How Much Does An Accounts Payable Specialist Make?

An Accounts payable (AP) specialist works to ensure that all the bills and invoices of the company are processed and paid. This financial role is crucial in paying the vendors and suppliers as the proper due without any delays. But what is the pay and job satisfaction rate of an accounts payable career? Now let us consider the mean remuneration of AP specialists, more in detail.

Accounts Payable Specialist Salary

The BLS states that the average pay for accounting and auditing clerks as of the year 2020, was $42,410, which comes out to be $20.40 per hour. It is anticipated to grow at a 4% rate over the next decade (2020-2030) and is considered an average growth rate compared to other fields of work.

The salaries for AP specialists and clerks can vary substantially based on these key factors:

• Location & Cost of Living – This has been seen to influence in that the salaries usually correlate with the cost of living in the state for instance in New York or California. New York, California, and Washington are at the top of the list in average salary as represented by the BLS with $49,840, $48,580, and $47,010 respectively.

• Experience Level – new hires or those with little working experience or less than a year experience as AP clerks can expect to receive between $30,000-$35,000. After 3-5 years experience, salaries creep up to $40,000 and if one has 5+ years experience, he or she can make $45,000-$55,000+.

• some industries pay more because their balance sheets are stronger than those of the bargaining leverage. This BLS also shows that the average accounting and auditing clerk in the trucking industry earns $52,330. Other well-remunerating industries that are worth being considered include the professional services, insurance, and finance industries.

• Company Size – Generally speaking, big firms usually have larger accounting divisions as well as accounting employees earning higher wages. Thus, an AP specialist employed with a firm on the list of the 500 largest companies in the United States will likely earn more than his or her counterpart at a small business.

• Certifications – Achieving an accounting certification such as Certified Public Bookkeeper (CPB) increases one’s chances of getting paid better since the education level of finance and accounting graduates also plays a vital role in determining their salaries since a bachelor’s degree in accounting, finance, or related majors.

Accounts Payable Salary Range

Average earnings of an entry-level accounts payable specialist ranges between $30, 000 and $40, 000 per annum. After gaining a few years of experience that increases to $40000-$60000; those at the senior level and managers fall on the higher end of the scale.

Regarding wages per hour, the accounts payable associates have wages ranging from $15 to $19 an hour. The mean then raises to $18 -$ 25 per hour for specialists, while AP managers at a higher level earn $25-$35 per hour or more.

Of course, a few specialists will have an average higher or lower salaries than the ranges outlined above. Total compensation through salaries and hourly wages may vary by tasks assigned, general budget, local talent pool, the opportunity to work from home, and personal bargaining power.

top industries that paid the most to AP Specialists

As I have mentioned above, some industries just offer better-paying salaries for accounting positions. Based on BLS salary data, accounts payable jobs in the following 5 industries tend to be the most lucrative on average nationwide:

1. Investment Banking & Finance -$54,080
2. Technology & Information, $52,040
3. Accounting Firms - $51,490
4. Insurance - $48,500
5. Energy Companies (Gas & Oil) - 47490

Other big organizations such as JPMorgan Chase, Deloitte, Liberty Mutual, Oracle, and Chevron offer high salaries for effective AP and accounting professionals. The wide location factor means that more corporate positions also come with higher wages, particularly those in headquarters, large cities, and major financial locations. Those seeking to work for AP contract jobs also have the opportunity to earn more than $60 per hour.

Employment Trends for Persons Involved in Accounts Payable

According to the Bureau of Labor Statistics, job openings for AP specialists and accounting clerks are expected to rise by 4% until 2030. Although job creation has been moderate compared to other careers, more than 95,300 new jobs are expected in total to fill up vacancies left by exiting employees in that decade, giving a green light to a healthy job market.

Moreover, the evolving and increasingly digitalized landscape marked by the rise of e-payments and process automation is altering the accounts of the accounts payable associates. More organizations are seeking AP specialists with higher levels of software expertise to improve the handling of approvals and overall adoption of ePayables. This increasing need for ‘smart’ AP clerks suggests promising prospects for skilled applicants. In some occasions, physical movement is inevitable when it comes to the most remunerative corporate AP positions.

Developing a Desirable Set of Proficiency in AP

For aspiring accounts payable pros looking to open up additional high-paying job opportunities over their career, developing expertise in the following areas can certainly boost earning potential over time:

- A selection of accounts payable software including the giants of SAP Ariba a, Oracle NetSuite, and Bill.com
- Expertise in the knowledge of ERP systems and skills in the development of reporting dashboards
- SQL, Python, and other programming languages to manage the organizational AP data
- Automated process mapping skills Connecticut University Every process improvement and automation mapping skills.
- Six Sigma or Lean accounting methodologies are some examples.
- Advanced procedures for issuing an invoice, cross-border payments, and foreign exchange.

Another way of expanding the circle of employers is also the choice of a degree: a bachelor’s degree in accounting, finance, or business management. Otherwise, it is recommended that the accounting students still in class perform volunteer accounting work at a nonprofit or take an AP internship.

In the long run, one could receive an MBA or a particular AP certificate from a college or university to enhance salary potential even further too. However, experience in AP, especially that which is practical, is the most important factor in achieving higher pay at most organizations.

Prospects in the Accounts Payable Field

Although it may not boast as glamorous a title as investment banking or corporate law, accounts payable has a strong combination of factors including wide job availability, decent and often growing wages, constant recruiting, and a stable, long-term career with little risk of outsourcing in most companies and industries.

While the professional opportunities for AP specialists are constantly opening up, the field retains high demand and competitive remuneration rates, making it a prosperous profession no matter the economic climate, spurred by the gradual integration of technologies such as ePayables and other advanced solutions. Thus, with mastering the latest tools for AP software and such possibilities as financial reporting, one can obtain a six-figure salary in the future.