How to study for an accounting test

The hiring phase represents the key to business success because it is a stage where the best workers are recognized and recruited. Especially when we talk about tech, IT, or accounting businesses, the introduction of experienced and trained employees is the cornerstone on which the company's quality itself is established: competent workers are a precious resource. 

It is in this context that accounting tests become effective. The accounting test is a pre-hire assessment that identifies the best figures among thousands of candidates through a system that is stable, safe, and effective in its results. It is different from any other assessment because it gauges on-the-job skills accurately and concretely.

The preparation for an accounting text can be complicated as it involves an in-depth and layered study that puts your skills and flexibility into play. Memorization and understanding of data are crucial to test preparation, but they are not enough. The test assesses both your theoretical and practical abilities, verifying your faculty to efficiently and productively take root in the working context.

How do you prepare for it? What are you supposed to study? Is there a study-method to follow for an accounting test? 

Here is the most effective way to study and prepare for an accounting test.

What is the Accounting test?

An accounting test is a tool that evaluates, through various methodologies, the technical skills alongside the attitude and professional approach of candidates in a specialized field. As the name indicates, this type of test is used mostly in specific business sectors such as accounting, finance, human resources, administrative, commercial, marketing, etc.

In essence, it is a pre-employment test that verifies both theoretical and practical knowledge of the candidate via a format that includes MCQ (Multiple Choice Questions), short-answers questions, mathematical operations, and specific account problems. The difficulty is variable and depends on the role of reference. 

It is based on a principle of practicality rather than on simple theoretical knowledge of the subject.

What do Accounting tests screen? 

An employee's working quality refers to a few fundamental characteristics: competence, motivation, attitude, and flexibility. These traits alone determine whether you are suitable to work for a company or not. 

The accounting test evaluates precisely these factors through a series of questions, mathematical exercises, case studies, and accounting problems. It proves your concrete abilities, the current suitability for the role, and the practical impact you would have on the workplace.

Such tests can be clubbed with other skill assessment such as an excel test to assess applicants on varying skills.

Here are the essential skills that this test can detect:

• Understanding the basics of general and analytical accounting from first notes, income statements to financial reports and cash flow statements
• Legal and Tax knowledge of the management of digital documents, including electronic invoicing.
• Problem-solving and short-/long- term planning skills.
• Knowledge of techniques and methods for developing transversal skills such as the organization of work, effective communication, teamwork, and conflict management.

How do you prepare for it?

To take an accounting test, it is necessary to have theoretical knowledge, practical skills, and experience in the accounting and finance sectors. Accounting tests are expected to check your cultural, technical, and behavioral skills and abilities. 

• Organization 

Preparation for a test is always problematic for many reasons: how to manage the time, the material to cover, how deep is your understanding of the subject, etc. Even though it may feel overwhelming, the day-work organization must be the core of your study. 

An accounting study implies constant involvement. Focus your study on accounting's central concepts, understand the mechanisms and reasons underlying it, and do practical exercises to check your understanding. Everything should start from the meticulous planning of your work to manage the different aspects of the preparation adequately. 

It is not a question of how long you spend studying, but how you manage your time to maximize the outcomes.

• Focus on understanding, not memorization.

Why is theoretical understanding so crucial for accounting test preparation? 

Accounting is based on abstract and logical principles, and insight into the reasons and the processes is the key to understanding this subject. The comprehension of basic concepts is the groundwork upon which everything else is built. The theoretical principles of accounting are firmly linked, and the study of this subject entails gradual and sedimentary learning. The theories, principles, and concepts are deeply connected. The study must settle certain concepts to build new ones on them. It is a real progression of learning. That is why comprehending the basics is vital. 

Knowing the 'whys' and 'hows' is the indispensable element to face a test of this type. Accounting is a technical subject with its principles and concepts; once you realize the fundamental rules, you understand its functioning and internal logic. Even though the accounting tests differ in the level of difficulty depending on the job role, textbooks offer an important, if not a fundamental, help in learning the subject. 

• Communication

The ability to convey your thoughts is vital in any work environment. The accounting test verifies your ability to translate your thoughts into solutions. An employee with excellent communication skills integrates well into the working environment and represents an unrivaled resource.

Communication is a practical skill that you must master to succeed in an accounting test.

• Practical application of principles

Where employees focus only on theory, it can do more harm than good. The worker's efficiency and productivity are primarily measured by the concrete contribution he/she brings to the company. That is why the practical application of the theory is crucial. 

The accounting test implies a high level of commitment into its preparation, and theoretical study is not sufficient.  The grasp of accounting notions is just the initial part of your study: you must understand how they work and apply them practically. The best way to learn how to do accounting is by practicing accounting problems. 

In accounting, the application of theoretical knowledge is the decisive step in your study. Through practice, you gain familiarity with the method, the approach, and the organization and become more efficient in dealing with accounting tests. The importance of training resides in identifying your weaker points and working on them; simultaneously, it makes you much more confident. 

• Commitment is the key

Procrastination never works. The material covered in accounting tests builds upon itself, and its comprehension is progressive and gradual. Commitment must be the basis of your preparation. Understanding accounting is mainly based on getting involved; that is why accounting tests are used to check suitability in the workplace. Every business hires someone who has the right motivations, and accounting tests create a real insight into individuals, evaluating technical and soft skills. 

Commitment implies a total dedication to preparation, addressing questions in case of lack of understanding, studying theoretical principles, doing constant practice, and familiarizing yourself with the tools and the method. 

Questions include real-world examples and cases to measure a candidate's abilities. Commitment is the measure of your attitude; it will lead you to succeed in the accounting test to indicate your level of engagement as a worker for the organization over the long term. 

Wrapping up

The preparation for an accounting test follows different paths. However, there is a general guideline that everyone should follow to succeed in such a test. Studying accounting is different from studying any other subject, as its comprehension is both theoretical and practical. Everything starts with planning: the study-method is variable, but the workload is crucial for everybody.

Author Bio:

Shenuka Rahul Manamperige is a communications intern at Adaface, which provides conversational assessments for companies to find great talent.