Wood Group Billing Accountant Interview Questions, Process, and Tips

Unbilled data or accrual data refers to revenue that has been earned but not yet billed to the customer.

• Unbilled data is a common term used in accounting to describe revenue that has been recognized but not yet invoiced.

• Accrual data refers to expenses that have been incurred but not yet recorded in the accounting system.

• Clearing unbilled data is important to ensure accurate financial reporting and to prevent revenue le...read more

Cash forecast is a projection of future cash inflows and outflows. Golden rules of accounting are basic principles to maintain accurate financial records.

• Cash forecast helps in managing cash flow and planning for future expenses.

• Golden rules of accounting are: debit the receiver, credit the giver; debit what comes in, credit what goes out; and debit expenses and losses, credit income and gains.

• These rules ensure accura...read more

A credit note is a document issued by a seller to a buyer, indicating that a certain amount has been credited back to the buyer's account.

• Credit notes are used to correct errors in invoices.

• They are also used to adjust the amount owed by a customer.

• Credit notes can be issued for returned goods or cancelled services.

• They can also be used to give a discount or refund to a customer.

• Credit notes are important for maintaini

Payment term is the time period within which a customer is required to pay for goods or services. Credit period is the time period for which a customer is allowed to delay payment.

• Payment term is agreed upon by the seller and buyer during a transaction.

• It can be expressed in days, weeks, or months.

• For example, a payment term of 30 days means the customer must pay within 30 days of receiving the invoice.

• Credit period is...read more

The AR Register/Invoice Register is a detailed list of all accounts receivable or invoices issued by a company.

• It includes information such as invoice number, date, amount, customer name, and payment status.

• It helps track outstanding payments and monitor the overall financial health of the company.

• AR Register is used by billing accountants to reconcile payments and ensure accuracy in financial records.

Accrual data refers to revenue or expenses that have been earned or incurred, but have not yet been received or paid.

• Accrual data is used to match revenue and expenses to the time period in which they were incurred, rather than when they are actually received or paid.

• It helps in providing a more accurate representation of a company's financial position and performance.

• Examples of accrual data include accounts receivabl

EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a measure of a company's operating performance.

• EBITDA is calculated by adding back interest, taxes, depreciation, and amortization to net income.

• It is used to analyze and compare profitability between companies and industries.

• EBITDA helps in assessing a company's ability to generate cash flow from its operations.

• Investors often use...read more

Revenue is the total income generated by a business through its normal business operations, while profit is the amount of money left over after all expenses have been deducted from revenue.

• Revenue is the total amount of money a company receives from its customers for providing goods or services.

• Profit is the amount of money a company has left over after subtracting all expenses, including operating costs, taxes, and in...read more

Unbilled refers to services or products that have been provided but not yet invoiced to the customer.

• Unbilled items should be reviewed regularly to ensure timely invoicing.

• It is important to investigate the reasons for items being unbilled, such as missing documentation or approval.

• Unbilled amounts should be tracked separately from billed amounts to avoid revenue recognition issues.

• Examples of unbilled items include co...read more

Journal entries are accounting records that show the financial transactions of a business.

• Journal entries are used to record transactions in the general ledger.

• They include the date of the transaction, accounts affected, and amounts debited or credited.

• Each journal entry consists of a debit entry and a credit entry, following the double-entry accounting system.

• Examples of journal entries include recording sales revenue

Credit and Debit Memos/Notes are documents used to adjust accounts receivable or payable balances.

• Credit Memos/Notes are used to decrease accounts receivable or increase accounts payable.

• Debit Memos/Notes are used to increase accounts receivable or decrease accounts payable.

• They are typically issued to correct errors, apply discounts, or resolve disputes.

• Examples include issuing a credit memo for a returned product or

Billing types refer to different categories or methods used for billing customers for products or services.

• Billing types can include hourly billing, flat-rate billing, milestone billing, etc.

• Each billing type has its own set of rules and criteria for invoicing.

• For example, a software development project may use milestone billing where payments are made upon completion of specific project milestones.

Sales on credit refer to goods or services sold to customers with an agreement to pay at a later date.

• Sales on credit involve extending credit to customers, allowing them to purchase goods or services without immediate payment.

• The terms of the credit agreement, such as payment due date and interest rates, are typically outlined in a sales invoice or contract.

• Accounts receivable increases when sales are made on credit, ...read more

DSO stands for Days Sales Outstanding, a financial metric used to measure the average number of days it takes a company to collect revenue after a sale.

• DSO is calculated by dividing accounts receivable by total credit sales and multiplying by the number of days in the period.

• A lower DSO indicates that a company is collecting payments more quickly, while a higher DSO may suggest potential issues with collections.

• For exa...read more

Revenue is the total income generated by a business through its normal business operations, while profit is the amount of money left over after all expenses have been deducted from revenue.

• Revenue is the total amount of money earned by a company from its sales of goods or services.

• Profit is the amount of money that remains after all expenses, such as operating costs, taxes, and interest, have been subtracted from reven...read more

A cash forecast is a financial tool used to predict the future cash inflows and outflows of a business.

• A cash forecast helps businesses plan for upcoming expenses and ensure they have enough cash on hand to cover them.

• It involves analyzing historical cash flow data, current financial statements, and future business plans to estimate cash flow.

• Cash forecasts are typically created on a monthly or quarterly basis and can ...read more

Deferred revenue is income received in advance for goods or services that have not yet been provided, while accrual revenue is income earned but not yet received.

• Deferred revenue is recorded as a liability until the goods or services are delivered.

• Accrual revenue is recorded as an asset until the payment is received.

• Examples of deferred revenue include magazine subscriptions or annual maintenance contracts.

• Examples of ...read more

Milestone and RFP Billing are methods used in project-based billing to track progress and bill clients accordingly.

• Milestone Billing involves billing clients based on project milestones achieved

• RFP (Request for Proposal) Billing involves billing clients based on the terms outlined in the proposal submitted for the project

• Both methods help ensure accurate billing and payment for services rendered