WHAT IS AN ap/ar bookkeeper job
An AP/AR bookkeeper job is a specialized position in the field of accounting and finance. AP stands for accounts payable, which refers to the process of managing and recording a company's outgoing payments to vendors and suppliers. AR, on the other hand, stands for accounts receivable, which involves tracking and recording incoming payments from customers. In essence, an AP/AR bookkeeper is responsible for maintaining accurate financial records related to both the company's payables and receivables.
WHAT DO THEY USUALLY DO IN THIS POSITION
In this position, AP/AR bookkeepers perform a variety of tasks to ensure the smooth operation of a company's financial transactions. These tasks may include:
1. Processing invoices: AP/AR bookkeepers review and process invoices received from vendors, ensuring accuracy and completeness. They verify the details of each invoice, such as the amount, payment terms, and billing address.
2. Managing accounts payable: They maintain and update the accounts payable ledger, which involves recording all outgoing payments, tracking due dates, and ensuring timely payments to vendors. This includes issuing checks or initiating electronic fund transfers.
3. Tracking accounts receivable: AP/AR bookkeepers monitor and reconcile customer accounts, ensuring that payments are received on time. They follow up on outstanding invoices, send reminders to customers, and resolve any payment discrepancies or disputes.
4. Generating financial reports: They prepare regular financial reports, such as balance sheets, income statements, and cash flow statements. These reports provide a snapshot of the company's financial health and help in making informed business decisions.
5. Assisting with audits: AP/AR bookkeepers may collaborate with auditors during the financial audit process. They provide necessary documentation, reconcile accounts, and ensure compliance with accounting standards and regulations.
TOP 5 SKILLS FOR THIS POSITION
To excel in an AP/AR bookkeeper role, certain skills are crucial. Here are the top five skills that are highly desirable for this position:
1. Attention to detail: AP/AR bookkeepers must have a keen eye for detail to accurately process invoices, reconcile accounts, and detect any discrepancies or errors in financial records.
2. Organizational skills: Given the volume of transactions and paperwork involved, strong organizational skills are essential. AP/AR bookkeepers should be able to prioritize tasks, manage deadlines, and maintain well-organized financial records.
3. Analytical skills: They need to possess analytical skills to interpret financial data, identify trends, and generate meaningful reports. This helps in providing insights to management and supporting strategic decision-making.
4. Communication skills: Effective communication is crucial as AP/AR bookkeepers often interact with vendors, customers, and colleagues. They need to communicate clearly and professionally, both verbally and in writing.
5. Technological proficiency: Proficiency in accounting software and other relevant tools is important. AP/AR bookkeepers should be comfortable working with spreadsheets, databases, and financial management software to streamline processes and improve efficiency.
HOW TO BECOME AN AP/AR BOOKKEEPING SPECIALIST
To become an AP/AR bookkeeping specialist, certain steps can be followed:
1. Obtain relevant education: While a formal education is not always a requirement, a degree or diploma in accounting, finance, or a related field can provide a solid foundation. Courses in bookkeeping, financial management, and accounting principles are beneficial.
2. Gain practical experience: Acquiring hands-on experience through internships or entry-level positions can help develop the necessary skills. Working under the guidance of experienced professionals provides valuable insights into the field and enhances job prospects.
3. Develop technical skills: Familiarize yourself with popular accounting software, such as QuickBooks or Xero, to effectively manage financial records. Stay updated with advancements in technology and industry-specific tools.
4. Pursue professional certifications: Although not mandatory, obtaining certifications like Certified Bookkeeper (CB) or Certified Public Accountant (CPA) can enhance credibility and open up more job opportunities.
5. Continuously learn and adapt: The field of finance and accounting is ever-evolving. Stay updated with industry trends, regulations, and best practices. Attend workshops, webinars, or seminars to expand your knowledge and skills.
AVERAGE SALARY
The average salary for AP/AR bookkeepers can vary depending on factors such as experience, location, and the size of the company. According to the U.S. Bureau of Labor Statistics, as of May 2020, the median annual wage for bookkeeping, accounting, and auditing clerks was $42,410. However, it is important to note that salaries can range from around $30,000 to over $60,000 per year.
ROLES AND TYPES
AP/AR bookkeepers can work in various industries and organizations, including small businesses, corporations, non-profit organizations, and government agencies. They may hold positions such as:
1. Staff Bookkeeper: In smaller organizations, AP/AR bookkeepers may handle all aspects of bookkeeping, from processing invoices to generating financial reports.
2. Accounts Payable Clerk: Some AP/AR bookkeepers specialize in managing accounts payable functions, focusing primarily on processing and recording outgoing payments.
3. Accounts Receivable Clerk: Similarly, others may specialize in accounts receivable, concentrating on tracking and recording incoming payments from customers.
4. Payroll Clerk: In some cases, AP/AR bookkeepers may also handle payroll-related tasks, ensuring accurate and timely payment of employee salaries and benefits.
LOCATIONS WITH THE MOST POPULAR JOBS IN THE USA
AP/AR bookkeeping jobs can be found throughout the United States, with certain locations offering more opportunities than others. Some of the cities known for having a high demand for AP/AR bookkeepers include:
1. New York City, NY
2. Los Angeles, CA
3. Chicago, IL
4. Houston, TX
5. Atlanta, GA
These cities are major business hubs and have a thriving economy, which contributes to the availability of AP/AR bookkeeping positions.
WHAT ARE THE TYPICAL TOOLS
AP/AR bookkeepers rely on various tools and software to perform their job effectively. Some of the typical tools used in this role include:
1. Accounting software: Popular accounting software programs like QuickBooks, Xero, or Sage are commonly used to manage financial records, process invoices, and generate reports.
2. Spreadsheets: Tools like Microsoft Excel or Google Sheets are utilized for organizing and analyzing financial data, creating budgets, and tracking expenses.
3. Document management systems: AP/AR bookkeepers often work with a large volume of invoices, receipts, and other financial documents. Document management systems help in organizing and storing these documents digitally, ensuring easy retrieval and reducing paperwork.
4. Electronic payment systems: Online payment platforms, such as PayPal or Stripe, are used for processing electronic payments, facilitating accounts receivable functions.
5. Communication tools: Email clients, video conferencing software, and collaboration platforms are essential for effective communication with vendors, customers, and colleagues.
IN CONCLUSION
AP/AR bookkeeping is a critical role in maintaining accurate financial records and ensuring smooth financial transactions for businesses. It requires a combination of technical skills, attention to detail, and strong organizational abilities. With the right education, experience, and continuous learning, individuals can pursue a successful career in AP/AR bookkeeping, contributing to the financial stability and success of organizations across various industries.