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Accounts Payable and Receivable

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For any business to stay operational a healthy cash flow is needed. Finance teams are responsible for maintaining good relations with suppliers, ensuring they’re paid in a timely manner and making sure money is received on time.  In accounts payable, you will process invoices, raise purchase orders, if the company has a purchase order policy, and process employees’ expense claims. In accounts receivable, you will collect and record payments, in line with company credit procedures.  You will check payment terms and ensure that contracts have been fulfilled, liaising with the pricing and procurement teams to verify information. It’s a careful balancing act, assessing your organisation’s income to ensure the money is ‘in the bank’ to cover outgoings.  Other aspects could include reconciling accounts, preparing management statements and reports, or filing VAT and tax returns. Many people utilise this valuable business insight combined with professional qualifications to progress to Chartered Accountant status.

Salary

Entry level positions, such as administrative or assistant roles, start at approximately £14,000 per annum. With the right experience, qualifications and skills you could progress to management roles and earn in excess of £50,000 per annum. This does not include potential bonuses and additional benefits.  Salaries will vary considerably based on location and employer.

  • Processing and coding invoices, credit notes and receipts 
  • Ensuring there is a clear record of financial transactions (income and expenditure) in accordance with organisational and tax authority requirements
  • Responding to queries from customers and chasing outstanding payments
  • Checking and verifying bank transactions
  • Preparing ledger balances, control accounts and statements, reconciling all the figures
  • Drafting trial balances and financial statements
  • Identifying and correcting or referring any errors or accounting discrepancies
  • Preparing final accounts
  • Providing cost and revenue information in the required formats to the relevant people
  • Gathering, analysing and reporting information about income and expenditure to support decision making and management planning
  • Drafting budgets and preparing forecasts of income and expenditure
  • Delivering reliable administrative accounting support and customer service
  • Computer literate and good numerical skills
  • Excellent telephone manner and communication skills, with a strong customer service ethic
  • Attention to detail  and a methodical approach to record keeping and reporting
  • Confidence in handling potential conflict situations
  • Tact and discretion when handling confidential information
  • Organised and good at solving problems
  • Able to work to deadlines and under pressure
  • Work well in a team setting

A new entrant will not always be required to have this knowledge. Employers usually provide training to acquire skills for:

  • Methods and procedures for collecting monies and for processing account documentation
  • Accounting administrative software systems, most commonly Sage, SAP and Oracle
  • How to maintain your organisation’s accounting ledger systems
  • Relevant aspects of your organisation’s credit terms
  • Legislation and regulation of financial accounts being administered, including the statutory form of financial statements and disclosure requirements
  • How to converse with and handle customer questions

Working in accounts payable and receivable requires an understanding of numbers and the ability to communicate with customers verbally and in a written format, so English and maths are important. General office administrative, retail banking, bookkeeping or billing experience can be a good route in.

In order to gain an entry level position, employers will look for people who have:

  • GCSEs, Scottish Standard Grades or equivalent qualifications such as  Business, Administration and Finance (BAF) Diploma, BTEC First, Welsh Baccalaureate (BAC) Foundation and Intermediate Diploma, and Scottish National Qualifications at Intermediate 2 (SCQF Level 5)

Apprenticeships can be a useful way to gain entry and to progress on in the profession:

  • Level 2 Apprenticeship in Accounting (England, Wales, Scotland and Northern Ireland
  • Level 3 Apprenticeship in Accounting (England, Wales, Scotland and Northern Ireland)
  • Level 4 Apprenticeship in Accounting (England, Scotland and Wales)

There’s a wide selection of professional qualifications available, ranging, from basic introductory qualifications right up to degree level.  Attaining a Level 4 qualification / Certified Accounting Technician professional status would enable you to produce financial reports and assist accountants with internal audits. This may lead to qualifying as a Chartered Accountant.  All the chartered accountancy bodies offer fast track routes and exemptions to AAT and CAT qualified students.

  • Association of Accounting Technicians (AAT) Levels 1, 2, 3 and 4 in Accounting  
  • Association of Chartered Certified Accountants (ACCA) Foundations in Accounting (FIA) qualification (Levels 2, 3 and 4). Students who have achieved the FIA qualification, either before or after entry to accounting work, must have one year's relevant practical experience in the workplace to achieve full FIA status.
  • City & Guilds Levels 1, 2 and 3 in Accounting, Bookkeeping and Accounts or Business Finance
  • Edexcel Level 2 Certificate and Level 3 Diploma in Accounting 
  • International Association of Bookkeepers (IAB) Level 3 Diploma in Accounting and Advanced Bookkeeping or in Cost and Management Accounting
  • OCR Level 1 Awards and Level 2 Awards and Certificate in Bookkeeping and Accounting
  • ICAEW (Institute of Chartered Accountants in England and Wales) Certificate in Finance, Accounting and Business (CFAB)
  • International Association of Bookkeepers Level 4 Diploma in Financial Information for Managers
  • IAB Level 4 Diploma in Financial Management
  • Institute of Credit Management (ICM) Level 5 Diploma in Credit Management
  • Institute of Financial Accountants (IFA) 
  • Association of International Accountants (AIA)

Opportunities exist in any firm offering services, products or business supplies, including the largest multinational to small, local companies. These could include commercial and industrial companies, central and local government teams, local authorities, the NHS, educational establishments, utility companies, retailers, hotels and charitable and voluntary organisations. Opportunities are nationwide. Some organisations may have small teams, where duties will be quite varied, possibly extending to credit management. Large administrative and operational centres may have administrative, technician and professional roles.  Once AAT, CFAB or FIA qualified it may be possible for you to work abroad, as both qualifications are recognised internationally. In more senior position, firms with international reach offer more global promotional opportunities.