Pre-Employment Accounting Test For Hiring

What is on Assessment Test for Accounting?

A pre-employment accounting test evaluates job candidates’ skills and knowledge required for accounting roles. These tests typically cover areas like principles of accounting, financial reporting, bookkeeping, payroll, tax preparation, data entry, Excel proficiency, attention to detail, and analytical abilities.

When searching for an accounting pro for your finance department, the CFO wants you to find someone who’ll not only crunch the numbers but is also a team player, a skilled analyst, and a consultant, helping the organization to reduce expenses, maximize income, and drive growth. 

But you’ve discovered that qualified, job-ready accountants are difficult to come by in today’s evolving job market.

Bloomberg reports that the number of students with Bachelor’s and Master’s degrees in Accounting reached an all-time high in 2012, but since then, the number of available accounting graduates decreased by nearly 7% in 2018, causing a shortage of competent accounting professionals.

“The turnover rate for qualified accountants in the corporate sector has nearly doubled compared to the standard, and many companies are under pressure,” said Gary Boomer, a strategist with Boomer Consulting Inc. “At the same time, the demand for accounting services has never been higher.”

With fewer applicants to choose from, it’s important to make sure the applicant you choose has the required skills. One way to ensure that new accountants in your organization have those skills is to use a powerful tool that can supercharge your hiring process: Pre-employment Accounting Tests.

Key Takeaways:

• Learn about Pre-employment Accounting Assessments
• Discover the different types of Accounting Tests
• Explore how you can use Accounting Assessments to streamline your hiring process

What is a Pre-Employment Accounting Test?

A pre-employment accounting test is a standardized assessment that helps organizations evaluate the skills, knowledge, and abilities of accounting job candidates. These types of tests are designed to objectively measure an individual’s proficiency in various accounting areas, providing insights beyond what a resume or interview can reveal.

By administering pre-employment accounting tests, organizations get a deeper understanding of the candidate’s technical competencies. 

Tests typically cover a range of accounting-related topics, including financial reporting, bookkeeping, payroll, taxation, auditing, and the use of accounting software programs. The tests may include multiple-choice questions and practical exercises to assess the candidate’s ability to apply accounting principles to real-world situations.

Benefits of Using Pre-Employment Accounting Tests for Hiring

In the current state of the accounting industry, finding qualified and job-ready accountants can be a daunting task. Fortunately, pre-employment accounting tests can be a go-to tool in the hiring process.

Evaluate Job-Fit: Assess a candidate’s mastery of specific accounting skills needed to fill the open position through Accounting tests. 

Assess Strengths and Weaknesses: Identify competency gaps in areas such as financial accounting, cost accounting, QuickBooks, and more with detailed reports created by the tests.

Standardized and Unbiased: Obtain an objective and unbiased assessment as opposed to unstructured interviews with pre-set accounting tests.

Saves Time and Money: Reduce turnover rates by hiring higher quality candidates, saving your HR team time and money.

Customizable Tests: Tailor test difficulty levels and covered topics to closely match your accounting role requirements.

Different Kinds Of Pre-Employment Accounting Tests

There is a wide range of pre-employment assessments catering to hiring needs across various accounting positions:

Entry-Level Accounting Tests

Entry-level accounting tests are assessments that evaluate candidates’ knowledge and skills related to basic accounting principles and practices. These tests are often used for entry-level accounting positions, such as accounting clerk, accounts payable clerk, and accounts receivable clerk.

Typing and Data Entry Skills Test

All office jobs today require a minimum level of keyboarding skills, not to mention an eye for detail. This simple assessment tool will show you who can quickly create accurate reports and communications.

• Data entry test: There are two subcategories, depending on the job description. Alpha Data Entry tests require job candidates to type simulated customer contact information, while the Numeric test, especially important for accounting roles, measures numerical accuracy (entering numbers only, no other characters).
• Typing test: The candidate types paragraphs in report format, which generates a score analysis, including gross and net typing speed, and shows typing mistakes.

Basic Accounting Skills Test

EmployTest offers a variety of pre-employment accounting assessments, such as:

• Accountant Knowledge: credits and debits, depreciation methods, inventory costing methods, basic math, and more.
  Bookkeeper Knowledge:  knowledge of balance sheet classification, annual reports creation, filing methods, calculating account totals and more.
• Business Documents: covering the details of official documentation.
• Credit and Debits: essentials of balancing accounts.
• Payroll: knowledge of various tax forms and payroll calculations.

The responsibilities of each position determine which accounting tests you should administer.

Microsoft Excel Skills Test

There’s a reason why testing for Microsoft Excel skills is a must for most hiring processes today. According to recent research, the average office worker spends 38% of their working day using Excel. For accountants, it could be double that amount.

With more than a hundred tools, formulas, functions, data visualization options, and additional valuable editing tools, Excel offers versatility like no other business analysis, data management, and reporting program.

But its complexity can also lead to mistakes. Even small mistakes can have serious consequences, as in the example of a cut-and-paste error that cost TransAlta Corp. $24 million.

Microsoft Excel skill assessments range from entry-level to advanced tests, simulating real-world tasks that the candidates will perform daily.

• Beginner Excel test: basic editing and formatting knowledge, such as creating workbooks, formatting text, and spreadsheet layout.
• Intermediate Excel test: pivot table creation, conditional formatting, and margin adjustments, plus beginner tasks.
• Advanced Excel test: editing pivot tables, data validation, and advanced customization and charts.

If these pre-set tests are not specific enough to the position you are trying to fill, you can create custom Microsoft Excel tests to reflect the requirements of your open position.

Mid-Level and Senior-Level Accounting Knowledge Skills Test

Accounting pros must be familiar with GAAP (Generally Accepted Accounting Principles), as well as major accounting software.

Higher-ranking accounting positions come with increased responsibilities and distinct challenges. Given the salary, replacement costs, and time invested in hiring, the cost of making a hiring mistake is significantly higher. This explains the need for candidates applying for mid- and senior-level accounting positions to undergo pre-employment testing.

When hiring for non-entry-level accounting positions, the accounting knowledge skills test can be used to assess candidates’ knowledge levels in these areas:

• Accounts Payable: billing methods and analyzing assets and liabilities.
• Accounts Receivable: credit term calculation methods, balance sheet listing, auditing receivables, and more.
• Advanced Accounting: calculating basic owner equity and variable costs, breakeven analysis knowledge, and more.
• Cost Accounting: knowledge of fixed and variable costs, inventory methods, and variance analysis.
• Financial Statements: knowledge of ROIs, gross profit percentage, return on equity, and more.

Management and Supervisor Aptitude Tests

There are no guarantees that an experienced accountant can effectively lead an accounting team. Beyond accounting expertise, higher positions require superb managerial skills.

Management aptitude tests can show:

• Interpersonal effectiveness
• Performance orientation and drive
• Influence on others
• Problem-solving
• Stress management
• Self-confidence
• Delegation

Resumes and interviews aren’t consistently reliable enough to know if they will succeed as a supervisor. Administering a quick 15-minute Supervisor Profile, and assessing personality traits such as the candidate’s reliability, self-confidence, and candidness can give you more confidence in your hiring decision.

Managers and supervisors play an essential role in motivating others to perform at a high level and achieve goals. With pre-employment management and supervisor aptitude tests, you get a step closer to finding the right person to lead your accounting team.

How To Effectively Use Pre-Employment Accounting Tests For Hiring

Here are some tips to leverage pre-employment accounting tests and seamlessly integrate them into your existing hiring process:

Determine Key Job Competencies

Carefully analyze the key skills and proficiencies needed for the accounting role you are hiring for. This clarity will allow you to pick appropriate test modules.

Define Pass Score Benchmarks

To identify highly proficient candidates, establish pass score benchmarks for each test section. Communicate these requirements clearly to the candidates in advance.

Use As Early Screening Tool

Use accounting tests right at the start of the hiring funnel to screen candidates faster without overburdening your interviewers initially.

Assess Test Results Objectively

While test scores provide crucial insights into a candidate’s accounting expertise, also account for cultural fit and soft skills during your overall evaluation.

Combine With Interviews

Accounting tests add an objective layer to your hiring process. But also conduct follow-up interviews with shortlisted candidates before deciding on fit.

Conclusion

Healthy, stable financials are the backbone of every business, not to mention a decisive factor in an organization’s success. EmployTest offers in-depth hiring assessments that provide valuable insights on candidates beyond traditional methods, helping you select the best talent for your organization.

Request a free sample of our accounting skills test to learn more, and contact us to find out how we can help you hire the best person for the job.