Suspense Account
A Suspense Account is a temporary holding place in accounting where bookkeepers and accountants put money that needs to be sorted out later. Think of it like a 'waiting room' for money when you're not sure where it belongs yet. For example, if a payment comes in but you don't know who sent it or what it's for, it goes into the Suspense Account until you can figure out the right place for it. This is a common tool used in bookkeeping to keep things organized while investigating unclear transactions. Good bookkeepers are expected to regularly review and clear these accounts, making sure all money eventually gets put in its proper place.
Examples in Resumes
Managed and cleared Suspense Account entries within 48 hours of creation
Reduced Suspense Account balances by 90% through improved transaction tracking
Implemented new procedures for handling Suspense Account items to ensure faster resolution
Typical job title: "Bookkeepers"
Also try searching for:
Where to Find Bookkeepers
Professional Organizations
Online Communities
Example Interview Questions
Senior Level Questions
Q: How would you set up a system to minimize the use of suspense accounts?
Expected Answer: A senior bookkeeper should explain creating clear procedures for payment processing, implementing strong documentation requirements, and establishing regular review processes to identify and resolve unclear transactions quickly.
Q: How do you handle a suspense account that hasn't been cleared for several months?
Expected Answer: Should discuss systematic investigation approaches, including reviewing historical records, contacting relevant parties, and implementing corrective measures to prevent similar issues in the future.
Mid Level Questions
Q: What is your process for clearing items from a suspense account?
Expected Answer: Should explain steps like investigating the transaction origin, matching with supporting documents, communicating with other departments, and proper recording in the correct accounts.
Q: How often should suspense accounts be reviewed and reconciled?
Expected Answer: Should discuss regular monitoring schedules (daily/weekly), the importance of timely clearing, and examples of reconciliation procedures.
Junior Level Questions
Q: What is a suspense account and when would you use it?
Expected Answer: Should explain that it's a temporary account for unclear transactions and give basic examples of when to use it, like unidentified deposits or payments.
Q: What information do you need to clear an item from a suspense account?
Expected Answer: Should mention basic requirements like transaction date, amount, sender/recipient information, and supporting documentation.
Experience Level Indicators
Junior (0-2 years)
- Basic bookkeeping principles
- Data entry accuracy
- Understanding of suspense accounts
- Basic reconciliation skills
Mid (2-5 years)
- Efficient clearing of suspense items
- Account reconciliation
- Problem-solving skills
- Communication with other departments
Senior (5+ years)
- Process improvement
- Team training and supervision
- Complex problem resolution
- Internal control implementation
Red Flags to Watch For
- Unable to explain basic bookkeeping principles
- Poor attention to detail in transaction recording
- Lack of problem-solving skills for unclear transactions
- No experience with accounting software
Related Terms
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