5 Interview Questions to Prepare for When Seeking a Career in Finance

We know how important it is to present yourself well when applying for a job you want. Learn how to prepare talking points when unsure which finance interview questions the interviewer will ask. 

Fortunately, there are ways to prepare for your finance interview, such as thinking through common questions and how you will answer them. Time spent preparing in advance increases your chances of coming across well and can help you enter the interview more confidently. We will explore some topics you should prepare to discuss before a finance job interview.

What is the finance industry?

Finance is the study of managing money. There are three types of finance: personal, corporate, and governing body. The vast finance industry comprises segments of the economy where companies and institutions offer financial services to commercial and retail clients. These services cover everything from banking, debt, credit, and capital markets to money and investments. Finance industries include banks, insurance companies, investment firms, and real estate companies. 

Five finance interview questions you should be prepared to answer

1. Tell us about yourself.

What they’re really asking: Why should we hire you for this position?

This question sounds broad and possibly easy to answer, but know that the interviewer is interested in learning certain things about you. You’ll want to tell them about yourself as it applies to the position you’re applying for. It’s your chance to explain who you are, how you became interested in finance, and why you would be a great candidate for the job.

Tell them about what sparked your interest in the industry. Do you know others who work in the industry, and was that how you first learned about it? Have you had prior job or study experience that interested you in entering the finance industry? 

Perhaps you don’t have direct experience in the position yet. Talk about skills and background you have that will make you strong in finance, and tell them why you are excited to join the industry. What strengths and talents will serve them well in this company? 

Other forms this question might take:

• Why do you want to work in the finance industry?

• Why are you the best candidate for this job?

• Tell us more about your background.

2. What would you say are your financial weaknesses and strengths?

What they’re really asking: How much expertise and insight do you have in handling finances?

This is a place to answer honestly while orienting your answer to the type of position you’re applying for. Your strengths might be accurately judging risk, working within a budget, setting and achieving financial goals, or something else. Describe why you think it’s your strength and give some examples. 

As for weaknesses, mention something while discussing how you have worked to become stronger in that area. For example, perhaps when you were first a young adult, you found yourself overspending. Describe the steps you took to curb that problem and how you turned that around to build up a healthy savings fund.

Other forms this question might take:

• What are your financial strengths?

• What are your financial weaknesses?

• How do you handle your finances?

3. What do you understand by the term "working capital"?

What they’re really asking: Do you clearly understand basic financial terms?

Working capital is a financial metric that measures how much money a company has to meet its daily operations or current short-term obligations. It comprises cash, inventory, accounts receivable, and accounts payable. It shows how financially stable a company is and how efficiently it is operating. Managing working capital is critical to a company maintaining enough cash flow to meet its short-term costs and obligations. When possible, share an example of your experience with working capital.

Other forms this question might take:

• How does a company track money available to meet daily operations?

• Why is working capital important?

• What is working capital made up of?

4. What are the three main types of financial statements?

What they’re really asking: Do you understand the basics of the financial statements critical to this industry?

Balance sheets are snapshots of what a company owns—its assets, liabilities, and shareholders’ equity—and what it owes at a fixed time. It doesn’t show money flowing in and out of the accounts.

Income statements are reports that show how much money a company makes and spends over a period of time. They also show the costs and expenses associated with earning that revenue. The statement usually has a bottom line that shows the company’s net earnings or losses or how much the company earned or lost during that period. Some employers may call this a statement of profit and loss, and it gives insight into a company's performance.

Cash flow statements show the company’s cash inflow and outflow over time. They typically review cash flow from operating, investing, and financing activities. Cash flow statements differ from income statements because, while an income statement tells you whether the company made a profit, a cash flow statement tells you whether or not it generated cash. 

Other forms this question might take:

• When would you use each of the three types of financial statements?

• What’s the difference between a balance, income, and cash flow statement?

• What kind of financial report shows what a company owns and owes at a fixed point in time?

5. How would you handle a stressful situation with a dissatisfied customer?

What they’re really asking: Do you have the customer service skills to handle difficult situations without alienating clients?

Talk through the steps you’ve taken in the past or would take with an unhappy customer. You might say, "I find the first step is always to make sure I’m truly hearing what the client is saying so we both know I understand the situation fully. When they know I’m paying attention to what’s important to them and acknowledge that they are justified in feeling frustrated, that goes a long way to helping us work together rather than being at odds with each other. Then I do whatever it takes to find the best solution.”

Other forms this question might take:

• Tell me about a time you had a high-stress situation with a customer and how you handled it.

• What’s your approach when standing in front of a highly dissatisfied customer?

• Tell me about your customer service skills.

What skills and qualities make you a top candidate for a finance job? 

A formal accounting education, financial reporting skills, and a strong knowledge of economics are important for employment in the finance industry.

Hiring managers in finance look for candidates with strong analytical skills who know how to efficiently and effectively gather the right information and analyse it. Continuing education and improvement are important for strong candidates with strong communication and interpersonal skills. Employers also look for candidates with excellent problem-solving skills and emotional intelligence. The ability to be self-motivated is crucial in the finance industry.

Tips on acing your finance interview

Practice answering these and other common finance questions with more than one person. Consider choosing one person who works in the finance industry and one who does not. After all, you don’t know if your interviewer will have a finance background and should be prepared to speak in terms that make sense to someone without that background.

Before answering, take a moment to gather your thoughts. Try to use examples of your skills and experience.

If your interview will be online, prepare in advance. Check your lighting at the same time of day as your interview, and arrange lights (or change your location) if needed so you look your best. Make sure your background looks professional. Arrange for children and pets to be out of the room. 

Next steps 

You can further prepare for finance jobs and job interviews by taking courses on Coursera. Consider Yale University’s Financial Markets and the University of Illinois’s Mergers and Acquisitions Specialisation.