Two people working in financial services being interviewed.
Graphic that shows three different types of interview questions you should be asking.

Use these questions to identify a candidate’s technical knowledge and abilities

Use these questions to determine how a candidate handled situations in the past

Use these questions to assess a candidate’s personal traits and cognitive skills

Why this matters:

Debt and equity are the two primary forms of funding company growth, and there are advantages and downsides to each. For example, while equity financing is advantageous in the sense that there’s no repayment obligation or interest on the funds, it does dilute control of the principal stock owners. And while debt provides more control, it also comes with more risks, like bankruptcy.

What to listen for:

  • Candidates should be comfortable discussing these financial concepts and display an intimate knowledge of the pros and cons of each.
  • Top answers will emphasize the company’s goals (e.g. debt helps management retain control).

Why this matters:

A financial model provides a summary of a company’s expenses and earnings in spreadsheet form. These models allow companies to determine the impact of a future event and can help guide the decision-making process. There are different types of financial models, but they share a common purpose: pulling together data to inform the reader.

What to listen for:

  • Answers should stress the importance of displaying complex information in a clear, consistent way.
  • Candidates should mention color coding, cross-checking capabilities, and the ability to produce a dashboard of graphics to easily display key metrics.

Why this matters:

A true financial specialist will know that every company has different reasons for entering into a merger or acquisition (M&A) agreement. That means there’s no one simple answer to this question, but qualified finance professionals should have no difficulty discussing some of the key factors at play in most cases.

What to listen for:

  • Answers may include sharing resources, taking control of a larger percentage of the market share, and eliminating direct competition.
  • Top candidates may also touch upon the factors that lead to a successful M&A agreement, like harmonious corporate cultures.

Why this matters:

Disagreement and differing viewpoints aren’t just common in business—they help build healthy discourse. You want to know that your candidate can be tactful, but they should also be willing to stand up for their convictions and possibly take an unpopular stand, especially if they’re confident it’s in the best interests of the company.

What to listen for:

  • Look for candidates who gather all the relevant facts before making a stand, rather than acting impulsively.
  • Pay attention to the candidate’s attitude when they answer—a smug or frustrated tone may be a red flag.

Why this matters:

Everyone has faced significant challenges or failed at one time or another—but the way they handle these hurdles can tell you a lot about their character. In finance, being able to manage pressure is a requisite. This question can help you assess whether your candidate is equipped to navigate pressure and come out the other end stronger for it.

What to listen for:

  • Good answers might focus on incomplete data, an obstructive manager, or an unrealistic deadline.
  • If a candidate is reluctant to share a challenge or claims they’ve never really faced one, this could be a bad sign.

Why this matters:

Qualified finance professionals read the numbers. Great finance professionals have an innate and holistic understanding of them. On paper, numbers can look good or even too good, but your new hire will ideally have an intuitive feel for when things don’t add up, and they won’t hesitate to put in the work to double-check.

What to listen for:

  • Answers may mention factors like projections seeming too rosy or an impending competitive threat being underestimated.
  • Great candidates will display a strong sense of what drives metrics and the importance of qualitative factors.

Why this matters:

This question can help you assess a candidate’s leadership potential and strategic thinking. Even if they don’t know a great deal about your company’s financial standing, they should be able to apply their knowledge of the market to pinpoint key concerns and highlight some strategies they’d focus on.

What to listen for:

  • Look for candidates who can quickly provide a high-level overview of the company’s financial position.
  • Top answers will touch on each of the three financial statements—the income statement, balance sheet, and statement of cash flows.

Why this matters:

Evaluating the financial health and future of companies is one of the key roles of a financial manager or executive. With this question, you’re not interested in what stock the candidate chooses to discuss, but the thought process behind it. A candidate who is passionate about finance will want to have skin in the game, so they’ve likely pondered this question already.

What to listen for:

  • Look for candidates who display knowledge and curiosity about both quantitative and qualitative measures.
  • Strong answers will demonstrate the candidate’s ability to persuasively articulate their thoughts.

Why this matters:

Finance professionals don’t just work with others in the finance department. They need to work with legal and compliance teams for reporting, operations to source numbers, investor relations to explain performance, and management and the board of directors to analyze performance and help chart the company’s future. Teamwork and communication skills are critical to getting the job done.

What to listen for:

  • Look for answers that highlight a commitment to strong collaboration and communication.
  • If a candidate positions themselves as the hero and doesn’t give credit to fellow team members, they may not be a team player.