and their ability to adjust their approach.
Activity #2: Bank Reconciliation and Discrepancy Resolution
This exercise assesses a candidate's ability to reconcile bank statements with internal records and identify discrepancies—a critical monthly task for bookkeepers. It tests analytical thinking, attention to detail, and problem-solving skills when faced with financial inconsistencies.
Directions for the Company:
- Create a mock bank statement and a corresponding internal record of transactions (e.g., in QuickBooks or Excel).
- Include several discrepancies such as:
- A check that was recorded but hasn't cleared
- A bank fee that wasn't recorded in the internal system
- A deposit recorded at a different amount than what appears on the bank statement
- A duplicate transaction
- Provide any necessary documentation like check registers or deposit slips.
- Allow 45-60 minutes for completion.
Directions for the Candidate:
- Compare the provided bank statement with the internal financial records.
- Identify all discrepancies between the two records.
- Prepare a reconciliation report that explains each discrepancy.
- Recommend appropriate actions to resolve each issue.
- Calculate the correctly reconciled balance.
- Document your process and any assumptions made during reconciliation.
Feedback Mechanism:
- Highlight one aspect of their reconciliation process that was particularly thorough or effective.
- Identify one discrepancy they may have missed or a recommendation that could be improved.
- Ask them to explain how they would adjust their approach based on this feedback.
- Give them 10 minutes to revise their reconciliation or recommendations accordingly.
Activity #3: Financial Report Generation and Analysis
This exercise evaluates a candidate's ability to generate and interpret key financial reports—an essential skill for providing insights to management. It tests their understanding of financial statements, proficiency with accounting software, and ability to communicate financial information clearly.
Directions for the Company:
- Prepare a dataset with 3-6 months of financial transactions.
- If possible, use your actual accounting software (with dummy data) or provide access to a demo version.
- Alternatively, provide an Excel spreadsheet with organized financial data.
- Include information necessary to create basic financial statements.
- Allow 60 minutes for completion.
Directions for the Candidate:
- Using the provided data, generate the following reports:
- Income Statement (Profit & Loss)
- Balance Sheet
- Cash Flow Statement (if time permits)
- Ensure proper formatting and organization of each report.
- Write a brief analysis (250 words or less) highlighting 3-5 key insights from these reports.
- Identify any concerning trends or positive developments shown in the data.
- Prepare to explain how these insights might inform business decisions.
Feedback Mechanism:
- Commend one aspect of their report generation or analysis that was particularly insightful.
- Suggest one area where their analysis could be deeper or more actionable.
- Ask them to expand on this area with additional insights based on the feedback.
- Observe their ability to think critically about financial data and incorporate feedback.
Activity #4: Error Detection and Compliance Check
This exercise tests a candidate's attention to detail, knowledge of compliance requirements, and ability to identify and correct errors in financial records—crucial skills for maintaining accurate books and avoiding compliance issues.
Directions for the Company:
- Create a financial document (e.g., a balance sheet, tax form, or payroll report) with several intentional errors.
- Include various types of errors:
- Mathematical errors (numbers that don't add up)
- Classification errors (items in wrong categories)
- Compliance issues (missing required information)
- Formatting inconsistencies
- Provide any necessary reference materials about compliance requirements relevant to your industry.
- Allow 30-45 minutes for completion.
Directions for the Candidate:
- Review the provided financial document thoroughly.
- Identify and list all errors, inconsistencies, or compliance issues you find.
- Explain why each identified item is problematic.
- Provide corrections for each issue.
- Prioritize the errors based on their potential impact (high, medium, low).
- Suggest process improvements that could prevent similar errors in the future.
Feedback Mechanism:
- Acknowledge one category of errors they identified thoroughly.
- Point out one type of error or compliance issue they may have missed.
- Ask them to explain how they would adjust their review process to catch this type of error in the future.
- Give them 10 minutes to implement this adjusted approach and see if they can identify additional issues.
Frequently Asked Questions
How should we adapt these exercises for different levels of bookkeeping experience?
For entry-level candidates, simplify the exercises by reducing the number of transactions or complexity of errors. For senior bookkeepers, include more complex scenarios like multi-currency transactions, accruals, or industry-specific compliance requirements.
Should candidates be allowed to use reference materials during these exercises?
Yes, allowing candidates to use reference materials (like accounting principles guides) mirrors real-world conditions and tests their research skills. However, be clear about what resources are permitted and observe how efficiently they use them.
How do we evaluate candidates who use different accounting software than our company?
Focus on evaluating their understanding of accounting principles rather than software-specific skills. For the software proficiency exercise, consider offering a brief tutorial on your system before beginning, or allow them to use familiar software and demonstrate their adaptability during the feedback portion.
What if a candidate identifies issues we didn't intentionally include in the exercise?
This can actually be a positive sign of thoroughness! Evaluate whether their identified issues are valid concerns. If so, give them credit for this additional insight, as it demonstrates exceptional attention to detail.
How much weight should these work samples carry in our overall hiring decision?
Work samples should be a significant factor (approximately 40-60%) in your decision, balanced with behavioral interviews and reference checks. For bookkeeping roles specifically, practical skills demonstrated in these exercises are often more predictive of success than interview responses alone.
Can these exercises be conducted remotely?
Yes, all of these exercises can be adapted for remote administration using screen sharing, collaborative spreadsheets, and video conferencing. Consider sending materials in advance and using timed access to documents to maintain the integrity of the exercise.
The right bookkeeper can significantly impact your organization's financial health and operational efficiency. By incorporating these practical work samples into your hiring process, you'll gain valuable insights into candidates' real-world skills that traditional interviews simply cannot reveal.
Remember that the best hiring decisions come from combining these work samples with structured behavioral interviews and thorough reference checks. For additional resources to streamline your hiring process, check out Yardstick's AI Job Description Generator, Interview Question Generator, and Interview Guide Generator. You can also find more information about bookkeeper roles at our Bookkeeper Job Description page.
Ready to build a complete interview guide for hiring bookkeepers? Sign up for a free Yardstick account today!
Generate Custom Interview Questions
.svg)
