Most professionals would agree that determining fair and competitive compensation is crucial when evaluating a career path in accounts payable management.
In this post, we will explore the key factors impacting accounts payable clerk salaries, including experience levels, certifications, company size, and industry.
You will gain data-backed insight into average pay ranges, future job growth, and how to stand out in an evolving profession undergoing automation changes.
Introduction to Accounts Payable Clerk Salaries
Accounts payable (AP) clerks are responsible for processing and paying a company's bills and invoices. Their duties typically include reviewing invoices, verifying charges, obtaining approvals, preparing checks, and reconciling accounts. As key members of the accounting team, AP clerks help ensure vendors and suppliers are paid accurately and on time.
Defining the Role of an Accounts Payable Clerk
Accounts payable clerks have an important role in the accounting department. Their primary responsibilities include:
- Reviewing invoices and bills from vendors and suppliers
- Verifying that charges on invoices match purchase orders and goods received
- Obtaining necessary internal approvals for payments
- Preparing checks or electronic payments
- Reconciling processed invoices to accounts payable records
- Resolving any discrepancies or unpaid invoices
- Filing records and documentation of payments
To succeed as an AP clerk, strong organization, attention to detail, data entry skills, and the ability to communicate effectively are essential. AP clerks often serve as the main point of contact with vendors when issues arise.
Average National and Regional Salaries
According to the U.S. Bureau of Labor Statistics (BLS), the average annual salary for accounts payable clerks nationwide is $41,790 as of May 2021. Salaries can vary significantly by region:
- Pacific region - $46,840 average
- Northeast region - $43,750
- South region - $39,970
- Midwest region - $40,250
The cost of living and labor market conditions in different parts of the country impact average pay rates for AP clerks and accounting roles in general. Major metropolitan areas typically offer higher salaries.
Salary Ranges Based on Experience Level
An accounts payable clerk's years of experience is a key factor impacting their compensation. Entry-level AP clerks can expect lower starting wages that progressively increase as they gain experience:
- 0-2 years experience - $33,000 to $39,000
- 3-5 years experience - $37,000 to $45,000
- 6-10 years experience - $41,000 to $51,000
- 10+ years experience - $47,000 to $57,000
Many companies offer annual raises for AP clerks as they improve skills and demonstrate consistent job performance. Obtaining additional accounting certifications can also boost salary potential.
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Key Factors Impacting Accounts Payable Clerk Compensation
Accounts payable (AP) clerks are responsible for processing invoices, making payments to suppliers, and managing financial records. Their compensation is influenced by several key factors.
Impact of Education and Certifications
Higher levels of education and relevant certifications can enable AP clerks to command higher salaries. While some entry-level AP roles may only require a high school diploma, having an associate's or bachelor's degree in accounting, finance, or a related field can open up better paying opportunities.
Obtaining certifications like a Certified Public Accountant (CPA) license demonstrates advanced expertise in areas like financial reporting, auditing, taxation, and managerial accounting. AP clerks with a CPA may qualify for senior level positions with compensation closer to $70,000 per year. Other certifications like Certified Accounts Payable Professional (CAPP) also signal specialized skills that warrant increased pay.
Comparing Salaries by Company Size
Larger companies with bigger accounting departments and more complex payables workflows tend to offer higher AP clerk wages. While an accounts payable coordinator at a small business may average around $38,000 annually, mid-size companies may pay $45,000, and large enterprises around $55,000 for similar roles.
The increased budget, transaction volume, and reporting needs of larger organizations necessitate strong financial acumen from AP staffers. In turn, these companies invest more in competitive compensation to attract top talent.
Higher-Paying Industries for Accounts Payable Roles
Certain industries like technology, finance, healthcare, and construction tend to pay higher AP salaries compared to other sectors. These fields deal with large capital expenditures, complex vendor relationships, and strict regulatory compliance - requiring greater expertise.
For example, a construction company AP clerk may average $41,000 yearly while a hospital AP staffer with specialized medical billing knowledge can make $51,000. Understanding industry-specific workflows commands better pay.
In summary, factors like education, credentials, company size, and industry play a major role in determining accounts payable clerk salary levels across different organizations. Candidates looking to maximize their compensation potential can focus on these key areas.
The Job Outlook for Accounts Payable Clerks
Finally, we'll assess the job growth that's projected for accounts payable clerks over the next decade to understand long-term salary and career advancement potential.
Projected Job Growth and Openings
The Bureau of Labor Statistics predicts a modest 2% growth rate for accounts payable clerk roles over the next 10 years. This translates to approximately 16,500 new job openings in the profession. While not rapid expansion, it does represent steady and continued demand.
The largest employers of accounts payable clerks are the finance and insurance industries. As these sectors grow over the next decade, driven by an aging population and rising healthcare costs, the need for qualified accounts payable staff should increase in tandem.
Impact of Automation on Job Prospects
With advancements in financial process automation, there is a possibility that routine transactional tasks currently done manually by accounts payable clerks may shift to automated systems. However, human oversight, judgment, and strategic decision making will still be required.
AP clerks who upskill into managerial, analytical, and advisory capacities should retain stable job prospects despite automation trends. Adaptability and upgrading one's skill set will be key.
Preparing for an Evolving Profession
To build a resilient career in accounts payable management, pursuing additional certifications can expand one's expertise. Relevant credentials include:
- Certified Accounts Payable Professional (CAPP)
- Certified Payables Professional (CPP)
- Certified Professional Collector (CPC)
Ongoing education in accounting, finance, data analysis, and managerial skills can also equip AP clerks to transition into supervisory roles as automation handles more routine tasks. A proactive and positive approach to change is essential.
