Recommended tests for assessing accounting skills
There are several tests that can be used to check for skills, aptitudes, and abilities that are needed for success in the accounting industry, and the following is a good selection that focuses on key competencies:
Error checking test
An eye for detail is very important in accounting, especially when it comes to dealing with large amounts of numerical data in spreadsheets and accounting software. The misplacement of a decimal point can have huge ramifications on a business, so those working in the accounting space need to be able to demonstrate that they can spot errors and deal with them before they become a problem.
In the error checking test, candidates are provided with two seemingly identical datasets. These might include accounting figures and monetary amounts, or they might be combinations of things like names, addresses, and telephone numbers. The candidate needs to spot the differences (or errors) between the two sets of data.
This is a simple exercise for most people, but under the pressure of the time limit and exam conditions those who are not attentive will find it difficult - which makes it a good way to select candidates who do have a good eye for detail and can spot errors even when under pressure.
Numerical reasoning test
A good level of numeracy is expected in the accounting industry, but the ability to use numerical data to make decisions is a factor that not everyone can demonstrate. Numerical reasoning is not about mathematical ability, but about understanding new data and using it to make logical deductions, and using the right operations to manipulate that data correctly.
In the numerical reasoning test, candidates are given questions about numerical data in the form of tables, charts, or graphs. To answer the question about the data provided, they usually need to complete a simple operation (such as adding, multiplying, subtracting or dividing), and they need to demonstrate that they are comfortable with things like percentages, ratios, and fractions.
Recruiters will be able to use the results to choose the candidates who are most comfortable using numerical data effectively.
Microsoft Excel test
Although there are several different types of accounting software available, the humble spreadsheet is still an important piece of office software in the industry - and the skills needed to use Microsoft Excel to a good standard often represent the ability to learn new software.
In the Microsoft Excel test, the candidate is asked to complete different tasks that use different functions of the software, to show that they are competent in creating different types of data representations. This can include things like creating basic tables, using formulas, and extrapolating information, as well as applying filters and creating graphic representations.
Recruiters can use this information to decide which candidates are confident enough in Excel to apply that knowledge to other programs, but also to gauge their level of confidence in using other Office products.
Abstract reasoning test
A good indicator of general intelligence and aptitude is the ability to use logic to make decisions, and that includes reaching reasoned decisions using unfamiliar information. In accounting in particular, new datasets and information can change the results of many processes, and candidates need to be able to show that they can spot patterns and make predictions based on only the information that they have at hand.
In the abstract reasoning test, the candidate is shown a series of shapes or images that are in a sequence. There will be a missing item in the sequence, and they will need to find it from the multiple-choice options presented. To find the answer, the candidate needs to quickly identify the pattern or rule that governs the sequence and apply it.
Logical reasoning test
In the accounting industry, employees need to be sharp and responsive to problems that are presented, and ready to solve them using logical reasoning skills. A good way to assess these skills is to give problems that are non-verbal and need no previous knowledge - they are based on pattern recognition and analytical thinking.
In the logical reasoning test, candidates need to find the pattern that governs a sequence of shapes or images. This might be as simple as a rotation, or it may include several different steps - but to find the missing item from the multiple-choice options provided, the candidate needs to apply that pattern or rule.
As these tests are designed to assess problem-solving, logic, and analysis skills, they are a great way to evaluate candidates who want to work in the accounting industry.