What Does An Accounts Payable Clerk Do?

outsourced accounting department

The following is a list of various usual duties included in accounts payable clerks:

Processing and paying invoices and bills linked to a company's purchases from several vendors and suppliers falls to an accounts payable (AP) clerk. One of the important accounting positions that allow a company entity to properly discharge its commitments in terms of cash flow and other connected services is that one.

An accounts payable clerk's primary obligations include some of the following:

Analyzing Invoices

The competence of an AP clerk to accept and handle invoices is another crucial duty. Every time bills arrive from different vendors, the clerk has to go through and check every figure on the bill to ensure that everything is accurate, verify whether the correct approvals were made, assign the bill to the correct general ledger account, and then enter the bill into the accounting system. In a computerized accounting system, this could entail building accounting records whereby every received bill is noted.

Finishing Suppliers

The accounts payable clerk pays the due sums following receipt of invoices and close inspection. This covers writing checks, other electronic payments, wire transfers of monies, or any other kind of payment. To maintain strong supplier relations, the clerk is in charge of checking all payments and making sure checks are signed correctly as well as completing payments within designated periods.

Keeping Track of Things

Records of supplier invoices, payments, accounts balance, and all other information on what was traded between suppliers and businesses are vital. Both paper-based and electronic systems require company accounts payable clerks to keep appropriate storage of such documents. Accounting audits and helping with issues of dispute payment depend on documentation.

Overseeing Credit Accounts

It is interesting to note that some accounts payable roles are connected to credit accounts like corporate credit cards. This means looking over the invoices and expenses, balancing the accounts, paying credit card debt, and spotting bogus charges. Good credit control also guarantees that the business may benefit from early payment reductions, cash-back bonuses, and other incentives.

Monitoring the Aging Reports for Account Payable

Using aging reports pointing to the invoices due in the next 30, 60, and 90 days and more, AP clerks enforce early payments and avoid receivables. Periodically reviewing these aging buckets allows the business to find any monies past due and stop expensive late fees or collection actions. Old unpaid invoices should be given top importance when it comes to increasing cash flow and producing more money.

Handling the job of answering questions from suppliers and vendors falls to corresponding with vendors' accounts payable clerks. Through emails, phone, or other media, this includes responding to consumer questions on the progress of orders, payments, receipts, bills, and any other procurement matter. Therefore, one very important factor to give thought to is interpersonal communication ability.

Managing 1099 Tax Forms

Any vendor who provides the company with more than $600 worth of services in a year must be given a Form 1099 come the end of the year. Charged with tracking vendor payments, identifying 1099 recipients, and seeking W-9 tax ID forms as well as creating and issuing 1099 tax forms, the accounts payable clerk plays another duty inside the accounts payable department of a company.

Finally, accounts payable clerks play the crucial role of the secondary check and balance for the expenses of a company. They handle invoices, timely vendor payments, documentation, and supplier consultation to guarantee that company financial operations go without a hitch and that there is enough cash available. Those with a strong sense of observation, solid organizing skills, and mathematical ability will find the accounts payable positions perfect. For the MSc in Accounting and Finance holder, it provides work stability in the accounting and financial fields.

Contact us here for Accounts Payable now!

Custom Accounting Solutions For Your Small Business

Contact Us Today