An accounts payable specialist is responsible for processing and paying a company’s bills and invoices. This financial role is critical for managing cash flow and maintaining positive vendor relationships. Read on to learn more about the key duties and responsibilities of an accounts payable specialist.
Overview of Accounts Payable
Accounts payable (AP) is the payment process businesses use to pay off short-term liabilities or expenses. It involves receiving invoices, verifying information, recording transactions, making payments, and managing vendor relationships.
The accounts payable department is responsible for:
- Receiving and recording invoices
- Verifying correct billing amounts and terms
- Coding invoices with the correct general ledger account numbers
- Obtaining management approval for invoice payments
- Taking advantage of early payment discounts
- Scheduling payments to vendors
- Recording accounts payable transactions in the general ledger
- Filing records and documents
By ensuring prompt and accurate invoice payment, the accounts payable team maintains positive vendor relationships. This enhances the company’s ability to negotiate favorable credit terms and pricing.
Key Responsibilities
Accounts payable specialists have a range of important duties and responsibilities. Here is an overview of the typical daily tasks for an AP specialist:
Processing Invoices
One of the core duties of an accounts payable clerk is to process incoming invoices. This involves:
- Receiving invoices from vendors via mail, email, EDI, or other methods
- Reviewing invoices for accuracy and completion
- Obtaining any missing documentation needed to support invoices
- Entering invoices into the accounting system
- Coding invoices to the appropriate general ledger accounts
Verifying and Approving Invoices
Accounts payable staff must verify invoice accuracy prior to payment. This involves:
- Confirming receipt of goods or services
- Matching invoices to purchase orders
- Comparing invoice line items and amounts to source documents
- Identifying duplicate invoices
- Obtaining management approval on invoices over authorized limits
Proper invoice verification helps prevent overpayments and fraud.
Managing Vendor Relationships
Accounts payable specialists serve as a key company liaison with vendors. Responsibilities include:
- Responding to vendor inquiries about invoice or payment status
- Researching and resolving any invoice discrepancies
- Documenting issues and generating exception reports
- Communicating policy changes that impact vendors
- Acting as the point of contact for vendor inquiries and disputes
By providing excellent vendor service, AP staff help strengthen external business relationships.
Processing Payments
Generating on-time payments is one of the most visible roles of the AP department. Common payment tasks include:
- Preparing checks or electronic payments
- Obtaining authorized signatures on checks
- Mailing checks to vendors
- Submitting electronic payments via ACH or wire transfers
- Taking advantage of early payment discounts
- Ensuring payments align with payment terms
- voiding checks that are lost or damaged
Well-managed payment processes enhance vendor satisfaction and support prompt payment discounts.
Recording Transactions
Recording accounts payable transactions accurately is vital. Key activities include:
- Posting accounts payable entries to the general ledger
- Maintaining separate sub-ledgers for each vendor
- Tracking expenses by department or account code
- Reconciling accounts payable sub-ledgers to control accounts
- Researching and resolving discrepancies
Proper transaction recording ensures expenses hit the right accounts in a timely manner.
Reporting
Accounts payable staff generate a variety of reports for management analysis, including:
- Aged payables reports detailing outstanding invoices
- Vendor statements reconciling invoices to payments
- Cash requirements reports projecting upcoming payment amounts
- Expense distribution reports by GL code
- Reports on discounts earned and available
Reporting provides visibility into payables, expenses, and vendor interactions.
Required Skills and Qualifications
To be successful as an accounts payable specialist, certain skills and qualifications are required:
- Attention to detail – Since AP roles require accuracy in processing high volumes of data, strong attention to detail is critical.
- Numeric aptitude – The ability to work quickly and accurately with numerical data is vital.
- Analytical skills – Accounts payable staff need analytical capabilities to research and resolve invoice discrepancies.
- Organization – Juggling high volumes of invoices and vendors takes thorough organizational abilities.
- Communication skills – Accounts payable specialists need to be adept communicators to collaborate with vendors and internal staff.
- Accounting knowledge – An understanding of basic bookkeeping and accounting principles is helpful.
- Technology skills – AP specialists should be competent with accounting software, spreadsheet programs, and other relevant technology.
Most accounts payable roles require some prior experience in an accounts payable position or similar accounting clerk role. Educational requirements vary by employer, but many require an associate’s or bachelor’s degree in accounting, finance, or business administration.
Accounts Payable Certifications
There are some professional certifications that can help demonstrate an accounts payable specialist’s expertise. Common designations include:
- Certified Accounts Payable Professional (CAPP) offered by the Institute of Finance and Management
- Certified Accounts Payable Associate (CAPA) from the American Accounts Payable Association
- Certified Payables Specialist (CPS) from the American Payroll Association
While certifications are not required for most accounts payable roles, they can enhance an AP specialist’s credentials and opportunities for advancement.
Salary and Job Outlook
According to the U.S. Bureau of Labor Statistics (BLS), accounts payable and auditing clerks earn a median annual salary of $43,650 as of 2021. Those in the top 10th percentile of earners make over $61,500.
Geographically, the highest average salaries tend to be in regions with a high cost of living like the Northeast, West Coast, and certain major metropolitan areas. Accounts payable salaries also vary by industry, with the highest pay in utilities, management of companies, and finance and insurance.
The BLS projects employment for billing, accounting, and auditing clerks overall to show little to no change in the coming decade. However, there is still healthy demand for qualified accounts payable professionals with the right skill sets. Opportunities may be most abundant at certain high-growth companies and in sectors like healthcare that are expanding.
Advancement Opportunities
The experience gained as an accounts payable specialist can lead to other advancement opportunities, including:
- Accounts payable manager or supervisor – Overseeing an accounts payable team or department.
- Accounting manager – Managing a company’s overall accounting function.
- Controller – Overseeing all accounting operations and finances for an organization.
- Chief financial officer – Heading up the financial operations and strategy for a company.
Many accounts payable specialists leverage their skills to transition into related finance roles in payroll, billing, credit management, or general accounting. Further education and certifications can also boost long-term career mobility.
Conclusion
Accounts payable specialists provide a vital service to organizations by managing their invoice payment processes. While the core job duties revolve around processing, verifying, and paying vendor invoices, excellent customer service skills are also critical. AP roles require detail-orientation, organization, analytical capabilities, and expertise in basic accounting procedures.
Professionals who enjoy working with numbers, solving problems, and building relationships make good accounts payable specialists. With solid experience and job performance, accounts payable clerks can advance into supervisory and management roles. Certifications like the CAPP can also boost credentials. As an essential function with transferrable skills, accounts payable positions provide a solid starting point for rewarding finance careers.