What Do Finance Interns Do? Key Responsibilities Explained

Finance internships provide hands-on experience for students and recent graduates entering the financial industry. These roles help interns develop technical skills, gain exposure to real-world financial operations, and build a foundation for careers in accounting, investment banking, and corporate finance.

Interns assist financial teams by handling data, preparing reports, and supporting budgeting and compliance efforts. While responsibilities vary by company, common tasks include organizing records, preparing statements, ensuring compliance, and attending meetings.

Collecting and Sorting Accounting Records

Interns help manage financial data by gathering and organizing invoices, receipts, and transaction logs. They ensure all financial documents are properly categorized and aligned with internal tracking systems and external statements, such as bank records or vendor invoices.

Beyond data entry, interns reconcile discrepancies. If an expense report does not match a bank transaction, they investigate missing documentation or flag inconsistencies for senior accountants. Attention to detail is key, as small errors can lead to financial misstatements or compliance issues. Companies often use accounting software like QuickBooks, SAP, or Oracle, and interns are trained to navigate these platforms efficiently.

Maintaining an organized record-keeping system is another responsibility. Businesses must retain financial documents for specific periods, often dictated by tax laws or industry regulations. For instance, the IRS requires companies to keep tax records for at least three years, while some financial documents must be stored longer for audit purposes. Interns may help digitize paper records to ensure files are accessible for audits or financial reviews.

Helping With Financial Statement Preparation

Interns assist in compiling financial statements that reflect a company’s financial health. These reports must follow accounting standards such as Generally Accepted Accounting Principles (GAAP) in the U.S. or International Financial Reporting Standards (IFRS) in many other countries. Interns gain experience in financial reporting and learn how businesses track profitability, assets, liabilities, and cash flow.

Income Statements

The income statement, or profit and loss (P&L) statement, summarizes a company’s revenues, expenses, and net income over a specific period. Interns gather revenue data, verify expense entries, and ensure figures align with supporting documentation. They may also calculate key financial metrics such as gross profit margin (gross profit ÷ revenue) and operating margin (operating income ÷ revenue) to assess profitability.

Interns review expense classifications to ensure compliance with GAAP or IFRS. For example, under GAAP, research and development (R&D) costs are expensed as incurred, whereas IFRS allows some development costs to be capitalized if they meet specific criteria. They may also prepare variance analyses, comparing actual financial results to budgeted figures and identifying discrepancies that require further investigation.

Balance Sheets

The balance sheet provides a snapshot of a company’s financial position, detailing assets, liabilities, and shareholders’ equity. Interns reconcile account balances, ensuring reported figures match supporting records such as bank statements, loan agreements, or inventory reports. They also verify asset classification, distinguishing between current assets (cash, accounts receivable, inventory) and non-current assets (property, equipment, intangible assets).

Interns work with financial ratios derived from the balance sheet, such as the current ratio (current assets ÷ current liabilities) and debt-to-equity ratio (total liabilities ÷ shareholders’ equity), which assess liquidity and financial stability. They also review depreciation schedules to ensure compliance with accounting standards. Under GAAP, companies typically use the straight-line method for depreciating fixed assets, while tax regulations may allow accelerated depreciation methods like MACRS (Modified Accelerated Cost Recovery System) for tax reporting.

Cash Flow Summaries

The cash flow statement tracks cash inflows and outflows across operating, investing, and financing activities. Interns help categorize transactions into the appropriate section, ensuring cash movements are accurately recorded. For example, cash received from customers belongs in operating activities, while proceeds from issuing stock fall under financing activities.

Interns reconcile net income and operating cash flow using the indirect method, adjusting net income for non-cash expenses (depreciation, amortization) and changes in working capital (accounts receivable, inventory, accounts payable). Understanding these adjustments is essential for analyzing a company’s liquidity.

They may also assess free cash flow (operating cash flow – capital expenditures), a key metric for evaluating a company’s ability to fund operations and growth without relying on external financing. By working on cash flow statements, interns gain insight into how businesses manage liquidity and ensure they have sufficient funds to meet obligations.

Supporting Budgeting Activities

Interns contribute to the budgeting process by collecting data, analyzing trends, and assisting in forecast preparation. Companies use budgeting to allocate resources efficiently and plan for future expenses. Interns review past budgets and actual spending patterns to identify discrepancies or unexpected cost overruns.

Once data is gathered, they assist in building budget models that estimate future revenues and expenses. This involves working with spreadsheets and financial software to input projected costs, expected income, and potential financial risks. For example, a retail company may adjust its budget based on seasonal sales fluctuations, while a manufacturing firm might factor in raw material price changes. Interns may also help analyze cost-saving opportunities, such as negotiating vendor contracts or identifying areas where expenses can be reduced without impacting operations.

Interns contribute to scenario analysis, evaluating different financial outcomes based on varying assumptions. For example, they might assess how a 5% increase in labor costs would impact profitability or how a decline in sales could affect cash reserves. This helps businesses prepare for uncertainties and make informed financial decisions. They may also assist in preparing presentations or reports summarizing budget recommendations for management.

Observing Compliance Protocols

Finance interns help ensure companies follow financial regulations, tax laws, and internal policies to minimize legal and financial risks. One key area involves monitoring adherence to the Sarbanes-Oxley Act (SOX) for publicly traded companies, which mandates strict internal controls and financial reporting standards to prevent fraud. Interns support compliance teams by reviewing internal audit reports, verifying that financial transactions meet regulatory requirements, and documenting control procedures.

Tax compliance is another area where interns contribute by assisting in tax filings to meet federal, state, and local requirements. Businesses must comply with IRS regulations, such as ensuring accurate payroll tax withholdings (Social Security and Medicare taxes under FICA) and adhering to corporate tax obligations, including estimated quarterly tax payments. Interns may analyze tax records to confirm that deductions and credits, such as Section 179 expensing for asset purchases, are properly applied to maximize tax efficiency while staying within legal limits.

Participating in Department Meetings

Interns are often invited to department meetings, where they gain exposure to financial discussions and decision-making processes. These meetings allow them to observe how financial professionals analyze data, address challenges, and strategize for future growth. Topics may include financial performance reviews, investment opportunities, cost-cutting measures, or regulatory updates. Interns may take notes, summarize key points, or conduct follow-up research on specific issues raised during the meeting.

Beyond observation, interns may present findings from their assigned tasks, such as budget variance reports or financial trend analyses. This helps them develop communication skills and gain confidence in articulating financial concepts. In some cases, they assist in preparing visual aids like charts, graphs, or PowerPoint presentations to support discussions. By engaging in these meetings, interns gain insight into how financial decisions are made and how different departments collaborate to achieve business objectives.