Preparing for a General Ledger (GL) interview can feel overwhelming, especially since the role requires both technical accounting expertise and a keen eye for detail. The interviewer will likely assess your understanding of accounting principles, financial reporting, reconciliations, and system knowledge.
In this guide, we’ll walk you through 50 of the most common General Ledger interview questions and answers. Whether you’re an experienced accountant or a new graduate, these sample responses will help you feel more confident and ready to make a strong impression.
Tips to Answer General Ledger Interview Questions
1. Understand the Fundamentals of Accounting:
Make sure you can clearly explain accounting concepts such as debits, credits, journal entries, and accruals. Employers expect GL accountants to understand how transactions affect the balance sheet and income statement. Review your double-entry accounting principles before the interview.
2. Use Real Examples:
Whenever possible, back up your answers with examples from your past experience. For instance, describe how you handled month-end closing, reconciled accounts, or identified discrepancies. Real scenarios show practical understanding and problem-solving skills.
3. Be Comfortable With Accounting Software:
General Ledger roles often require experience with ERP systems like SAP, Oracle, or NetSuite. Mention specific modules you’ve used and how you leveraged automation tools to improve efficiency or accuracy.
4. Highlight Your Attention to Detail:
Since GL accountants ensure accuracy across accounts, interviewers value precision. Share stories where your attention to detail helped catch errors, ensure compliance, or support accurate financial reporting.
5. Emphasize Deadlines and Collaboration:
Month-end and year-end closings require teamwork and time management. Talk about how you work cross-functionally with accounts payable, receivable, and finance teams to meet deadlines without compromising accuracy.
6. Demonstrate Analytical and Problem-Solving Skills:
Interviewers appreciate candidates who can analyze financial data to identify trends or discrepancies. Explain how you interpret variances and support management in decision-making with data-driven insights.
General Ledger Interview Questions and Answers
1. Can You Explain the Purpose of a General Ledger?
How to Answer: Describe what a general ledger is and how it serves as the foundation of accounting records.
Sample Answer: The general ledger is the central repository of all financial transactions within an organization. It summarizes data from sub-ledgers like accounts payable and receivable into account balances. The GL ensures that every transaction is properly recorded under the correct account, providing accurate financial statements such as the balance sheet and income statement. For example, in my previous role, I regularly reviewed GL postings to confirm they matched sub-ledger totals, ensuring compliance and supporting accurate monthly reporting.
2. What Are the Main Components of a General Ledger?
How to Answer: List the key elements and their purpose.
Sample Answer: The main components of a general ledger include account codes, account titles, debit and credit columns, and the balance column. Each entry includes a date, description, and reference number. Together, these elements provide a detailed financial record of all business transactions. In my experience, maintaining accurate descriptions and coding structures helped streamline audit reviews and ensure compliance with company accounting policies.
3. What Is the Difference Between a General Ledger and a Sub-Ledger?
How to Answer: Define both and explain how they relate.
Sample Answer: A general ledger contains the summary of all accounts, while sub-ledgers contain detailed transaction-level data for specific accounts like accounts payable, accounts receivable, or fixed assets. The total of each sub-ledger is periodically posted to the GL. For example, in my previous role, I reconciled the accounts payable sub-ledger to the general ledger monthly to ensure both matched and discrepancies were promptly resolved.
4. How Do You Perform a Bank Reconciliation?
How to Answer: Walk through the process clearly.
Sample Answer: To perform a bank reconciliation, I start by comparing the bank statement with the company’s cash account in the general ledger. I identify timing differences such as outstanding checks or deposits in transit. Then, I adjust for bank fees, interest, and any errors. Finally, I ensure the adjusted GL balance matches the bank’s ending balance. In my last position, I automated part of this process in Excel to reduce reconciliation time by 20%.
5. Describe the Process of Month-End Closing.
How to Answer: Explain step-by-step what’s involved.
Sample Answer: The month-end closing process involves reviewing all journal entries, ensuring all transactions are posted, reconciling accounts, and preparing preliminary financial reports. I verify accruals and prepaid expenses are properly recorded, reconcile intercompany accounts, and ensure sub-ledgers tie to the GL. Once confirmed, I prepare adjusting entries and finalize financial statements. In my previous job, I collaborated with various departments to ensure a smooth close by the fifth business day each month.
6. What Are Journal Entries and Why Are They Important?
How to Answer: Define journal entries and their purpose.
Sample Answer: Journal entries record financial transactions in the accounting system, showing which accounts are debited and credited. They’re essential for maintaining accurate and traceable financial records. For instance, when recognizing revenue or recording accruals, journal entries ensure that income and expenses are captured in the correct period. I always include clear descriptions and supporting documentation to make audits and reviews efficient and transparent.
7. How Do You Ensure Accuracy in General Ledger Entries?
How to Answer: Discuss methods and checks you apply.
Sample Answer: I ensure accuracy by validating data sources before posting entries, reviewing supporting documents, and performing reconciliations regularly. I also follow internal controls, such as approval hierarchies for journal entries. For example, in my last role, I created a checklist for recurring entries and cross-checked account balances each month, which significantly reduced posting errors.
8. What Is the Difference Between Accrual and Cash Accounting?
How to Answer: Define both and explain their impact.
Sample Answer: Accrual accounting records revenues and expenses when they’re earned or incurred, regardless of cash movement. Cash accounting, on the other hand, records transactions only when cash is received or paid. For instance, under accrual accounting, an invoice is recorded as revenue when issued, not when paid. I’ve always worked with accrual-based systems since they provide a more accurate view of financial performance.
9. How Do You Handle an Account Reconciliation Discrepancy?
How to Answer: Show your investigative and problem-solving skills.
Sample Answer: When I find a discrepancy, I first trace each transaction to its source documents to identify the root cause, such as timing differences, data entry errors, or misclassifications. Once identified, I correct the error and document the adjustment. For example, I once discovered a recurring mismatch in our payroll account caused by timing differences in posting benefits expenses, which I resolved by aligning the posting schedule with payroll runs.
10. Explain the Importance of Trial Balances in the GL Process.
How to Answer: Explain purpose and process.
Sample Answer: A trial balance lists all general ledger accounts with their debit and credit balances, ensuring total debits equal total credits. It helps verify the mathematical accuracy of postings before preparing financial statements. I use trial balances to review account anomalies and confirm all adjustments are captured. At my previous company, generating trial balances weekly helped us detect posting issues early and improve reporting accuracy.
11. How Do You Record Depreciation in the General Ledger?
How to Answer: Outline the process and logic.
Sample Answer: Depreciation is recorded to allocate the cost of fixed assets over their useful life. Typically, a debit is made to the depreciation expense account and a credit to accumulated depreciation. I calculate monthly depreciation using the company’s chosen method, such as straight-line or declining balance, and ensure all entries align with the fixed asset register. In my last role, I automated depreciation schedules using Excel, which reduced manual errors and ensured consistent monthly postings across all asset classes.
12. What Is a Suspense Account and When Is It Used?
How to Answer: Define and provide an example.
Sample Answer: A suspense account is a temporary account used when there’s uncertainty about where to post a transaction. It allows transactions to be recorded while awaiting clarification. For instance, if a payment is received without an identifiable reference, I place it in a suspense account until the correct customer or account is confirmed. I always clear suspense accounts during month-end to ensure accuracy in financial reporting.
13. Describe Your Experience With ERP Systems.
How to Answer: Focus on systems used and tasks performed.
Sample Answer: I’ve worked extensively with ERP systems like SAP and Oracle, primarily for journal entries, reconciliations, and financial reporting. I’ve used SAP’s FI module for GL management, including configuring recurring entries and extracting financial data. I also trained new users on best practices to maintain data consistency. Implementing system-based controls reduced manual posting errors and improved data integrity in my team.
14. How Do You Handle Intercompany Transactions?
How to Answer: Explain the process and controls.
Sample Answer: I record intercompany transactions by ensuring both entities use consistent documentation and account codes. Each side records a corresponding debit and credit entry. I reconcile intercompany balances monthly to ensure all amounts agree and investigate any differences. In my previous position, I developed a reconciliation template that made it easier to match intercompany entries, reducing unresolved balances by 90%.
15. What Steps Do You Take to Prepare for an Audit?
How to Answer: Mention organization and documentation.
Sample Answer: Before an audit, I ensure all reconciliations are up to date and properly supported with documentation. I prepare detailed schedules for significant accounts, review prior-year audit findings, and resolve any pending issues. During the audit, I assist auditors by providing requested documents promptly. For instance, I helped my previous company complete a year-end audit with zero major findings by maintaining clear audit trails and thorough documentation throughout the year.
16. How Do You Ensure Compliance With Accounting Standards?
How to Answer: Discuss your awareness and process.
Sample Answer: I stay updated on accounting standards like GAAP or IFRS through continuous training and reviewing accounting updates. I ensure that all journal entries comply with applicable standards, particularly regarding revenue recognition and expense accruals. In my previous role, I also participated in internal training to align our reporting with new lease accounting standards, ensuring company-wide compliance.
17. What Is a Chart of Accounts and Why Is It Important?
How to Answer: Define and explain purpose.
Sample Answer: A chart of accounts is a structured list of all accounts used to record transactions in the general ledger. It organizes financial data by categories like assets, liabilities, income, and expenses. A well-designed chart of accounts supports accurate financial reporting and analysis. I once redesigned a company’s chart of accounts to eliminate redundant codes, simplifying reporting and improving transparency.
18. How Do You Manage Recurring Journal Entries?
How to Answer: Explain your approach and controls.
Sample Answer: Recurring journal entries are used for regular expenses like rent or depreciation. I review each recurring entry periodically to confirm it’s still accurate and relevant. Most ERP systems allow automation, but I still perform spot checks for reasonableness. In my last role, I set reminders for quarterly reviews of recurring entries to ensure alignment with updated contracts or expense structures.
19. Describe How You Reconcile Accounts Payable and Accounts Receivable to the General Ledger.
How to Answer: Outline key reconciliation steps.
Sample Answer: I start by comparing sub-ledger totals for accounts payable and receivable with their corresponding GL control accounts. Any differences are investigated, often stemming from timing issues or incorrect postings. I trace discrepancies to supporting invoices or receipts and correct them before closing. Regular reconciliations ensure accurate balances and reliable financial reporting.
20. How Do You Handle Adjusting Entries at Month-End?
How to Answer: Provide clear steps and reasoning.
Sample Answer: I review all accounts to identify unrecorded expenses, prepaid items, and accruals. Based on supporting documentation, I prepare adjusting entries to ensure that revenues and expenses are recorded in the correct period. I document each adjustment with clear explanations for audit trails. For instance, I once corrected prepaid insurance allocations that were incorrectly expensed, improving month-end accuracy.
21. What Are the Typical Controls in a General Ledger System?
How to Answer: Mention controls and their purpose.
Sample Answer: Typical controls include segregation of duties, approval workflows for journal entries, system access restrictions, and reconciliation procedures. These controls help prevent unauthorized transactions and ensure data accuracy. In my last role, I worked closely with internal audit to strengthen approval controls for high-value entries, reducing the risk of posting errors.
22. How Do You Verify That the General Ledger Balances With the Trial Balance?
How to Answer: Describe your review process.
Sample Answer: I generate the trial balance from the GL and ensure all accounts are included. I then verify that total debits equal total credits. If differences arise, I check for unposted or misclassified entries. In one instance, I identified an issue caused by a misconfigured system setting that excluded certain accounts, which I corrected before finalizing financial reports.
23. How Do You Record Accrued Expenses?
How to Answer: Explain with an example.
Sample Answer: Accrued expenses are recorded when an expense is incurred but not yet paid. I debit the expense account and credit accrued liabilities. For example, if utilities for December are invoiced in January, I record an accrual in December to match the expense with the period it occurred. This ensures compliance with the matching principle in accounting.
24. Describe How You Manage Prepaid Expenses.
How to Answer: Show how you handle deferrals.
Sample Answer: When recording prepaid expenses, I initially debit a prepaid account and credit cash or accounts payable. Each month, I allocate a portion to the expense account based on the coverage period. For instance, I once created an amortization schedule for annual insurance payments, which helped automate monthly allocations and reduce manual adjustments.
25. What Are Common Errors Found in the General Ledger and How Do You Prevent Them?
How to Answer: Mention specific examples and preventive actions.
Sample Answer: Common GL errors include incorrect account coding, duplicate entries, and unbalanced postings. I prevent these by using validation rules, performing reconciliations, and reviewing exception reports regularly. In one case, I implemented a review checklist that flagged potential duplicate journal entries, reducing rework and improving accuracy.
26. How Do You Handle Foreign Currency Transactions in the GL?
How to Answer: Describe your approach and key steps.
Sample Answer: For foreign currency transactions, I record entries using the exchange rate on the transaction date. At period-end, I revalue foreign currency balances to reflect current exchange rates, recognizing any gains or losses. I also ensure that rate sources are consistent and approved by finance. This process helped my previous company manage currency exposure effectively.
27. How Do You Ensure Proper Cutoff for Month-End Transactions?
How to Answer: Show understanding of timing and accuracy.
Sample Answer: I review transactions near the month-end date to ensure they’re recorded in the correct accounting period. I work with other departments to identify pending invoices or shipments that may impact revenue or expense recognition. For example, I once implemented a cutoff checklist that ensured timely posting of expense accruals, improving accuracy in our monthly reporting.
28. What Is the Difference Between a Debit and a Credit?
How to Answer: Define both clearly.
Sample Answer: A debit increases asset and expense accounts, while a credit increases liability, equity, and revenue accounts. Debits and credits must always balance in double-entry accounting. Understanding their impact ensures accurate recording of financial transactions and reliable financial statements.
29. How Do You Handle an Unbalanced Journal Entry?
How to Answer: Explain step-by-step correction process.
Sample Answer: If a journal entry is unbalanced, I first identify the error by reviewing each line item for data entry mistakes or missing accounts. I verify supporting documents to ensure all components are captured. Once corrected, I revalidate that debits equal credits before posting. I always document the issue and resolution to prevent recurrence.
30. How Do You Prepare Financial Statements From the General Ledger?
How to Answer: Outline your process.
Sample Answer: I begin by generating a trial balance from the GL to ensure balances are accurate. Then I categorize accounts into financial statement sections like assets, liabilities, equity, income, and expenses. I prepare the balance sheet, income statement, and cash flow statement, reconciling any unusual variances. In my last role, I automated this process through SAP’s reporting tools, which improved timeliness and accuracy of financial reporting.
31. How Do You Handle Reclassifications in the General Ledger?
How to Answer: Explain what reclassifications are and your process for managing them.
Sample Answer: Reclassifications are adjustments made to move amounts between accounts to ensure proper financial statement presentation. When I identify a misclassified entry, I prepare a reclassification journal entry, ensuring the total debits and credits remain equal. I always include a detailed explanation and supporting documentation for the adjustment. For example, in my previous role, I reclassified certain marketing costs from administrative expenses to operating expenses, improving the accuracy of departmental reporting and budget variance analysis.
32. What Is the Role of Internal Controls in General Ledger Accounting?
How to Answer: Highlight the importance and examples of controls.
Sample Answer: Internal controls in GL accounting ensure data integrity, prevent fraud, and maintain compliance with company policies and regulations. Examples include approval workflows, segregation of duties, and reconciliation procedures. In my previous position, I helped design a journal entry approval process requiring management sign-off for entries over a certain threshold, which strengthened financial oversight and reduced the risk of unauthorized adjustments.
33. How Do You Handle Journal Entry Approvals?
How to Answer: Discuss your approach and system involvement.
Sample Answer: I submit all journal entries with supporting documentation and explanations for approval before posting. The approval hierarchy is typically defined by the company’s internal control policy. In my last job, we used Oracle’s approval workflow, where entries above a certain limit required manager review. I always ensure that documentation is thorough so approvers can verify the validity of each transaction quickly.
34. What Is a Reversing Entry, and When Would You Use It?
How to Answer: Define and give a practical example.
Sample Answer: A reversing entry is made at the beginning of a new accounting period to cancel out an adjusting entry from the prior period. It helps prevent double-counting when actual invoices or payments are recorded later. For example, I often use reversing entries for accrued expenses recorded at month-end, such as utilities, to simplify the next month’s accounting process.
35. Describe How You Would Investigate a GL Account With an Unexpected Balance.
How to Answer: Show analytical and problem-solving skills.
Sample Answer: I start by reviewing the account’s detailed transaction history and comparing it with prior periods. Then I verify supporting documents and cross-check with related accounts to identify potential posting errors or timing differences. If necessary, I coordinate with other departments to trace the source. In one instance, an unexpected balance in the payroll clearing account was traced to an automated posting that had run twice, which I corrected immediately.
36. What Are Some Common Types of Journal Entries in the General Ledger?
How to Answer: Provide examples of typical entries.
Sample Answer: Common types of journal entries include accruals, deferrals, depreciation, reclassifications, and adjustments for errors. Each serves a unique purpose to ensure financial data is recorded accurately. For example, I regularly prepare accrual entries for unpaid expenses at month-end and adjusting entries for revenue recognition. Keeping templates for recurring entries helps ensure accuracy and consistency.
37. How Do You Maintain Confidentiality When Handling Financial Data?
How to Answer: Emphasize professionalism and ethical standards.
Sample Answer: I adhere to company policies and professional ethics to protect sensitive financial information. I only access data necessary for my work and never share details with unauthorized personnel. In my previous position, I ensured files were stored securely with restricted access and followed GDPR and internal data protection protocols. Maintaining confidentiality builds trust and upholds the company’s integrity.
38. Describe How You Work With Other Departments During Month-End Close.
How to Answer: Highlight collaboration and communication.
Sample Answer: I coordinate with accounts payable, accounts receivable, and operations to confirm all transactions are posted before closing. I send cutoff reminders, gather necessary accrual information, and communicate any issues early. In my previous company, I organized a shared closing calendar with key milestones, which improved interdepartmental coordination and reduced the average closing time by two days.
39. What Reports Do You Typically Prepare From the General Ledger?
How to Answer: Mention common reports and their purpose.
Sample Answer: Typical reports include trial balances, balance sheets, income statements, cash flow statements, and account reconciliation summaries. I also prepare variance analysis reports to identify unusual trends or discrepancies. For example, I once developed a monthly expense trend report that helped management identify overspending in certain cost centers and implement corrective actions.
40. How Do You Ensure Timely Completion of Month-End and Year-End Activities?
How to Answer: Focus on organization and time management.
Sample Answer: I maintain a detailed closing checklist with all required tasks and deadlines. I prioritize critical reconciliations early and communicate timelines clearly with other departments. I also leverage automation tools to generate reports quickly. In my previous role, by optimizing our schedule and pre-closing procedures, I helped reduce the closing cycle from eight days to five.
41. What Are Deferred Revenues, and How Are They Recorded?
How to Answer: Define and describe recording.
Sample Answer: Deferred revenue represents payments received for goods or services not yet delivered. Initially, it’s recorded as a liability because the company owes the service or product. As the service is provided, revenue is recognized gradually. For example, I managed deferred revenue schedules for annual software contracts to ensure monthly recognition aligned with delivery timelines.
42. How Do You Reconcile Fixed Assets to the General Ledger?
How to Answer: Describe process and checks.
Sample Answer: I compare balances in the fixed asset sub-ledger to the corresponding GL control accounts. I verify additions, disposals, and depreciation postings for accuracy. Discrepancies are investigated and corrected promptly. For instance, I once found an unposted disposal transaction during reconciliation, which I corrected to ensure accurate asset reporting and compliance.
43. Describe How You Use Excel in General Ledger Accounting.
How to Answer: Highlight Excel skills and examples.
Sample Answer: I use Excel extensively for reconciliations, variance analysis, and financial modeling. I’m proficient with formulas like VLOOKUP, SUMIFS, and pivot tables to analyze large datasets efficiently. In one case, I built an automated reconciliation template that reduced manual reconciliation time by 40%, improving accuracy and consistency in monthly reporting.
44. How Do You Ensure Consistency in Account Coding?
How to Answer: Discuss validation and training methods.
Sample Answer: I follow the company’s chart of accounts structure and use standardized coding for similar transactions. I also train team members on coding rules and conduct periodic reviews to catch inconsistencies. In my last job, implementing a coding reference guide significantly reduced posting errors and improved financial data quality.
45. How Do You Handle System Migration or GL Implementation Projects?
How to Answer: Demonstrate project and technical skills.
Sample Answer: I begin by understanding system requirements, mapping existing accounts to new structures, and validating test data. I participate in user acceptance testing to ensure accuracy and completeness. During a past SAP migration, I helped clean up old accounts and reconcile balances post-implementation, ensuring a smooth transition without audit findings.
46. How Do You Identify and Correct Posting Errors?
How to Answer: Explain detection and correction.
Sample Answer: I detect posting errors through reconciliations, variance analyses, and review of trial balances. Once identified, I trace the transaction back to its source, determine the cause, and prepare a correcting journal entry. I document all corrections for audit purposes. For example, I once discovered duplicate expense postings in a cost center and corrected them to maintain accurate reporting.
47. How Do You Prioritize Tasks During Financial Close?
How to Answer: Focus on time management and prioritization.
Sample Answer: I prioritize tasks by their impact on financial reporting and deadlines. High-risk or high-value accounts are reconciled first. I also delegate routine tasks where possible and maintain a closing calendar to track progress. This structured approach ensures deadlines are met without compromising accuracy or quality.
48. Describe a Time You Found an Accounting Error and How You Resolved It.
How to Answer: Use the STAR method (Situation, Task, Action, Result).
Sample Answer: In a previous role, I discovered a recurring mismatch between the sales revenue and accounts receivable balances. Upon investigation, I found certain credit notes were incorrectly coded. I collaborated with the billing team to correct the postings and implemented a new review step in the process. As a result, our monthly reconciliation time decreased, and audit accuracy improved significantly.
49. How Do You Handle Tight Deadlines in Accounting?
How to Answer: Show stress management and organization.
Sample Answer: I plan ahead by breaking large tasks into manageable parts and using checklists to stay organized. Communication is key, so I keep stakeholders updated on progress. During year-end close, for instance, I worked extra hours and used automation tools to speed up reconciliations while maintaining accuracy. Meeting deadlines without compromising quality is always my top priority.
50. Why Do You Enjoy Working in General Ledger Accounting?
How to Answer: Be authentic and connect your skills to the role.
Sample Answer: I enjoy GL accounting because it combines analytical thinking with attention to detail. I find satisfaction in ensuring financial accuracy and contributing to reliable reporting that supports management decisions. The role challenges me to continuously improve processes and stay updated on accounting standards. Working with numbers and systems while ensuring compliance aligns perfectly with my strengths and professional goals.
Conclusion
Preparing for a General Ledger interview requires both technical knowledge and practical understanding of financial processes. By mastering these 50 questions and answers, you’ll be well-prepared to discuss your accounting expertise confidently. Remember to use real examples, demonstrate accuracy, and emphasize collaboration. With thorough preparation and a positive mindset, you’ll be ready to impress interviewers and take the next step in your accounting career.
