what is an accounts payable clerk?
An accounts payable clerk performs a range of clerical and accounting tasks associated with the accounts payable process. This includes tracking and recording purchase orders, processing payments, and processing and verifying invoices. Day-to-day work also includes paying vendors, issuing stop payments or purchase order amendments, and disbursing petty cash. If you enter this career field, you will also handle sales tax reporting. Although a degree is not required, many accounts payable clerks hold an associate's degree in accounting. The main requirements to excel in this field, however, include strong time management and communication skills and incredible attention to detail.
other daily tasks of an accounts payable clerk
An accounts payable clerk works with existing company accounts as well as incoming and outgoing payments. You must work in compliance with the policies and procedures of the company to perform financial transactions, prepare bills, and issue bank deposits. Not only will you follow the procedures and policies of the company, but you must also do your job in accordance with state or even federal policies and procedures.
playing an important role in many industries
As an accounts payable clerk, you play a vital role in the company as you keep track of incoming and outgoing expenses and organize data in a way that is easily found and tracked. You must reconcile entries to balance books by maintaining accounting ledgers and posting transactions on accounts. You must compare system reports to balances as a small error can lead to bigger problems later on down the road. Accounting errors can lead to financial problems or even issues with the IRS by not reporting the correct earnings and expenses.
view jobsaverage salary of an accounts payable clerk
According to the Occupational Outlook Handbook from the U.S. Bureau of Labor Statistics (BLS), the accounts payable clerk position is listed under bookkeeping, accounting, and auditing clerks. In this role, you earn an average of £42,410 per year. This breaks down to £20.39 per hour. In some locations, such as Los Angeles, you earn more. You earn less in other areas of the country where the cost of living is lower, such as in Kansas or Alabama.
other factors that affect pay
While the median salary for an accounts payable clerk is over £42,000 a year in the U.S., this is not likely to be your starting salary in an entry-level position with no experience. According to the BLS, the lowest 10% of earners in this position earned just over £27,000 annually. The highest earners receive nearly £64,000 per year. As you gain more experience, you can expect to improve your income. Getting more education and/or certification and training in the accounting field will also help you boost your pay. Another factor to consider is the industry in which you will work. Accounts payable clerks in the finance, insurance, and technical services industries tend to make the most money.
types of accounts payable clerks
Apart from the accounts payable clerk position, there are also accounts payable specialists. An accounts payable specialist has the job of making sure that the bills of a company are paid. Working with those in the accounts payable clerk position, they create reports, record transactions, and track expenses. It is important to note that, depending on your industry, you may have a title that differs from that of accounts payable clerk. Bookkeeping clerk, accounting clerk, and auditing clerk are common titles. You essentially perform the same tasks regardless of your title, however.
working as an accounts payable clerk
If you're looking for a rewarding entry-level position in the accounting field, a job as an accounts payable clerk should be on your list. This career offers a competitive salary and opportunities for advancement. Also, the work environment is indoors and gives you the chance to work with a team of professionals. Moreover, because you will typically spend your days in an office, you will often enjoy a regular "9 to 5" schedule during weekdays. Gaining experience, certification, and training helps you expand your opportunities and make more money in an important field.
When you're applying for a specific job, it is important to understand what that job will entail. Here's a closer look at what your duties and responsibilities, work environment, and work hours will be.
-
accounts payable clerk job description
An accounts payable clerk has a multitude of daily duties and responsibilities. These duties include:
- Reporting sales tax by calculating the requirements on paid invoices
- Disbursing petty cash
- Paying vendors
- Verifying federal ID numbers
- Preparing checks
- Resolving purchase orders
- Maintaining account ledgers
-
work environment
As an accounts payable clerk, you usually spend your day in an office under the supervision of a supervisor or manager. You spend much of your time in front of a computer tracking and entering data into a spreadsheet. If you provide services for multiple firms, you often travel to different job sites during your workday. While much of your work will be done alone, you also collaborate with accountants, financial managers, and other clerks.
-
various industries and businesses
Since an accounts payable clerk plays a vital role in businesses and organizations, you can work in various industries and companies. Businesses of all sizes use accounts payable clerks to manage their financial transactions and records. You can find accounts payable clerks in government agencies, non-profit organizations, and local businesses. Some of the industries in which you can find employment include retail and wholesale trade, healthcare and social assistance, and financial services.
-
working remotely is becoming easier
With the availability of cloud-based systems and reliable internet throughout the country, more and more jobs are transitioning to remote work. Because the accounts payable position is done largely using computer programs and systems, the availability of remote positions is growing. Basic requirements of working remotely as an accounts payable clerk include a fast and reliable internet connection, mobile phone, and access to a company's financial records and accounts payable software.
-
work schedule
An accounts payable clerk typically works regular full-time office hours from Monday to Friday. During tax time, at the end of the fiscal year, and when performing monthly and yearly audits, you often work longer hours. This is typically a full-time position, but part-time roles are also available.
-
job outlook
According to the BLS, the employment outlook for the accounts payable clerk position will decline by 6% from 2019 to 2029. Technological change is the biggest reason for this expected decline. Cloud computing and software innovations have streamlined the accounts payable process and automated a large number of tasks that were previously performed by an accounts payable clerk. This means that fewer employees are required to do the same job. Despite this expected decline, however, the BLS reports that jobs in this field remains plentiful due to the number of employees required to manage company accounts across the country.
education & skills
To become an accounts payable clerk, you must have a high school diploma or have earned an equivalent, such as a GED. You earn more money with an associate's degree in basic accounting, and going on to earn a bachelor's degree opens up higher-paying managerial roles. Some employers prefer that the applicant have experience in the accounts payable area, but you will also find plenty of entry-level positions requiring nothing more than a high school diploma.
training
If you have no experience in the field, you typically receive on-the-job training as an accounts payable clerk. You work under the guidance of a supervisor or experienced employee to learn various tasks, including double-entry bookkeeping. In some cases, you also participate in classroom training to learn how to use software and company systems. For most entry-level accounts payable clerks, this on-the-job training takes around six months.
available certifications
Earning certain certifications will help you land a good position and further your career in the accounts payable field. Available certifications include the Certified Bookkeeper designation from the American Institute of Professional Bookkeepers. Earning this requires that you gain work experience, pass an exam, and adhere to a code of ethics. You will also have the opportunity to earn the Certified Public Bookkeeper designation from the National Association of Certified Bookkeepers.
skills & competencies
There are several skills you need to effectively perform your job. Not only do you need organizational skills and the ability to pay attention to details, but you must also have:
- General math skills
- Data entry skills
- Analytical skills
- Multitasking skills
-
computer skills
You perform much of your work in accounts payable on the computer, making computer skills a requirement for this position. Expect your day-to-day work to include spreadsheets and bookkeeping software. You will also work with company-specific programs and systems, and much of your communication will be digital.
-
The importance of communication skills
As an accounts payable clerk, it is vital that you develop strong communication skills. While you work alone often, you regularly communicate with employees and supervisors in your department and other areas of the company. You discuss financial reports and must be able to clearly relay important information about company accounts.
-
integrity and ethics
Accounts payable clerks are privy to very sensitive company information. As such, it's important that you maintain integrity and confidentiality when managing financial documentation. You must also ensure that records are transparent and guard against any potential misuse of company funds.
FAQs
FAQs about working as an accounts payable clerk.
-
What does an accounts payable clerk do?
An accounts payable clerk balances books on the accounting ledgers and verifies expense reports. You also ensure that there aren’t any errors in the books that can lead to bigger problems down the road.
-
What skills are needed to be an accounts payable clerk?
An accounts payable clerk needs a multitude of skills to properly do their work. At a basic level, you need data entry skills, general math skills, and the ability to learn new software. You also need the ability to pay attention to details and communicate effectively within your organization.
-
Is an accounts payable clerk an accountant?
An accounts payable clerk is not the same thing as an accountant. While an accounting clerk might be responsible for one type of account, such as accounts payable, an accountant is responsible for a wider scope.
-
Is accounts payable a stressful job?
Being an accounts payable clerk can be a stressful job during certain times of the year, such as tax time. In general, however, most of the work is relatively stress-free if performed well.
-
Is accounts payable an easy job?
Accounts payable isn't necessarily an easy job, but you will find it rewarding. You are tasked with overseeing company accounts and using your math, data entry, and organization skills to keep finances in order.
