Accounts Payable Manager Job Description, Skills, and Salary
Get to know about the duties, responsibilities, qualifications, and skills requirements of an Accounts Payable Manager. Feel free to use our Accounts Payable Manager job description template to produce your own. We also provide you with information about the salary you can earn as an Accounts Payable Manager.
Who is an Accounts Payable Manager?
Accounts payable (AP) is a term used in accounting to refer to the money owed to vendors or suppliers for products or services purchased on credit. On a company’s balance sheet, the sum of any outstanding payments owed to its suppliers is reported as the balance of accounts payable, whereas the cash flow statement will show the growth or reduction in total AP from the previous period.
To protect your cash and assets and avoid paying for erroneous invoices, pay close attention to your AP expenses and establish internal controls. It’s critical to keep an orderly and well-run accounts payable process to stay on top of the impact AP has on your bottom line.
Therefore an Accounts Payable Manager is a mid-level position. It is the function in charge of managing and supervising the organization’s accounts payable department and workforce. It also entails ensuring that corporate policies are followed, the general ledger is kept up to date, and all payments are processed on the company’s behalf.
The Accounts Payable Manager oversees the staff that processes accounts payable and vendor services, including maintaining records of amounts owed, validating invoices, computing discounts, coding expenses, producing vouchers, and issuing checks, ACH transactions, and foreign wires for payment. The Accounts Payable Manager generates new accounting forms as needed and prepares financial reports for various internal departments.
Accounts payable register and other associated reports are prepared. Provides staff with accounts payable and purchasing procedures guidance, coordination, and training.
Accounts Payable Managers are in charge of the Accounts Payable department’s personnel and processes. Accounts Payable Supervisors is another name for these people.
The accounts payable department of a company is in charge of documenting and maintaining the company’s spending and reporting. Accounts payable is in charge of organizing and reporting a company’s cash flow outflow to pay for its operating costs, liabilities, and expenses.
Importance of Account Payable Department
Accounts payable (AP)is in charge of accurately recording what’s due to suppliers, as well as ensuring payments are properly approved and processed. Accounts payable information must be accurate to produce an accurate balance statement.
This department is also crucial because:
- AP departments ensure that suppliers’ information is correct and up to date in the company’s systems, ensuring excellent connections with them. They ensure that suppliers are paid on time and work to strengthen relationships to obtain better payment terms and discounts.
- AP departments aid in the prevention of errors and fraud.
The fundamental AP procedure is as follows: the invoice is received by the AP clerk. The clerk manually enters the information and compares the invoice to the purchase order and the appropriate GL account. The invoice is sent to the clerk for approval. The clerk then schedules payment against the invoice after it has been approved.
Understanding double-entry bookkeeping and the idea of debits and credits is critical in the AP process. By entering every financial transaction twice: as a debit in one account and a credit in another, double-entry bookkeeping helps to eliminate accounting errors.
When a business receives a bill, it credits accounts payable and debits an asset account (or expense) in the general ledger. When Bob’s Balloons pays Balloonys’ bill, the AP account is debited and the inventory asset account is credited.
Accounts payable is a total of all accounts payable that is reflected on the company’s balance sheet. Assets = Liabilities + Equity in the balance sheet equation. The balloons, in the example above, are assets, but the bill for them is a liability.
7 Ways to Get Your Accounts Payable Department Organized
- Obtain the appropriate documentation. For all goods and services, a purchase order is always required. Maintain a vendor master file, which serves as a central repository for all vendor information, including W-9s and tax identification numbers.
- All records should be centralized. If you’re using software, enter invoices as soon as possible; a good practice is to do it the same day they arrive. Include a date stamp after it’s been processed. In the journal, keep track of all accounts payable. Keep all of your records in one location.
- Every day, reconcile your finances. Check to see if the invoices match the purchase orders. Keep track of all disagreements and their resolutions.
- Separate responsibilities. Accounting is one of the areas where unintentional errors and outright fraud are most prone to occur. Different personnel should be in charge of processing and approving payments.
- Electronic payment methods should be included. Automated clearing house (ACH) transfers encrypt payment data for security and allow the company to benefit from faster payment discounts.
- Take the example of electronic data interchange (EDI). Paperless methods save time and ensure that invoices are processed correctly. This might also assist a business in obtaining discounts and favorable payment arrangements. Companies that use supplier relationship management systems for procurement can automate the receipt and clearance of purchase orders and invoices. They can also keep better track of merchandise and services received, as well as pay for them.
- Accounts payable should be automated. AP automation can save your company time and money while also protecting it from costly blunders. According to the Aberdeen Group, AP automation can minimize days payable outstanding (DPO) by an average of 5.55 days.
Accounts Payable Manager Job Description
Below are the Accounts Payable Manager job description examples you can use to develop your resume or write an Accounts Payable Manager job description for your employee. Employers can also use it to sieve out job seekers when choosing candidates for interviews.
The duties and responsibilities of an Accounts Payable Manager include the following:
- Assist, guide, and train support employees on non-routine policy interpretations or transaction difficulties.
- Maintain correct records by implementing reporting procedures and internal controls.
- Maintain a variety of financial information, files, and records to provide a current reference and audit trail for compliance.
- Participate in the development of departmental policies.
- Perform supervisory duties for the accounts payable department, such as interviewing and suggesting new hires, offering or organizing training for employees, reviewing employee performance, and recommending personnel actions to guarantee appropriate and competent staffing.
- Ensure accuracy, and reconcile a range of accounts and reports.
- Assist with month-end closeout chores, such as spending accruals.
- Oversee and assist with the creation of the 1099 tax form.
- Investigate, analyze, and resolve issues with payments and vendors.
- Assist an accounts payable supervisor and six processors who report to you with leadership, guidance, and coaching.
- Develop and implement a specified process to guarantee that newly acquired properties are appropriately integrated into the shared services accounts payable function.
- Maintain the company’s vendor database, including set-up, maintenance, periodic reviews, and account purging.
- Regularly seek invoices from consultants who are not invoicing on a timely basis based on pay-as-you-go conditions.
- Approve check runs, including consultant pay-when-paid check runs, in which consultants are paid a percentage of their budget dependent on client payments.
- Examine any requests for exceptions to consultant payment terms made by the Project Manager.
- comply with consultant billing and payments, and work with internal business leaders to resolve recurring problems.
- Address payment concerns, build connections with consultants, communicate payment statuses, and collaborate with internal Project Management teams.
- Assist in the adoption of AP accounting software to help automate and streamline the process.
- Ensure AP and spending controls comply with SOX.
- Own the whole pay cycle, from PO origination through invoicing, vendor onboarding, purchase to pay, and cost control.
Qualifications
- Bachelor’s degree in finance, accounting, business, or social science.
- Professional certifications from ICAN/ACCA will be a plus.
- 3 years of experience in a similar job function is required.
- Capable of juggling many tasks with competing priorities and deadlines at the same time.
- Strong Excel abilities are required, and familiarity with ERP accounting software such as Oracle is desired.
- Knowledge of multi-state and federal laws, rules, and regulations relating to Accounts Payable, including interpretations
Essential Skills
- Ability to Analyze: Analytical skills entail acquiring data from a variety of sources and analyzing to arrive at a logical conclusion that benefits the company.
- Communication Skills Your ability to communicate your thoughts, opinions, and ideas to others around you is demonstrated by your communication skills.
- Skills in Organizing
- Organizational skills are necessary for working as efficiently as possible by allowing you to focus on the tasks at hand while maintaining a tidy workstation.
- Possess exceptional problem-solving skills.
- Possess excellent presentation skills to enable easy internal client education on accounting principles.
- Possess perfect verbal and written skills.
- Possess excellent planning skills to enable easy work-life balance.
- Communication and interpersonal abilities are important.
- Computer skills, particularly in the areas of business solutions and bookkeeping software.
- Strong problem-solving and planning abilities.
- Another ability that the accounts payable manager must have is creativity. He or she must be able to think of ways to increase service delivery and payment fulfillment to vendors who supply his or her organization
- Detail-oriented
- Supervising experience
- Account payable
- Customer relationship management (CRM) and enterprise resource planning (ERP) software knowledge.
- Understanding of spreadsheets and accounting software.
- Knowledge of bookkeeping procedures and financial accounting.
- The importance of collaboration and iteration can’t be overstated.
- Working knowledge of commercial information systems.
How to Become an Accounts Payable Manager
Accounts Payable Manager is a mid-level position. It is the function in charge of managing and supervising the organization’s accounts payable department and workforce. It also entails ensuring that corporate policies are followed, the general ledger is well-maintained, and all payments are made on the company’s behalf. The following are some measures you can take to become an Account Payable Manager:
- A bachelor’s degree is required. Begin by earning your bachelor’s degree in accounting, finance, or a closely related discipline.
- Internships are a great way to learn new skills. Next, consider doing an internship to obtain job experience, strengthen your accounting skills, and learn important technical skills such as tax filing procedures, CRM system knowledge, and ERP software.
- Obtain certification in your area of expertise. Obtaining a certification in your area can boost your recruiting potential and establish your knowledge, even if it isn’t required to begin your career. One such certification that can help you advance in your career is the Certified Accounts Payable Associate (CAPA).
- Keep your education going. While a master’s degree isn’t required, getting a graduate-level accreditation in finance or accounting can help you advance your career.
- Financial experience and managerial abilities are required.
- experience working as an Accounts Payable Clerk.
- past work experience as an Accounts Payable Supervisor or Office Manager.
- familiarity with essential accounting software (such as Sage, FreshBooks, QuickBooks).
After accumulating enough experience in this role, you can move on to the following careers:
- Senior Accounts Payable Manager
- Accounts Receivable Manager
- Senior Accounts Receivable Manager
Where to work as an Accounts Payable Manager
If you are looking for Accounts Payable jobs, the following are the industries in which you may easily get one:
- Retail and manufacturing industries
- Technology industry
- Hospitality industry
Account Payable Manager Salary Scale
The pay for an Accounts Payable Manager varies depending on the industry in which they work. Companies in the technology, professional, and manufacturing sectors pay the highest salaries for Accounts Payable Managers. Working for Technology businesses, Accounts Payable Managers can earn up to $75,959 per year. Retail and manufacturing are the industries where Accounts Payable Managers play the most important roles. However, the Technology business pays the most for Accounts Payable Managers, with an average yearly compensation of $75,959. They earn $75,196 in the Professional industry and $72,854 on average in the Manufacturing industry. Finally, Accounts Payable Managers who work in the Technology area make 9.7% more than Accounts Payable Managers who work in the Hospitality industry.
In the United States, the typical Accounts Payable Manager compensation is $71,113 per year or $34.19 per hour. People on the lower end of that spectrum, specifically the bottom 10%, earn around $54,000 per year, while the top 10% earn around $93,000. As with most things, location is important. Accounts Payable Manager wages are highest in Pennsylvania, New Jersey, Delaware, Virginia, and Louisiana.
In the United Kingdom, the national average compensation for an Accounts Payable Manager is £42,568. In Omagh, the United Kingdom, the average pay for an Accounts Payable Manager is £43,752 per year and £21 per hour. An Accounts Payable Manager’s typical compensation ranges from £30,756 to £54,302. An Accounts Payable Manager often has a Bachelor’s Degree as their greatest degree of schooling. This wage study is based on salary survey data in Omagh, United Kingdom, acquired directly from employers and anonymous employees.