Accounts Payable Job Duties
Hear from Our Finance Team
by Venturesathi | 24th Oct 2025 | 8 mins read
If you’re considering a career in Accounts Payable or wondering what AP professionals actually do all day, you’ve come to the right place. I’m not going to give you a textbook definition or a sanitized job description. Instead, I’m going to tell you what it’s really like to work in AP—the responsibilities you’ll own, the fires you’ll put out, and the skills you’ll develop that nobody mentions in the job posting.
I’ve been working in Accounts Payable for 4 years, and I can tell you this: it’s nothing like what I thought it would be when I started. It’s more challenging, more strategic, and honestly, more interesting than people give it credit for.
I’ve been working in Accounts Payable for 4 years, and I can tell you this: it’s nothing like what I thought it would be when I started. It’s more challenging, more strategic, and honestly, more interesting than people give it credit for.
What Is Accounts Payable?
Accounts Payable isn’t just about “paying bills.” That’s like saying a chef just “cooks food.” Technically true, but it misses everything that makes the job complex and valuable.
At its core, AP is about managing the money flowing out of your company. Every vendor relationship, every purchase, every invoice that comes through the door—that’s your territory. You’re the gatekeeper between your company’s cash and everyone who wants a piece of it. And trust me, that’s a position with more responsibility than most people realize.
Companies need Accounts Payable teams because without us, chaos reigns. Vendors don’t get paid on time (hello, strained relationships and legal issues). Financial transparency becomes impossible. Cash flow forecasting is just guesswork. Audits turn into nightmares. We’re the ones who keep the financial supply chain moving smoothly. According to industry research, companies with efficient AP processes can reduce invoice processing costs by up to 80%.
Learn more about how effective back office management boosts your bottom line →
At its core, AP is about managing the money flowing out of your company. Every vendor relationship, every purchase, every invoice that comes through the door—that’s your territory. You’re the gatekeeper between your company’s cash and everyone who wants a piece of it. And trust me, that’s a position with more responsibility than most people realize.
Companies need Accounts Payable teams because without us, chaos reigns. Vendors don’t get paid on time (hello, strained relationships and legal issues). Financial transparency becomes impossible. Cash flow forecasting is just guesswork. Audits turn into nightmares. We’re the ones who keep the financial supply chain moving smoothly. According to industry research, companies with efficient AP processes can reduce invoice processing costs by up to 80%.
Learn more about how effective back office management boosts your bottom line →
Hear Accounts Payable Responsibilities from our Team
1. Invoice Processing & Verification
On paper, this sounds simple: receive invoice, process invoice, done. In reality? You’re basically a detective.
Every invoice that hits your desk needs to be interrogated. Does this match the purchase order? Did we actually receive these goods? Is this vendor even in our system? Why is this invoice for $10,000 when the PO says $8,500?
Every invoice that hits your desk needs to be interrogated. Does this match the purchase order? Did we actually receive these goods? Is this vendor even in our system? Why is this invoice for $10,000 when the PO says $8,500?
What you’ll actually do:
- Cross-reference invoices against purchase orders (POs) and delivery receipts—and hunt down the discrepancies that don’t match
- Verify vendor information and catch potential fraud before it happens (yes, fake invoices are a real thing)
- Code invoices to the correct general ledger accounts—which means understanding your company’s chart of accounts inside and out
- Flag duplicate invoices because somehow, vendors love sending the same invoice three times
- Communicate with vendors when information is missing or incorrect, which requires more diplomacy than you’d think.
2. Payment Processing & Execution
This is where the rubber meets the road. You’re responsible for ensuring vendors get paid accurately and on time—but not too early (because cash flow matters) and not too late (because late fees and angry vendors matter too).
Studies indicate that only 32% of companies prioritize paying early to capture discounts, with many organizations missing significant cost savings opportunities
Studies indicate that only 32% of companies prioritize paying early to capture discounts, with many organizations missing significant cost savings opportunities
What you’ll actually do:
- Schedule payments according to terms (Net 30, Net 60, 2/10 Net 30—you’ll learn to love payment terms)
- Process different payment methods: checks, ACH transfers, wire transfers, virtual cards, and increasingly, digital payment platforms
- Take advantage of early payment discounts when they benefit the company
- Manage payment runs and get approvals from the right people (this can be like herding cats)
- Handle rush payments when someone really needs something expedited
- Reconcile payment batches to ensure everything that was supposed to go out actually went out
The reality check: You’ll have vendors calling you asking where their payment is. You’ll have colleagues asking you to rush a payment because they forgot to submit the invoice on time. You’ll need to balance being helpful with protecting company policies. It’s a people job as much as it’s a numbers job.
3. Vendor Management & Relationships
Nobody tells you this in the job description, but you’ll spend a significant amount of time managing vendor relationships. You become the face of your company to every supplier, contractor, and service provider.
What you’ll actually do:
- Onboard new vendors: collect W-9s, verify banking information, set them up in your ERP system
- Update vendor information when they change banks, addresses, or contact details
- Handle vendor inquiries about payment status, invoice discrepancies, and account issues
- Resolve disputes diplomatically (vendor says they invoiced you; your records say they didn’t—who’s right?)
- Maintain positive relationships even when you have to deliver bad news
- Identify and flag vendors who consistently submit incorrect or incomplete invoices
The reality check: You’ll get calls from angry vendors. You’ll get calls from confused vendors. You’ll get calls from vendors who just want to chat. Learning to manage these conversations professionally while getting your actual work done is an art form
4. Three-Way Matching & Exception Handling
This is one of the most critical controls in AP, and it’s where you’ll earn your stripes. Three-way matching means verifying that three documents align: the purchase order, the receiving report, and the invoice. When they don’t match, you’ve got an exception to resolve.
What you’ll actually do:
- Match POs, receiving documents, and invoices line by line
- Investigate discrepancies: wrong quantities, wrong prices, wrong items, wrong everything
- Work with purchasing and receiving departments to figure out what actually happened
- Get approval for exceptions when matches aren’t perfect
- Document why you approved a mismatch (because auditors will ask later)
- Escalate issues that require senior management input
The reality check: You’ll have vendors calling you asking where their payment is. You’ll have colleagues asking you to rush a payment because they forgot to submit the invoice on time. You’ll need to balance being helpful with protecting company policies. It’s a people job as much as it’s a numbers job.
5. Month-End Close Activities
Month-end close is when everything you’ve been doing all month gets scrutinized. It’s deadline-driven, detail-oriented, and absolutely critical for accurate financial reporting.
Month-end is when everyone suddenly remembers all the invoices they forgot to submit. You’ll work longer hours. You’ll double-check everything. And you’ll develop a love-hate relationship with the calendar when it shows Day 1 of the next month.
Month-end is when everyone suddenly remembers all the invoices they forgot to submit. You’ll work longer hours. You’ll double-check everything. And you’ll develop a love-hate relationship with the calendar when it shows Day 1 of the next month.
What you’ll actually do:
- Accrue for expenses received but not yet invoiced (using your best estimates and working with department heads)
- Reconcile AP sub-ledger to the general ledger
- Analyze AP aging reports and explain why certain invoices are outstanding
- Process last-minute invoices that absolutely must be included in this month
- Prepare AP-related journal entries
- Provide reports and analysis to accounting leadership
6. Compliance & Controls
AP is heavily regulated and controlled for good reason—it’s where companies can lose money to fraud, errors, and non-compliance(even penalties). You’re on the front lines of protecting company assets.
There will be time where you’ll be asked to bend the rules sometimes. “Can you just rush this payment without approval?” “Can we skip the PO this time?” Learning when to be flexible and when to stand firm is a skill you’ll develop quickly.
There will be time where you’ll be asked to bend the rules sometimes. “Can you just rush this payment without approval?” “Can we skip the PO this time?” Learning when to be flexible and when to stand firm is a skill you’ll develop quickly.
What you’ll actually do:
- Follow segregation of duties protocols (you can’t approve payments you processed yourself)
- Ensure 1099 compliance for contractors and service providers
- Maintain proper documentation for audits (internal and external)
- Adhere to company approval matrices and spending limits
- Watch for red flags: duplicate payments, suspicious vendors, unusual invoice patterns
- Participate in internal control testing and audits
7. Reporting & Analysis
Modern AP isn’t just transactional—it’s analytical. You’ll be expected to provide insights, not just process invoices. Believe me, this will help you a lot.
You’ll need to understand what the numbers mean, not just produce them. Why is our DPO increasing? Are we paying too early or too late? Which vendors consistently cause problems? You’ll be asked these questions, and “I just process the invoices” won’t cut it.
You’ll need to understand what the numbers mean, not just produce them. Why is our DPO increasing? Are we paying too early or too late? Which vendors consistently cause problems? You’ll be asked these questions, and “I just process the invoices” won’t cut it.
What you’ll actually do:
- Generate and analyze AP aging reports to manage outstanding payables
- Track and report on key metrics: days payable outstanding (DPO), processing time, error rates
- Identify trends in spending by vendor, department, or category
- Calculate and report on early payment discounts captured
- Provide cash flow forecasting data to finance teams
- Identify process improvement opportunities
8. System Management & Technology Adoption
AP professionals today need to be tech-savvy or keep your IT admin beside you. You’ll work with multiple systems and need to adapt as technology evolves.
Systems crash at the worst possible times. Reports don’t always match. Data doesn’t sync properly. You’ll need to be comfortable with technology but also know when something requires IT support versus when you can figure it out yourself.
Systems crash at the worst possible times. Reports don’t always match. Data doesn’t sync properly. You’ll need to be comfortable with technology but also know when something requires IT support versus when you can figure it out yourself.
What you’ll actually do:
- Master your ERP system (SAP, Oracle, NetSuite, Dynamics, QuickBooks—whatever your company uses)
- Use AP automation tools for invoice capture, workflow, and approvals
- Work with procurement systems for PO matching
- Navigate payment platforms and banking portals
- Troubleshoot system issues and work with IT when things break
Skills that are must for Accounts Payable Job
Attention to Detail: You’ll catch errors that everyone else missed. One transposed digit in a bank account number or one misplaced decimal means paying $10,000 instead of $1,000. Details matter, and they matter all day, every day. Studies indicate that manual data entry errors occur in approximately 12-15% of transactions, highlighting why meticulous attention to detail is critical in AP roles
Communication Skills(Written and Verbal): You’ll write countless emails to vendors & colleagues. You’ll explain complex issues in simple terms and being firm when enforcing policies but diplomatic enough to maintain relationships. This isn’t a “sit silently and crunch numbers” job.
Problem-Solving Under Pressure: Discrepancies, system issues, urgent payment requests, missing approvals—you’ll face problems daily. Often, there’s no playbook. You’ll need to figure it out, often quickly, and often while juggling multiple other tasks.
Time Management & Prioritization: You’ll have daily tasks, weekly tasks, monthly tasks, and surprise tasks all demanding your attention simultaneously. Learning what must be done now versus what can wait is crucial. Payment deadlines are non-negotiable, but not everything is equally urgent.
Integrity & Ethics: You have access to sensitive financial information and the ability to initiate payments. The company trusts you to do the right thing even when no one is watching. This isn’t just a nice-to-have—it’s fundamental to the role.
Communication Skills(Written and Verbal): You’ll write countless emails to vendors & colleagues. You’ll explain complex issues in simple terms and being firm when enforcing policies but diplomatic enough to maintain relationships. This isn’t a “sit silently and crunch numbers” job.
Problem-Solving Under Pressure: Discrepancies, system issues, urgent payment requests, missing approvals—you’ll face problems daily. Often, there’s no playbook. You’ll need to figure it out, often quickly, and often while juggling multiple other tasks.
Time Management & Prioritization: You’ll have daily tasks, weekly tasks, monthly tasks, and surprise tasks all demanding your attention simultaneously. Learning what must be done now versus what can wait is crucial. Payment deadlines are non-negotiable, but not everything is equally urgent.
Integrity & Ethics: You have access to sensitive financial information and the ability to initiate payments. The company trusts you to do the right thing even when no one is watching. This isn’t just a nice-to-have—it’s fundamental to the role.
Conclusion
Accounts Payable isn’t glamorous. You won’t get a lot of recognition when things go smoothly (though you’ll definitely hear about it when something goes wrong). But you will be essential. Every single day, you’ll be doing work that matters—work that keeps your company running, keeps vendors happy, and keeps the financial supply chain moving.
You’ll learn skills that transfer to countless other finance roles. You’ll develop relationships across the organization. You’ll understand business operations in a way that few other entry-level finance roles provide. And you’ll know, at the end of every payment cycle, that you did something important and you did it right.
If you’re detail-oriented, process-minded, and ready to be the person who makes sure everyone else gets what they need to do their jobs, Accounts Payable might be exactly where you belong.
You’ll learn skills that transfer to countless other finance roles. You’ll develop relationships across the organization. You’ll understand business operations in a way that few other entry-level finance roles provide. And you’ll know, at the end of every payment cycle, that you did something important and you did it right.
If you’re detail-oriented, process-minded, and ready to be the person who makes sure everyone else gets what they need to do their jobs, Accounts Payable might be exactly where you belong.
