While you have a good grip on the knowledge related to finance management, you need to know that the nature of questions in finance manager interviews can vary from knowledge-based to technical and behavioral. Preparing yourself will make you more confident so, here we have 20 finance manager interview questions along with tips and sample answers to help you go through your interview smoothly.
1. Why Do You Want to Work with Us as a Finance Manager?
Here, the interviewer is trying to assess why you have applied for this job. Your answer will help him decide if he should choose you instead of other candidates.
Tip 1: Talk about what you want to accomplish as a finance manager.
Tip 2: Discuss why you chose to apply for this post.
“Completing my education in the finance major made me highly interested in pursuing my career as a finance manager. I am looking forward to making the most out of my skills and knowledge. Working with your reputed organization will allow me to excel in my career and have an insightful journey.”
2. Shed Some Light on Your Working Experience as a Finance Manager.
Here, the interviewer wants to know about your past jobs and experiences as a finance manager. He will assess your skills and know if you hold up to their standards.
Tip 1: Read the job description before you appear for your interview and relate it with your past experience.
Tip 2: Your answer should reflect on how you brought value to the company.
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“As a finance manager with ABC Company, I worked on numerous projects. I was responsible for preparing the financial plans and strategies for projects, keeping the records, and leading my team to rational decisions. I always managed to meet the deadlines, which helped the company minimize their expenses and maximize their earnings.”
3. How Can You Benefit our Company with Your Knowledge and Skills?
By what you answer, the interviewers will try to assess the value you can bring to their company.
Tip 1: Highlight your skills and knowledge areas.
Tip 2: Your answer should demonstrate how you can be a beneficial asset to the company.
“Throughout my career, I have always focused on improving my skills and knowledge. Time management, transparent communication, and a planned schedule are my priority areas. These help me fulfill my roles and responsibilities efficiently and effectively. I believe I can help this company maximize the profits with my utmost dedication.”
4. Why Do You Think Financial Management is Important for a Company?
From your answer, the interviewer will assess if you are pursuing finance management as a career simply to earn or because you share the same perspective as core objectives and principles of financial management.
Tip 1: Relate your ideas with the objectives of financial management.
Tip 2: Highlight the legal significance of financial management for business.
“Financial management is important for every company, no matter what scope, as it helps run a business successfully. Enough supply of funds, managing shareholders’ ROIs, framing financial policies, filing tax returns, and fulfilling legal requirements, and ensuring financial control helps a business meet organizational and legal demands.”
5. Can a Company be in a Huge Trouble but Still Show Positive Cash Flows?
Here, the interviewer wants to judge how well you know the techniques and tactics of maintaining the organizational reputation to ensure you do not lose existing clients.
Tip 1: Answer by your knowledge and experience.
Tip 2: Offer at least two options/ways.
“It is definitely possible for a company to reflect positive cash flows but actually be in huge financial trouble. While there are several ways to do so, two significant ones can be by showing improvements in working capital (by selling inventory but delaying payables) and including a lack of revenues in the pipeline. These can largely help a company save its public reputation in the hour of need.”
6. If You Ever Disagreed with Your Superior, How Did You Manage the Situation?
A good finance manager might have a conflict with superiors but always handles the situation ethically and professionally. Here, the interviewer is trying to judge your ethical and professional values as a finance manager.
Tip 1: Include an example of your past experience that ended well.
Tip 2: Explain how you would handle the situation positively.
“I once disagreed with my executive regarding the financial plan for a project. However, I calmly discussed it with my bosses and together came up with a solution that would benefit the company more than it would benefit us individually. As an employee, I always keep a professional and respectful attitude towards my superiors.”
7. How Would You Handle a Mistake Made by Your Subordinate at a Critical Time During a Project?
Sometimes, a small mistake at a critical time can put the entire project at stake. Here, the interviewer is trying to analyze your attitude as the team leader and how you would react towards a subordinate’s mistake.
Tip 1: Your answer should reflect a positive and encouraging attitude.
Tip 2: Explain how you would ensure the mistake does not happen again.
“I always plan my projects in a way that there is enough room to face any such challenges. If my subordinate commits a grave mistake, I will try my best to show him what and where he did wrong, how he can avoid it next time, and engage him in a short exercise as a practice before letting him work on the same thing again.”
8. What is Strategic Financial Management?
Here, the interviewer is trying to evaluate your knowledge regarding financial management.
Tip 1: Give a brief answer.
Tip 2: Explain the significance and how it works.
“Strategic financial management is all about managing the finances of a company under a sound strategy. It helps achieve the company’s goals and objectives while increasing profits, ROIs, and shareholder value.”
9. Describe Your Role as the Finance Team/Department Leader.
Here, the interviewer wants to judge is you are capable of leading a team or a department.
Tip 1: Your answer should demonstrate your team management and leadership skills.
Tip 2: Offer a realistic explanation.
“As the leader of a finance team, I will make sure that I fulfill my responsibilities timely to make my team follow the same path. I will ensure transparent communication to keep everyone on the same page. With my positive and flexible attitude, I will maintain a professional environment.”
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10. How Would You Eliminate Errors while Recording Financial Documents?
Here, the interviewer is trying to assess your risk and error management skills.
Tip 1: Enlist ways to eliminate human errors.
Tip 2: Offer a realistic explanation.
“To eliminate human errors, I recommend using reliable software and ensure double-checking. Also, I will make sure the responsible team member does not have a lot of workloads.”
11. How Helpful is a Cash Flow Statement to a Company?
By what you answer, the interviewer will know how valuable you think a cash flow statement is.
Tip 1: Explain the significance of a cash flow statement.
Tip 2: Be precise!
“A cash flow statement is largely helpful in recording the liabilities and assets of a company and helps evaluate a company’s financial state.”
12. Where Do You See Yourself in 5 Years?
Here, the interviewer wants to know your ambitions and objectives as a finance manager. It helps the interviewer judge if your goals align with the company’s outlook.
Tip 1: Enlist your goals and objectives.
Tip 2: Be realistic.
“In 5 years, I see myself working as a finance manager with a reputed organization. I look forward to gaining enough skills and experience to offer enough value to my career and each project I take part in.”
13. How Do You Manage Your Time as a Finance Manager?
By what you answer, the interviewer will evaluate if you are good at time management as it is one of the most important skills for a finance manager to acquire.
Tip 1: Your answer should demonstrate that you are a punctual individual.
Tip 2: Describe your time management approach.
“I believe in following a schedule to make sure that things get done on time. I include must-do tasks in the initial hours of the day while leaving the rest for later.”
14. How Would You Manage to Meet a Tight Deadline?
Here, the interviewer wants to know how well you can handle a tough situation.
Tip 1: Describe your approach briefly.
Tip 2: Your answer should reflect that you have a confident and positive attitude.
“I usually start off by making a quick plan to sort out things according to the available time and resources. I would break down the tasks into small deliverables and prioritize them as per the requirements.”
15. What Tools and Equipment Have You Previously Used as a Finance Manager?
By what you answer, the interviewer wants to know if you have a good know-how of financial management tools and software.
Tip 1: Enlist the tools and equipment you have used.
Tip 2: Show that you are good at operating the tools.
“I learned to use various financial management tools, including software during my educational years, such as Oracle, Tibero, and Microsoft SQL. As a finance manager, I have been using Oracle for the past few years and have a good grip at SQL.”
16. How Good Are You at Preparing Financial Reports?
Here, the interviewer wants to evaluate your efficiency with reporting tasks.
Tip 1: Your answer should demonstrate your knowledge of financial reports.
Tip 2: Share your practical expertise.
“Preparing financial reports is something I did the most during my educational years. As a finance manager, I have a great experience with preparing financial reports. My knowledge helps me understand reporting tools with great accuracy and efficiency.”
17. What is the Difference between Earnings per Share and Diluted Normalized Earnings per Share?
The interviewer wants to test your theoretical knowledge here.
Tip 1: Answer precisely.
Tip 2: Focus on explaining the difference well.
Earnings per share (EPS) and diluted earnings per share help in calculating the companies’ profitability. However, EPS only includes common shares, while diluted EPS also account for convertible securities like convertible bonds and preferred stocks.”
18. Differentiate between Free Cash Flow to Firm (FCFF) and Free Cash Flow to Equity (FCFE).
Here, the interviewer wants to evaluate your theoretical understanding of significant terms in finance management.
Tip 1: Always revise technical terms before the interview.
Tip 2: If you do not know the exact differences, answer with your understanding.
“FCFF does not include the interest expense and net debt repayments, whereas FCFE includes both of these factors to measure levered free cash flow.”
19. What Do You Understand by Interest Rate Swap?
Here is another technical question to understand your knowledge.
Tip 1: Share your understanding.
Tip 2: Answer professionally.
“Interest rate swap helps companies exchange their interest rate payments. These are really helpful when one company wants a variable interest rate while others prefer a fixed-rate payment. Length and terms of the swap are the most significant factors in an interest rate swap.”
20. What Do You Know About Working Capital?
By what you answer, the interviewer will judge your understanding of terminologies used in everyday financial management.
Tip 1: Give a confident answer. The interviewer does not demand a theoretical definition but a practical understanding.
Tip 2: Stay precise.
“Subtracting current assets from current liabilities gives the working capital. It acts as the financial statement and tells how much cash the business has, including receivables and inventory. It also gives a good idea of the liabilities that need to be paid off in the next 12 months.”
These are but a few financial manager interview questions that you need to prepare yourself before attending an interview. Hopefully, these interview questions for finance managers will help you land your next dream job.