"Tell Us What You Think of Our Accounts": Critiquing a Company's Financials in Interview
“You have seen our annual report. What do you think of our accounts?”
It is a favourite question in CFO and Finance Director interviews. Sometimes it is asked casually. Sometimes it is a formal task, with a set of accounts handed over a day or two before the interview.
It is a test of several things at once. Technical skill, commercial judgement, preparation and tact. Too soft and you look like you have nothing to add. Too harsh and you criticise the people who prepared the accounts, who may be sitting in front of you.
This article covers why panels ask, how to prepare, what to look for, how to frame issues and the mistakes to avoid.
Why panels ask you to review their numbers
Panels use this question to see:
Whether you prepare properly
Whether you can read a business through its numbers
Whether you spot what matters, not just what is interesting
Whether you can raise concerns tactfully
How you would add value in your first months
It is a short window into how you would work as their CFO.
How to prepare from public or shared information
For listed companies: Read the last two annual reports and half-year reports, results presentations, market announcements and any analyst commentary you can find.
For private companies: Ask the recruiter whether financial information will be shared. Many businesses share a summary under a confidentiality agreement. If nothing is available, use what you can find, such as company filings and news, and be clear about the limits.
For not-for-profits and public bodies: Annual reports and financial statements are often public.
Allow several hours. Make notes. Pick out three or four themes.
What to look for: cash, debt, margins, notes
Cash. How does operating cash flow compare with profit? Is working capital growing faster than revenue? Is the business funding itself or relying on debt?
Debt and funding. How much debt is there? When does it mature? How much headroom is there against covenants, if disclosed?
Margins. Are gross and operating margins rising or falling? What explains the change?
Revenue quality. Is growth organic or from acquisitions? Are there signs of customer concentration?
Costs. Which costs are growing fastest? Are there one-off items?
Balance sheet. Goodwill, intangibles, provisions, leases and large or unusual balances.
Notes. Significant judgements, contingent liabilities, related parties, subsequent events and auditor’s report.
You do not need to cover everything. Focus on what matters most to the business and the role.
Framing issues as questions, not attacks
This is the key skill. Present your observations as questions or areas you would explore, not as criticisms.
Too harsh: “Your working capital management is poor. Debtor days have blown out.”
Better: “I noticed debtor days have risen from 42 to 58 over two years. I would want to understand what is driving that, whether it is customer mix, terms or collections, because it is tying up around $8 million of cash.”
The second version shows insight, puts a number on it and opens a conversation.
Example answer structure
Use a simple structure:
A positive observation. Something the business is doing well.
Two or three key themes. With numbers and questions.
What you would focus on first. Linked to the role.
Example:
"The business has grown revenue by around 30% in three years, with solid margins, which is a strong result.
Three things stood out to me. First, operating cash flow has lagged profit, mainly because of rising stock and debtors. Second, about 40% of the debt matures in the next 18 months, so refinancing will be an early priority. Third, the goodwill from the two acquisitions is significant, so I would want to understand how they are performing against the original cases.
If I joined, my first focus would be working capital and the refinancing, because together they shape the business’s flexibility for the next stage of growth."
Linking it to your first 90 days
Panels often follow up with “What would you do first?” Link your observations to a short first 90 days plan. See the first 90 days plan in an executive interview.
When the accounts have real problems
Sometimes the accounts show genuine issues: losses, falling cash, a qualified audit opinion or a covenant problem. Do not avoid them. Raise them calmly and constructively. The panel already knows. They want to see how you would handle it.
“The going concern note and the covenant waiver suggest the next 12 months are critical. I would want to see the latest cash forecast and lender position early.”
Mistakes
Not preparing at all, or only skimming
Listing every observation without priority
Criticising the current finance team
Getting lost in technical detail
Making confident claims without enough information
Forgetting to mention anything positive
When it is a formal task
If you are given accounts in advance and asked to present, treat it like a board paper. Short, clear, three or four key points, with a recommendation. Practise it. Time it. See executive case presentation interviews.
How search consultants see this question
When I was in executive search, I often warned CFO candidates that this question was coming. Those who prepared well, picked out two or three sharp themes and framed them as questions usually impressed the client. Those who either had nothing to say or lectured the panel rarely progressed.
Questions to ask after your answer
Turn the conversation into a dialogue. “Did I read that right?” or “What is the board’s view on the working capital trend?” invites the panel to share more and shows you want to understand, not just judge.
Your LinkedIn and resume
If you have done this kind of analysis in your current role, such as reviewing acquisition targets or turning around struggling businesses, make sure your resume shows it. It supports your answer.
A quick self-check
Before the interview, could you explain the business’s financial position to a non-finance friend in two minutes? If yes, you are ready.
Comparing with peers
If you can, compare the business with two or three competitors or similar companies. Margins, cash conversion, debt levels and growth. A short comparison shows commercial thinking and gives your observations context.
“Compared with the two listed peers, gross margin is similar but operating costs are about 3 points higher as a share of revenue. I would want to understand whether that reflects investment for growth or a cost issue.”
Be careful not to overstate conclusions from public data. Frame comparisons as questions.
When the CEO prepared the numbers
In smaller businesses, the CEO or an owner may have been closely involved in the accounts. Be especially tactful. Focus on opportunities, not faults. “There is a chance to release cash from stock” lands better than “stock is too high.”
Keeping it short
If the question is asked casually, keep your answer to about two minutes. Offer more detail if they want it. Long answers lose the room.
Practising with a partner
Ask a former colleague or mentor to play the panel. Give your answer and ask them to push back. It helps you stay calm when the real panel challenges your view.
Your next step
Pick a listed company in your sector. Spend an hour on its annual report and write three observations framed as questions. It is good practice for your next CFO interview.
If you want help preparing for CFO interviews, my executive interview preparation helps senior finance leaders prepare strong, specific answers.
If you have a CFO interview coming up, book a complimentary Clarity Session.
