Financial Planner

At the time of the purchase, there is a cash outflow (cash flow statement) and PP&E goes up (balance sheet). Over the life of the asset it is depreciated. This shows up a reduction in net income (income statement) and PP&E (balance sheet) decreases by the amount depreciated. At the same time retained earnings (balance sheet) also goes down. However, the depreciation is added back in the cash from operations section (cash flow statement) as it is a non-camsh expense the reduced net income.

Net income has to be adjusted to reflect an increase in accounts receivable since the company never actually received the funds. As the cash flow statement begins with net income, it shows a cash reduction what accounts received increases.

A deferred tax liability is just the opposite of a deferred tax asset. The deferred tax liability occurs when a tax expense reported on the income statement is not paid to the IRS during the same period it is recognized--it's paid at a future date. Deferred tax liabilities can result when there are differences in depreciation expense between book reporting (GAAP) and IRS reporting which lead to differences income as reflected on a companies income statement versus what's reported to the IRS--and which results in lower taxes payable to the IRS (in the short run).

A multi-part question such as this will reveal how your prospective finance manager navigates challenging waters. Do they rise to the occasion, communicate clearly and foster win-win partnerships, or are they more likely to say nothing and carry-on. Ultimately, a finance manager is a liaison to several different departments, supporting them to achieve their strategic objectives, while managing their own team. You need a strong problem solver and communicator in this role.

“The why is typically much more important than the whom, So identify someone who has qualities you admire or has done something you aspire to do, and clearly articulate the specific reasons you admire that person. Avoid someone who could be controversial, if at all possible.”

With more businesses focusing on culture and fit, this question allows interviewers to see if your values mesh with the company’s.

By definition, working capital is current assets minus current liabilities. The working capital figure shows a financial manager how much of an organization's cash is tied up in items such as accounts receivables and inventory. It also indicates how much cash is going to be required to pay off short term debt and obligations over the next year.

Not all administrators need to be excellent problem solvers so if you are not the best, be honest and say so. You could say that you are not good at solving problems but you understand the skills of your colleagues well and will always be able to persuade somebody to assist.

Answer that by staying organised and keeping a strict diary you find that stress does not become a real issue. As soon as you identify a possible delay due to high work volumes you raise this with your manager to see if the work can either be reallocated or given priority.

Say that you deal with authority as you deal with customers - with integrity, professionalism and politeness.

☛ How do you stay up-to-date with changes to tax and investment regulations?

☛ Tell me about a time your advice to senior managers resulted in higher revenues.

☛ Describe a time you used analytical skills to explain the risks of a potential investment.

☛ Have you ever made a bad financial decision? If so, what happened and what did you learn from that experience?

☛ Do you prefer giving presentations or preparing written reports? Why?

☛ What visual aids would you use to deliver a presentation on a new financial plan to senior managers? Why?

☛ If you want to prevent a manager from making an investment, how do you ensure they understand the risks?

☛ We are planning to open a new store in the next two years. When does your role in this project begin and what do you think are your main responsibilities?

☛ How would you help employees shift from a “this is how it’s always done” approach to embracing new processes you implement?

Yes, it is. A company that is selling off inventory but delaying payables will show positive cash flow for a while--even though they're in trouble. Another example would be where a company has strong revenues for the period but future forecasts show that revenues will decline. This would happen when a company hasn't focused on making sure there were new prospects/sales in the pipeline.

This question allows you to see how effectively the candidate assesses the scenario. Can they determine a reasonable timeline for informing upper management of the error, and do they offer a unified front with their colleague when it comes to that conversation? How your prospective finance manager answers this question will reveal their views on leadership – invaluable information when you are trying to make a hiring decision.

The best way to stay organised is to keep a log of every request and each task completed so that nothing is accidentally left to go past a deadline. Mention any software that you use for this purpose.

If pushed too far you would consider speaking to your manager about workloads and expectations and try to resolve the situation.

Unlike general expenses that provide benefit over a short period time (i.e., employee's work, taxes, etc.), capital expenditures provide benefit over a longer period of time. Due to the duration of their estimated benefit--usually several years--capital expenditures are capitalized on the balance sheet, where shorter term expenditures are expensed on the income statement. This is the difference between an asset and an expense.

☛ What are the first questions you ask about a new client or project?

☛ What is your client portfolio?

☛ Walk me through the process of assessing our current financial status.

☛ How do you check your work for accuracy? (e.g. ensuring correct data entry in large spreadsheets)

☛ What methods/metrics do you use to evaluate a company’s performance?

☛ What is a cash flow statement? Is this enough to tell whether a company is profitable?

☛ What financial management software do you have experience working with?

☛ In your opinion, what are the biggest untapped markets and most challenging financial regulations in our industry?

I take pride my organization skills. I believe my attention to detail and desire to stay organized can only benefit the team I am working with.

I like to think outside of the box.