What does an accounts payable officer do?

An accounts payable officer is part of an organisation’s finance team and is responsible for ensuring payments are approved and processed on time, tracking what the company owes to suppliers and keeping accurate records so that balance sheets are error-free, forecasts and budgets can be optimised, and mistakes and fraud prevented.

Accounts payable officers work in a wide variety of industries and settings, from financial firms through educational institutions to large corporations.

Accounts payable skills and qualifications

To succeed in their role, a good accounts payable officer needs to have the following skills and aptitudes:

• Excellent data entry skills
  
• A methodical approach and attention to detail
• Knowledge of accounting principles and accounts payable processes
• Ability to work independently
• Strong organisational skills
• Experience in using Microsoft Excel and accounting software such as QuickBooks, XERO or MYOB

Accounts payable experience requirements

Although many budding finance professionals choose to pursue a degree or similar formal qualification, this is not mandatory, and accounts payable can be an entry-level position if an employer is open to hiring staff with entry-level experience.

However, even an accounts payable officer with no previous work experience should have a sound understanding of basic bookkeeping rules and some accounting skills. They should also be experienced in using Microsoft Office products, in particular Excel.

Accounts payable education and training requirements

Although no formal qualifications are required to work in an accounts payable role in Australia, most employers still prefer to hire someone with an accounting qualification.

You may want to look for applicants who have completed a Diploma of Accounting, a Bachelor of Accounting or an equivalent qualification in finance, business or commerce. Other applicants may have no formal qualification but several years of experience in the role. Who you choose to hire depends on your company culture and preferences.

Accounts payable salary expectations

According to Indeed Salaries, the average salary for an accounts payable officer is $66,908 per year. Some government agencies, such as Queensland Rail, and universities are reported to be paying their accounts payable staff above-average rates.

Job description samples for similar positions

There are several roles that are similar to that of an accounts payable officer. Read the descriptions to see if you need to hire one of these specialists in addition to or instead of an accounts payable officer:

• Accounts receivable officer
• Assistant accountant
• Accounting clerk
• Accounting assistant

Accounts payable job description FAQs

What career progression might an accounts payable officer expect?

Advancing from an accounts payable role typically requires experience and a degree. Once an accounts payable officer has obtained a suitable qualification, such as a bachelor’s degree or a diploma in finance or business, they can apply for a more senior or managerial role, become a bookkeeper and ultimately progress into an assistant accounting position.

What’s the difference between accounts payable and accounts receivable?

In a nutshell, accounts payable and accounts receivable are two sides of the same coin. Accounts payable represents money that a company owes to its suppliers and is therefore considered a liability, while accounts receivable represents money owed to a business by customers, making it an asset.

As an employer , it’s important that you keep both functions separate to reduce the risk of irregularities, especially if you get audited. For example, an accounts payable clerk, who pays bills, should not be able to enter invoices, which is reserved for accounts receivable staff.

Do I need an accounts payable officer if I have a bookkeeper?

Yes, because they perform different tasks in your organisation. An accounts payable officer is responsible for one particular area of your accounting, just as an accounts receivable officer oversees another section. A bookkeeper, on the other hand, is a more senior employee who oversees both accounts payable and accounts receivable, prepares statements and reports and makes sure everything is in order.

How do I know if a candidate is a suitable accounts payable officer for my company?

In addition to assessing a candidate’s previous experience and qualifications in accounting, you can also explore their attention to detail during the interview. There are some standardised psychometric tests, such as the Attention to Detail numeric test, which you can ask applicants to complete. These tests are ideal for applicants who want to work with numbers and will give you an indication of their ability to spot subtle differences in data. In a real-life business situation, such an eye for detail can prevent errors and save you a lot of money.