Preparing for Accounts Payable interview questions but don't know where to start?
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In this article, we look at 10+ crucial questions that will prepare you to face accounts payable interviews with tips and a list of red flags that will help you steer clear of a bad career opportunity and land your dream job.
Accounts Payable Interview Questions
Let's take a closer look at crucial interview questions
How would you define accounts payable?
Accounts payable involves recording and paying for goods and services that a company has purchased on credit.
It is one of the most important functions in the accounting department, as it ensures that the company pays its vendors on time and maintains a good credit rating.
As an accounts payable clerk, what is your scope of responsibilities?
The responsibilities of an accounts payable clerk vary depending on the size and structure of the company, but some common tasks include:
- Receiving and processing invoices from vendors
- Matching invoices to purchase orders and receipts
- Approving invoices for payment
- Making payments to vendors
- Reconciling accounts payable balances
- Maintaining vendor relationships
What is the difference between a PO invoice and a non-PO invoice?
The main difference between a PO invoice and a non-PO invoice is that a PO invoice is generated for goods or services that have been purchased on a purchase order, while a non-PO invoice is generated for goods or services that have been purchased without a purchase order.
Purchase orders are used to create a formal agreement between a buyer and a seller for the purchase of goods or services.
They typically include information such as the purchase order number, the date of the order, the items being ordered, the quantity, the price, and the delivery date.
Once the seller has fulfilled the purchase order, they will send an invoice to the buyer for payment.
The invoice will include the purchase order number, as well as other information such as the invoice number, the date of the invoice, the items being invoiced, the quantity, the price, and the total amount due.
Non-PO invoices are typically used for smaller purchases or for goods or services that are needed immediately or on an emergency basis.
For example, a company might use a non-PO invoice to purchase office supplies or to pay for a repair to a piece of equipment.
Here are some examples of PO invoices:
- An invoice for a new computer that was ordered using a purchase order
- An invoice for a shipment of raw materials that was ordered using a purchase order.
- An invoice for a consulting service that was ordered using a purchase order.
Here are some examples of non-PO invoices:
- An invoice for a box of pens that was purchased from a local office supply store.
- An invoice for a repair to a broken printer.
- An invoice for a meal that was purchased while on a business trip.
Can you explain the three-way match process in Accounts Payable?
Sure! The three-way match process in Accounts Payable is a method of verifying the accuracy of an invoice before it is paid.
It involves comparing the invoice to the purchase order and the receiving report to ensure that the following information matches:
- Quantity
- Price
- Description
- Vendor
If all of the information matches, then the invoice is considered to be valid and can be approved for payment.
If there are any discrepancies, then the invoice must be investigated and resolved before it can be paid.
The three-way match process is an important internal control that helps to prevent fraud and ensure that the company is only paying for goods and services that it has actually received.
How do you handle discrepancies between purchase orders, invoices, and receipts?
If there is a discrepancy between the purchase order, invoice, and receipt, I will first try to identify the source of the discrepancy.
Once I have identified the source of the discrepancy, I will work with the vendor to resolve the issue.
If the discrepancy is minor, such as a typo in the quantity or price, I may be able to approve the invoice for payment after the vendor has corrected the discrepancy.
However, if the discrepancy is more significant, such as a discrepancy in the description of the goods or services, I will need to obtain approval from a manager before approving the invoice for payment.
I will also document the discrepancy and the steps that I took to resolve it in the accounts payable system.
This will help to ensure that the discrepancy is not overlooked and that it does not happen again in the future.
How would you describe the accounts payable process from start to finish?
I think this is what the accounts payable process looks like:
Receive and process invoices from vendors. This may involve manually entering invoice data into an accounting system or using an automated invoice processing system.
Match invoices to purchase orders and receipts. This is done to ensure that the goods or services have been received and that the invoice is accurate.
Approve invoices for payment. This may be done by a single person or by multiple people, depending on the company's approval process.
Make payments to vendors. This may be done by check, wire transfer, or electronic funds transfer.
Reconcile accounts payable balances. This involves comparing the accounting records to the bank statements to ensure that all invoices have been paid.
Maintain vendor relationships. This may involve communicating with vendors about their invoices and payments, and resolving any issues that arise.
How do you handle discrepancies between purchase orders, invoices, and receipts?
If there is a discrepancy between a purchase order, an invoice, and a receipt, I will first try to identify the source of the discrepancy.
Once I have identified the source, I will work to resolve the issue as quickly as possible.
This may involve contacting the vendor to get more information or to request a corrected invoice.
In some cases, the discrepancy may be due to a simple mistake, such as a typo or a miscalculation.
In these cases, I will work with the vendor to correct the mistake and get an updated invoice.
In other cases, the discrepancy may be due to a more serious problem, such as a damaged shipment or a service that was not performed as expected.
In these cases, I will work with the vendor to resolve the issue and to get a refund or credit.
What are some common accounts payable errors and how do you prevent them?
Some common accounts payable errors include:
- Entering incorrect invoice data
- Failing to match invoices to purchase orders and receipts
- Approving invoices for payment that have not been authorized
- Making payments to the wrong vendors
- Failing to reconcile accounts payable balances
To prevent these errors, it is important to have a well-defined accounts payable process and to follow it carefully.
It is also important to train accounts payable clerks on proper procedures and to regularly review the accounts payable process for any areas of improvement.
I prevent them by:
- Using an automated invoice processing system to reduce the risk of human error in entering invoice data.
- Implementing a three-way match process to ensure that invoices are matched to purchase orders and receipts before they are approved for payment.
- Recording all invoices to be approved by a designated person before they are paid.
- Using a payment processing system that allows you to verify vendor bank account information before making payments.
- Reconciling accounts payable balances on a regular basis to identify any errors.
Can you elaborate on your experience with accounting software programs?
I have experience with a variety of accounting software programs, including QuickBooks Online, Xero, and Sage Intacct.
I am also familiar with a number of accounts payable automation software programs, such as Tipalti and Yooz.
In my previous role at [company name], I used QuickBooks Online to manage the accounts payable process for a small business.
I was responsible for receiving and processing invoices, matching invoices to purchase orders and receipts, approving invoices for payment, and making payments to vendors.
I also used QuickBooks Online to generate reports on accounts payable activity.
I am confident that my experience with accounting software programs will allow me to quickly learn your company's accounting system and begin contributing to your team immediately.
What are some accounts payable best practices?
Some accounts payable best practices are:
- Implement a three-way match process to ensure that all invoices are accurate and have been approved before they are paid.
- Automate as much of the accounts payable process as possible to improve efficiency and reduce errors.
- Establish clear and concise accounts payable procedures and communicate them to all employees involved in the process.
- Regularly reconcile accounts payable balances to ensure that they are accurate and up-to-date.
- Maintain good relationships with vendors and communicate with them regularly about payment schedules and any outstanding issues.
- By following these best practices, companies can ensure that their accounts payable process is efficient, accurate, and compliant with all applicable regulations.
Tell me about a time when you had to go above and beyond to meet a deadline
At my previous job, we had a crucial vendor that was due to be paid a significant amount of money on a specific date.
However, the vendor sent us the invoice very late, and we only had a few days to process it and make the payment.
I knew that if we didn't make the payment on time, we would be penalized by the vendor, and this could damage our relationship with them. So, I made it a priority to process the invoice as quickly as possible.
I stayed late at work every night for three days to review the invoice, match it to the purchase order and receipt, and get it approved for payment.
I also worked with the vendor to resolve a few discrepancies on the invoice.
In the end, I was able to get the invoice processed and the payment made to the vendor on time. This saved the company money and preserved our relationship with the vendor.
Describe a time when you had to deal with a difficult vendor. How did you handle the situation?
At my previous job, I had to deal with a vendor who was very demanding and often unreasonable.
They would frequently call me and complain about the payment process, even though we were always paying them on time.
I tried to be patient and understanding with the vendor, but they eventually became so difficult to deal with that I had to escalate the issue to my manager.
My manager spoke to the vendor's manager, and they were able to resolve the issue.
I learned from this experience that it is important to be assertive when dealing with difficult vendors.
It is also important to have a backup plan in case you need to escalate the issue to your manager.
Tell me about a time when you made a mistake and please share how fixed it.
I think one of the blunders I have made was when I just started out. I had been working at my job for 6 months and I accidentally made a duplicate payment to a vendor.
I realized my mistake a few days later and immediately contacted the vendor.
The vendor was very understanding and was able to refund the duplicate payment.
I learned from this experience that it is important to be careful and double-check my work before making any payments.
I also learned that it is important to be honest and upfront with vendors if I make a mistake. I have since implemented a number of safeguards to prevent me from making similar mistakes in the future.
As a precaution, I always double-check my work before making any payments, and I have also set up a system to track all of the payments that I make.
I am confident that I have learned from my mistake and that I am now a more careful and accurate accounts payable professional.
How do you stay organized and manage your time effectively in accounts payable?
I stay organized and manage my time effectively in accounts payable by following these best practices:
Prioritize my tasks. I start each day by reviewing all of the invoices and payments that need to be processed. I then prioritize the tasks based on their due date and importance.
Use a to-do list or project management tool. I use a to-do list or project management tool to keep track of all of my tasks and deadlines. This helps me to stay on top of everything and avoid missing any important due dates.
Set realistic deadlines. I set realistic deadlines for myself and break down large tasks into smaller, more manageable pieces. This helps me to avoid feeling overwhelmed and to stay on track.
Take breaks. It is important to take breaks throughout the day to avoid burnout. I get up and move around every hour or so, and I take a longer break for lunch.
Delegate tasks. If possible, I delegate tasks to other members of the team. This frees up my time so that I can focus on the most important tasks.
Here are some additional tips that I have found to be helpful:
Process invoices as soon as possible. The longer you wait to process invoices, the more likely you are to make mistakes or miss deadlines.
Use automation tools. There are a number of automation tools available that can help you to streamline the accounts payable process. For example, you can use an automation tool to scan invoices electronically and match them to purchase orders.
Communicate with your vendors. If you have any questions about an invoice or if there is a problem with a payment, be sure to communicate with your vendor as soon as possible.
How do you handle working under pressure?
I try to stay calm and focused on the task at hand. I also prioritize my tasks and break down large tasks into smaller, more manageable pieces.
This helps me to stay on track and avoid feeling overwhelmed. I am good at adapting so wokring independently or in a team both come easily to me.
Here are some specific examples of how I have handled working under pressure in the past:
In my previous job, I was responsible for processing a large volume of invoices at the end of each month.
I was able to meet all of the deadlines by prioritizing my tasks and working overtime when necessary.
I was also responsible for handling vendor inquiries. I was able to resolve all of the inquiries promptly and professionally, even when I was under a lot of pressure.
I am confident that I can handle the pressure of this role and that I can meet all of your expectations.
Tips to Answer Accounts Payable Interview Questions
Talk about how you can help the company save money
Accounts payable is a critical function for any business, and companies are always looking for ways to reduce costs.
Be prepared to discuss how you can help the company save money by streamlining the accounts payable process, negotiating better payment terms with vendors, and identifying and preventing fraud.
Demonstrate your knowledge of automation tools and technologies.
Automation is playing an increasingly important role in the accounts payable profession.
Be prepared to discuss your experience with automation tools and technologies, and how you have used them to improve the efficiency and accuracy of the accounts payable process.
Articulate understanding of the company's needs and challenges
Before your interview, take some time to research the company and learn about its industry and business
Discuss your experience with the accounts payable process in detail
This includes being able to explain the different steps involved, as well as any challenges you have faced and how you have overcome them.
Explain the types of accounts payable transactions
This includes purchase orders, invoices, receipts, and payments.
Be familiar with the different accounting software programs that are used for accounts payable
This includes being able to explain how to use the software to process invoices, make payments, and reconcile accounts.
Red flags to watch out for in an accounts payable interview
Here is a more elaborate explanation of the red flags to watch out for in an accounts payable interview:
The interviewer is not a professional
This could include things like showing up late for the interview, dressing unprofessionally, or being rude or dismissive.
If the interviewer is not professional, it is a sign that they may not take the job or the company seriously.
The interviewer does not ask you any specific questions about accounts payable
If the interviewer does not ask you any specific questions about accounts payable, it could be a sign that they are not familiar with the role or that they are not looking for someone with a strong understanding of accounts payable.
The interviewer does not explain the job requirements in detail
If the interviewer does not explain the job requirements in detail, it could be a sign that they are not sure what they are looking for in a candidate or that they are not organized.
The interviewer does not tell you about the company culture
If the interviewer does not tell you about the company culture, it could be a sign that they are not proud of the company culture or that they do not think it is a good fit for you.
The interviewer offers you the job on the spot without asking you any questions
If the interviewer offers you the job on the spot without asking you any questions, it could be a sign that they are desperate to fill the role or that they are not hiring for the right reasons.
If you encounter any of these red flags in an accounts payable interview, it is important to be cautious. It may be a sign that the company is not a good fit for you.
Here are some additional red flags to watch out for:
- The interviewer is vague about the salary or benefits.
- The interviewer asks you to do something unethical, such as lying to a vendor or falsifying records.
- The interviewer makes inappropriate comments or jokes.
- The interviewer pressures you to accept the job offer immediately.
If you experience any of these red flags, it is best to end the interview and look for other opportunities.
It is important to remember that you are interviewing the company as much as they are interviewing you.
So make sure you are comfortable asking questions and getting a good sense of the company culture before you accept a job offer.
All the best!
