What is Accounts Payable? Job Description and Responsibilities
It’s no secret that most companies need goods and services to operate daily, and processing payment for those essentials is the responsibility of the accounts payable specialist.
As an account payable specialist, also referred to as a clerk, you will receive invoices from various vendors and supply companies and keep track of the information with the assistance of accounting software programs. Once the accuracy of an invoice has been completed, the accounts payable specialist issues payment and logs the details of the transaction. Some accounts payable specialists are asked to help in the human resources department with payroll duties from time to time.
Accounts payable specialists also organize a company’s bills using spreadsheets and databases in addition to software programs to make records of invoices, contracts and payment due dates. As a result, the company ensures all its bills are paid on time and avoids additional charges or contract problems.
The need for an accounts payable specialist is usually at large companies, firms, businesses and various organizations across the business sector in such places as law firms, medical offices, industrial businesses, and retail stores, to name a few.
If you are deadline driven and don’t mind working overtime during busier times of the year, you might want to consider a career as an accounts payable specialist.
In addition to work experience and some education, employers prefer accounts payable specialists who have a set of important skills. These might include:
General Computer Skills:
Bookkeeping, accounting, and accounts payable clerks should know how to use computer spreadsheets and bookkeeping software.
Extra Detail Oriented:
Bookkeeping, accounting, and accounts payable clerks are responsible for producing accurate financial records. They must pay attention to all details to avoid making mistakes and be able to correct errors that others have made.
Bookkeeping, accounting, and accounts payable clerks have overall control of a company’s financial records, which they must use correctly and keep confidential. It is necessary that an accounts payable specialist keep records transparent and keep abreast of any misuse of a company’s funds.
Bookkeeping, accounting, and accounts payable clerks use numbers daily and should be comfortable with basic arithmetic skills and problem solving.
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If you want to pursue a career as an accounts payable specialist some future employers require a candidate to have at least a high school diploma or its equivalent. While many employers offer entry-level positions that do not require prior experience or training, employers may show preference to candidates with several years of accounting-related experience or formal education over those without.
It’s not unusual for an accounts payable specialist to earn an Associate’s Degree in accounting, finance or payroll accounting. Candidates with more specialized skills and training may have an advantage over those who simply have on-the-job experience.
It is not common for a candidate to have a Bachelor’s Degree in accounting or a related field to be considered for an accounts payable specialist position. But those who have earned a bachelor’s degree sometimes look for clerk positions to gain employment in a specific company or industry, while ultimately set themselves on a path to pursue a higher position.
Many online and campus-based colleges and technical schools offer certificate programs specific to accounts payable specialists. Should you opt to enroll in said programs, courses often include: Basic financial accounting, business math, computerized accounting and written business communication.
In terms of getting certified to become an accounts payable specialist the Institute of Financial Operations is a professional association where you can earn two distinct levels of accounts payable certifications:
Certified Accounts Payable Associates
This is a designation for those who have less than 5 years of accounting or bookkeeping experience. This certificate lets an accounts payable specialist show their skills within the profession while working at an entry-level position within a company or organization. CAPA candidates need at least 1 year of experience working with accounts payable and an Associate’s Degree in accounting or a related field, or 3 years of relevant work experience in lieu of a formal education. Once experience and/or educational qualifications are completed, candidates may take the CAPA exam. The CAPA designation is given after successful completion of the exam.
Certified Accounts Payable Professional
This is a designation for accounts payable professionals who meet one of the following qualifications:
If those certifications are of no interest to the candidate, an alternative certification is offered via the American Institute of Bookkeepers. This association offers the Certified Bookkeeper Designation to qualified candidates. To qualify for the designation, candidates must have at least 2 years of professional experience in accounting, bookkeeping, accounts payable or a related field. After the minimum qualifications are met, candidates are required to pass a 4-part exam covering various accounting-related topics. The first two portions of the exam must be taken at one of the 300 Prometric Testing centers located nationwide. The remaining two sections are in offered in an open-book format and are available online.
Accounts Payable Salary
Sometimes, bookkeeping, accounting, and accounts payable specialists may work longer hours to meet deadlines at the end of the fiscal year, during tax time, or when monthly or yearly accounting audits are required.
According to Salaray.com, bookkeeping, accounting, and accounts payable specialists held about 1.7 million jobs in 2016. The largest employers of bookkeeping, accounting, and accounts payable clerks were as follows:
The professional, scientific, and technical services industry includes the accounting, tax preparation, bookkeeping, and payroll services sub-industry.
Bookkeeping, accounting, and accounts payable specialists typically work in offices. Bookkeepers who work for numerous firms simultaneously may visit their clients’ places of business. They often work solo, but sometimes collaborate with other accountants, managers, and auditing clerks from other departments.
Most bookkeeping, accounting, and accounts payable specialists work full-time. However, according to Salary.com, about 1 in 4 worked part-time in 2016. Again, it is not unusual that these employees work additional hours to meet deadlines at the end of the fiscal year, during tax time, or when monthly or yearly accounting audits are required.
According to Salary.com the the median annual accounts payable specialist salary is $39,246, as of April 29, 2018, with a range usually between $35,243 to $43,790, however this can vary widely depending on where you live.
For example, in California, Salary.com cites these examples:
California Accounts Payable Clerk Salaries:
|Accounts Payable Clerk||$44,919||Antioch, CA|
|Accounts Payable Clerk||$41,685||Apple Valley, CA|
|Accounts Payable Clerk||$42,237||Bakersfield, CA|
|Accounts Payable Clerk||$46,496||Berkeley, CA|
New York Accounts Payable Clerk Salaries:
|Accounts Payable Clerk||$38,089||Binghamton, NY|
|Accounts Payable Clerk||$42,870||Binghamton, NY|
|Accounts Payable Clerk||$47,454||Bronx, NY|
|Accounts Payable Clerk||$47,454||Brooklyn, NY|
Texas Accounts Payable Clerk Salaries
|Accounts Payable Clerk||$34,705||Harlingen, TX|
|Accounts Payable Clerk||$39,910||Houston, TX|
|Accounts Payable Clerk||$39,161||Irving, TX|
|Accounts Payable Clerk||$35,336||Killeen, TX|
Related Alternative Careers
If you can’t find a position as an accounts payable clerk, there are alternatives. For instance, large companies typically have several different types of specialized accounting clerks, so you might get a similar job in the same setting. To illustrate, as an accounts receivable clerk, you would keep track of a company's invoices to make sure that clients and customers make appropriate payments. Alternatively, you could work as an auditing clerk, where your role would be to verify the mathematical accuracy of financial documents and postings. For either of these positions, you need a high school diploma, and you may need to have some postsecondary courses, too.
As for the outlook for the employment of bookkeeping, accounting, and as an accounts payable specialist, it is projected to show little or no change from 2016 to 2026, according to the U.S. Bureau of Labor Statistics.
The BLS reports technological change is expected to reduce demand for these workers. Software innovations, such as cloud computing, have automated many of the duties performed by bookkeepers and accounts payable clerks. As a result, the same amount of bookkeeping work can be completed by less employees, which is expected to lead to job losses for bookkeepers over the next 10 years.
With more routinized tasks automated, these roles are expected to take on a more analytical and advisory role over the next 10 years, the BLS adds. For example, rather than performing manual data entry, bookkeepers will focus their attentions on analyzing a clients’ books and honing in on possible areas for efficiency gains.
Since bookkeeping, accounting, and accounts payable specialists make up a large group, there will be many job openings from workers leaving the occupation. In the end, this means opportunities to enter this field should be more, despite the slightly projected decline in employment.