10+ Deputy Manager - Finance Interview Questions and Answers

When launching a new product, finance considerations include budgeting, pricing, forecasting, and ROI analysis.

• Budgeting for production costs, marketing expenses, and potential risks

• Pricing strategy based on market research and competition analysis

• Forecasting sales and revenue projections

• ROI analysis to determine profitability and return on investment

• Assessing financing options and potential funding sources

When opening a new store, I consider various factors such as location, target market, competition, and budget.

• Location - Is it easily accessible? Is it in a high-traffic area?

• Target market - Who are the potential customers? What are their needs and preferences?

• Competition - Who are the competitors in the area? What are their strengths and weaknesses?

• Budget - How much can we afford to invest in the new store?

• Marketing strategy - How will we promote the new store to attract cus...read more

I am familiar with SAP FICO end user functions and T-Codes for accounts payable and bank reconciliation statement.

• I have experience in using T-Codes such as FBL1N for vendor line items and F110 for payment runs in accounts payable.

• For bank reconciliation statement, I have used T-Code FF67 for manual bank statement and FF.5 for automatic bank statement.

• I am also familiar with the process of clearing open items in both accounts payable and bank reconciliation statement.

• In addit...read more

Topline refers to a company's revenue while bottom line refers to its net income.

• Topline growth is an increase in revenue generated by a company's products or services.

• Bottom line growth is an increase in net income after all expenses have been deducted.

• Topline growth can be achieved by increasing sales volume or raising prices.

• Bottom line growth can be achieved by reducing expenses or increasing revenue.

• Both are important for a company's financial health and success.

Accounting is the process of recording, summarizing, analyzing, and reporting financial transactions of a business.

• Accounting involves the systematic recording of financial transactions.

• It includes summarizing and analyzing the recorded data to prepare financial statements.

• Accounting helps in measuring the financial performance and position of a business.

• It provides information for decision-making, budgeting, and forecasting.

• Examples of accounting activities include bookkeepi...read more

Cash flows from financing activities involve transactions that affect a company's equity and debt.

• Includes cash received from issuing shares or borrowing funds.

• Cash paid for dividends to shareholders.

• Repayment of long-term debt or loans.

• Issuance of bonds or debentures.

• Purchase of treasury stock.

Managing a balance sheet involves monitoring assets, liabilities, and equity to ensure financial health and compliance.

• Regularly review and update the balance sheet to reflect current financial status.

• Ensure accurate classification of assets and liabilities, e.g., current vs. non-current.

• Perform reconciliations to verify account balances, such as bank reconciliations.

• Analyze trends in assets and liabilities to identify potential financial issues.

• Use financial ratios, like the...read more

A bucket system in collections categorizes receivables based on aging to prioritize collection efforts.

• Buckets typically represent time intervals, such as 0-30 days, 31-60 days, etc.

• For example, a company may categorize overdue invoices into three buckets: 0-30 days, 31-60 days, and 61+ days.

• This system helps prioritize collections, focusing on older debts first.

• It allows for better tracking of receivables and improves cash flow management.

• Using a bucket system can enhance co...read more

Net worth of a company is calculated as total assets minus total liabilities, reflecting its financial health.

• Identify total assets: Sum all assets like cash, inventory, property, and equipment.

• Identify total liabilities: Sum all debts and obligations, including loans and accounts payable.

• Calculate net worth: Subtract total liabilities from total assets (Net Worth = Total Assets - Total Liabilities).

• Example: If a company has $1 million in assets and $600,000 in liabilities, i...read more

A Collection Manager oversees the collection of payments, ensuring timely and efficient recovery of outstanding debts.

• Develops collection strategies to optimize recovery rates.

• Monitors accounts receivable and identifies overdue accounts.

• Communicates with clients to negotiate payment plans, e.g., setting up installment payments.

• Analyzes collection data to identify trends and improve processes.

• Collaborates with sales and customer service teams to resolve disputes.

Deferred tax refers to the future tax consequences of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their tax bases.

• Deferred tax is a balance sheet item that represents the future tax liability or asset that arises due to temporary differences.

• Temporary differences can occur when there is a difference between the carrying amount of an asset or liability for financial reporting purposes and its tax basis.

• Defer...read more

The profile handle was not managed earlier.

• No, I have not handled this profile before

• I am new to this specific role

• I am eager to learn and adapt quickly

ERP software is typically integrated with various modules such as finance, HR, supply chain, etc.

• ERP software is commonly integrated with finance modules for managing financial transactions, reporting, and analysis

• It can also be integrated with HR modules for managing payroll, employee data, and benefits

• Supply chain modules help in managing inventory, procurement, and logistics

• Examples of ERP software include SAP, Oracle ERP, Microsoft Dynamics, and NetSuite

DPD stands for Days Past Due, indicating the number of days an account is overdue on payments.

• DPD is a key metric in credit management and collections.

• A DPD of 30 means the payment is 30 days overdue.

• Higher DPD can indicate increased risk of default.

• For example, a DPD of 60 may prompt a company to take collection actions.

NPA stands for Non-Performing Asset, indicating loans that are in default or close to being in default.

• An NPA occurs when a borrower fails to make interest or principal payments for 90 days.

• Banks classify NPAs into three categories: Substandard, Doubtful, and Loss.

• For example, if a business loan of $100,000 is not repaid for 90 days, it becomes an NPA.

• High levels of NPAs can indicate poor asset quality and risk for banks, affecting their profitability.

• Regulatory bodies monito...read more

GST filings are mandatory for businesses in India, with different rates for different goods and services.

• GST filings are required for businesses with an annual turnover above a certain threshold.

• There are different GST rates for different categories of goods and services, such as 5%, 12%, 18%, and 28%.

• Businesses need to file GST returns on a monthly, quarterly, or annual basis, depending on their turnover.

• GST rates can vary based on the type of goods or services being provide...read more