Learning about accounts can be fascinating, but when it comes to interviews about accounts payable (A/P), it might be challenging. To make it easier to prepare for your interview, we have compiled a list of the most commonly asked top 60 accounts payable interview questions and answers.
Going through these A/P interview questions can boost your confidence and increase your chances of performing well in the interview. The questions cover accounting interview questions, accounts payable processor, and accounts payable specialist questions.
List of Commonly Asked Accounting Payable Interview Questions
1. What is meant by accounts payable?
Answer: For these accounts payable interview questions you could answer that the accounts payable means the amount that should be paid as a liability. It is paid to the vendors for goods and services that were purchased in the past on credit. Accounts payable will be entered in the balance sheet of the respective financial year that starts from 1st April this year to 31st March of next year.
2. When is the payable amount paid?
Answer: The payable amount will be paid in the next month or next year and the amount of account payable will be entered in the balance sheet of that particular financial year.
3. What is the full form of WCC?
Answer: WCC in the expanded form is Winter Compensation from Contributions.
4. What is the difference between payable and receivable?
Answer: This is a frequently asked accounts payable interview question, you could answer by saying; that accounts subject payable is taken as loss/ liability to the firm as it is the payment the firm has to make for the goods or services taken in the past on credit.
Receivable means an amount given to someone by the firm on credit that income has been given to us now (in the future). Accounts payable comes on the assets side of the balance sheet and accounts payable can be seen on the liability side of the balance sheet.
5. Who is the consignor and What is its relation with the consignee?
Answer: The consignor is the owner of goods and he is the one who delivers the goods to the consignee is the one who receives the goods and is not the owner but the one who possesses the goods.
6. What are the total expenses borne by a seller in the journey of purchasing to delivering the product?
Answer: Expenses borne by the seller from the journey of purchasing a product to delivering the product are: advertising expenses, storage expenses, maintenance expenses, and carriage expenses. These all expenses are paid by the seller of a product.
7. What are the different types of accounting?
Answer: The types of accounting I am aware of are:
- Administrative Accounting
- Tax accounting
- Management Accounting
- Cost accounting
- Financial Accounting
These are the basic accounting done in our day-to-day lives.
8. What is an invoice and why is it important to have an invoice number?
Answer: An invoice is a document sent by a seller to the buyer that shows the quantities and costs of the products or services provided. An invoice specifies how much a buyer must pay the seller based on the seller’s payment terms. An invoice is a statement that has the following things involved in it:
- Date of the invoice
- Invoice number given
- Name and address of the person who is making the invoice (the seller)
- Name and address of the person who is demanding the invoice (the buyer)
- Details about all the goods and services that are involved
- Amount of the goods and services
- Quantity and quality of the goods and services
- Other specifications
9. What is the process done by accounts payable?
Answer: Accounts payable are responsible for the goods and services given by the suppliers and vendors by the company. They handle incoming bills and invoices; however, they also have other additional functions depending on the size and nature of the business.
10. What is the work of accounts receivable?
Answer: Accounts receivable handles the entire incoming amount given by the buyers to the firm in the exchange of goods and services taken in credit.
After the accounts payable interview questions, now let’s take a look at questions related to the accounts payable processor.
11. Who is an account payable processor?
Answer: The accounts payable processor in a company is the one who reports to the accounts payable manager and he is the one responsible for carrying out the prompt and handling process of checks and giving refund requests.
12. What is the work done by the accounts payable processor?
Answer: An accounting payable processor gives payment to all third parties and the employees, scheduling and preparing cheques in the name of the firm.
13. How can a person handle an accounts payable process?
Answer: This is an important accounts payable interview question, to manage the account payable process a person needs to follow the steps given below :
- The person should centralise the invoice payment
- They should track every due payment
- The information regarding authorised payment should be known.
14. What is meant by a PO invoice?
Answer: A PO invoice is given when a purchase requisition process is in place and the PO is sent to the supplier.
15. What is the meaning of Non- PO invoice?
Answer: Non – PO invoice is given in the case of purchases made outside the regulated purchases process, Non- PO is also called an expense invoice.
16. What is the 3-way matching for accounts payable?
Answer: This is a frequently asked accounts payable interview question you could answer by saying; that comparing the purchase order is called a three-way order. In a three-way order, the goods receipt note and the supplier’s invoice are compared and matched to know if the income is to be paid partly or the entire amount should be paid at once.
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17. What is meant by the P2P cycle?
Answer: P2P in expanded form can be explained as purchase to pay or procure to pay. It is the process of purchasing, receiving, paying for, and accounting for goods and services. It covers the entire process from the point of order to the payment.
18. How can you explain accounts payable invoice processing?
Answer: For this accounts payable interview question you could say; that vendors send invoices directly to the account payable. After the submission of accounts payable, the AP should match the invoice with an open and post the purchase order.
19. What is the full form of GRN?
Answer: The full form of GRN is called Goods received a note.
20. What is the GL code payable?
Answer: GL code means general leader code that provides a general overview of organisational transactions.
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21. What is the work done by an accounts payable specialist?
Answer: An accounts payable specialist ensures that the payment of a company’s bills and invoices are done properly and there is no fraud.
22. What is the minor difference between accounts payable and accounts payable specialists?
Answer: Accounts payable is the one doing all the basic transactions that have been due by the firm as credit. The accounts payable specialist goes through all the financial records.
23. What are the skills that should be present in accounts payable specialists?
Answer: For this accounts payable interview question you could answer; the skills of an accounts payable specialist:
- Organising, attention to detail
- Giving accuracy
- Loyalty to the firm
- Confidentiality
24. What are the qualifications of an accounts payable specialist?
Answer:
| Qualifications | Description |
| Education | High school diploma or equivalent; associate’s or bachelor’s degree in accounting, finance, or related field preferred. |
| Experience | 1-3 years of previous experience in accounts payable or a similar finance-related role. |
| Knowledge of Accounting Principles | Understanding of basic accounting principles including debits and credits, accrual accounting, and financial statement analysis. |
| Proficiency with Accounting Software | Experience using accounting software such as QuickBooks, SAP, Oracle, etc., as well as proficiency in Microsoft Excel for data entry and analysis. |
| Attention to Detail | Ability to maintain accuracy in processing payments and financial records despite dealing with large volumes of transactions and invoices. |
| Organisational Skills | Strong organisational skills to effectively manage multiple tasks, prioritise workload, and meet deadlines in a fast-paced environment. |
| Communication Skills | Strong written and verbal communication skills for interacting with vendors, colleagues, and stakeholders regarding payment inquiries and financial matters. |
| Analytical Skills | Ability to analyse invoices, identify discrepancies, and resolve payment issues efficiently. |
| Problem-Solving Abilities | Aptitude for troubleshooting problems such as missing invoices, billing errors, or payment discrepancies to find effective solutions. |
| Integrity and Professionalism | A High level of integrity, honesty, and professionalism is required for handling sensitive financial information and company funds. |
25. What is the role of verification in the accounts payable specialist job?
Answer: verification is the basis of accounts payable specialists and it requires attention and concentration to verify and check all the files, again and again, to make sure that the dues are paid on time.
26. What are the accounts payable full cycles?
Answer: the full cycle of accounts payable involves invoice data capture, and coding invoices with the correct account and cost center.
27. Why are accounts payable not treated as an expense?
Answer: This is an important accounts payable interview question, accounts payable is not treated as an expense as it is a short-term debt which is a due for the firm that is taken while purchasing a good or rendering service in the past.
28. Full form of SOX in accounts.
Answer: SOX means Sarbanes Oxley Act
29. What are the types of assets?
Answer: Two types of assets are; fixed assets and current assets.
30. What is the accounting name of receivable and payable?
Answer: The accounting name of the receivable is “debit” and the payable is “credit”.
Top Accounts Payable Technical Interview Questions
Here are commonly asked technical interview questions that will help you land a position in the accounts payable department.
31. Describe the difference between a company’s billing and non-billable expenses.
Answer: Billing expenses are charges for services or products provided to customers, while non-billable expenses are costs incurred by a company that cannot be directly passed on to customers.
32. How do you calculate liabilities on a financial statement?
Answer: Liabilities on a financial statement are calculated by summing up all debts and obligations owed by a company, including loans, accounts payable, and accrued expenses.
33. Name all components of an invoice.
Answer: Components of an invoice include the sender’s and recipient’s details, an itemised list of products or services provided, quantities, prices, payment terms, and invoice number.
34. What are the types of assets in a company?
Answer: Types of assets in a company include tangible assets (such as machinery and equipment) and intangible assets (such as patents and trademarks) that provide future economic benefits.
35. How do you ensure accuracy in processing invoices and payments?
Answer: Accuracy in processing invoices and payments is ensured through thorough verification of details, reconciliation with purchase orders and receipts, and adherence to company policies and procedures.
36. Can you explain the three-way match process in Accounts Payable?
Answer: Certainly. The three-way match process in Accounts Payable involves comparing the purchase order, and invoice, and receiving a report to ensure that the quantities, prices, and terms match before processing payment.
37. How do you handle discrepancies between purchase orders, invoices, and receipts?
Answer: Discrepancies between purchase orders, invoices, and receipts are addressed by investigating the source of the discrepancy, communicating with relevant parties, and resolving the issue promptly to ensure accurate processing.
38. Describe the accounts payable process from start to finish.
Answer: The accounts payable process begins with invoice receipt, followed by verification, approval, payment processing, and reconciliation. It ends with maintaining records and vendor relationships for future transactions.
39. How do you handle vendor inquiries and resolve payment issues?
Answer: Vendor inquiries are handled promptly by addressing concerns, resolving payment issues efficiently, and maintaining open communication to ensure positive vendor relationships and timely payments.
40. What strategies do you use to optimise the payment cycle and take advantage of early payment discounts?
Answer: Payment cycle optimisation strategies include negotiating early payment discounts, implementing efficient payment processing systems, and monitoring cash flow to take advantage of favourable payment terms.
41. How do you maintain compliance with tax regulations and vendor payment terms?
Answer: Compliance with tax regulations and vendor payment terms is maintained by staying updated on legal requirements, adhering to internal controls, and ensuring timely and accurate payments.
42. What methods do you use to prevent duplicate payments?
Answer: Duplicate payments are prevented by implementing controls such as invoice matching, segregation of duties, and regular reconciliation of accounts to identify and rectify errors.
43. Can you explain the concept of “ageing” in Accounts Payable and how it impacts cash flow management?
Answer: Ageing in Accounts Payable refers to the time elapsed since an invoice was received and reflects the outstanding balances owed to vendors. Managing ageing helps in cash flow management and prioritising payments.
44. How do you handle the processing of expense reports and employee reimbursements?
Answer: Expense reports and employee reimbursements are processed by verifying expenses, ensuring compliance with company policies, obtaining proper approvals, and reimbursing employees accurately and promptly.
45. What steps do you take to maintain vendor master data and ensure data accuracy?
Answer: Vendor master data is maintained by updating vendor information regularly, verifying accuracy, and ensuring data integrity to facilitate smooth transactions and reporting.
46. How do you manage vendor relationships and negotiate favourable payment terms?
Answer: Vendor relationships are managed by fostering open communication, addressing concerns promptly, and negotiating payment terms favourable to both parties to ensure long-term partnerships.
47. Can you describe your experience with using accounting software and ERP systems for Accounts Payable?
Answer: Experience with accounting software and ERP systems for Accounts Payable including data entry, invoice processing, payment scheduling, reporting, and reconciliation tasks.
48. What procedures do you follow for end-of-month or year-end closing in Accounts Payable?
Answer: End-of-month or year-end closing in Accounts Payable involves reconciling accounts, generating financial reports, preparing accruals, and ensuring all transactions are properly recorded for financial statements.
49. How do you prevent and detect fraudulent activities in the Accounts Payable process?
Answer: Fraudulent activities in Accounts Payable are prevented and detected through internal controls, segregation of duties, regular audits, and employee training on recognising red flags and reporting suspicious activities.
50. What are some of the accounts payable software/tools you use every day?
Answer: Accounts payable software/tools used daily include accounting software (e.g., QuickBooks, SAP), ERP systems (e.g., Oracle, Microsoft Dynamics), and specialised AP automation platforms for invoice processing and payment management.
51. List the advantages of the PO purchase process.
Answer: Here are the advantages of the PO purchase process
- Increases inventory and financial management accuracy.
- Improves financial planning and budgeting because money must be available before issuing a PO.
- Helps suppliers schedule manufacturing and/or delivery when the consumer needs it, resulting in speedier delivery.
- Can be as strict or flexible as necessary – a single PO can only cover a single transaction, but a blanket PO allows the client to buy things or services constantly until a predetermined maximum limit is met.
52. What Is the PO and Non-PO Payment Process?
Answer:
| Feature | PO Invoices | Non-PO Invoices |
| Pre-Approval | Yes, part of the requisition procedure | No, not pre-approved |
| Processing for Payment | Immediate if data matches PO and goods receipt | Requires determination of proper accounting codes |
| Discrepancy Handling | Buyer receives invoice for inspection | Multi-tiered approval process |
| Documentation Requirement | Supported by purchase order and goods receipt | May lack supporting paperwork |
| Approval Procedure | Simplified, less manual review and approval needed | More involved, based on type, value, and location |
| Time Consumption | Minimal | Time-consuming |
| Margin for Errors | Lower | Higher |
| Payment Confirmation | Immediate upon completion of the approval procedure | Confirmed by AP once the approval procedure is done |
53. What are the risks of a non-PO invoice?
Answer: A non-Purchase Order (PO) invoice might be troublesome for your Accounts Payable (AP) department. And manually processing invoices can be an expensive and time-consuming administrative burden. Non-PO invoices can result in late payments, damaging your credibility with your suppliers. Late payments could also lead to suppliers pausing services or goods being delivered.
Accounts Payable HR Interview Questions
Here are some important HR interview questions listed. Anyone looking for a job in accounts payable should review the below-mentioned questions before appearing for the interview.
54. Why did you choose a career in accounting?
Answer: I chose a career in accounting because I enjoy working with numbers and solving financial puzzles. I find satisfaction in helping businesses manage their finances effectively and make informed decisions.
55. How effective are you when there is a payment deadline?
Answer: I am highly effective when facing payment deadlines, prioritising tasks, and ensuring timely payments. I thrive under pressure, utilising time management skills and collaborating with colleagues to meet deadlines efficiently.
56. What motivated you to apply for an account payable position?
Answer: I applied for an accounts payable position because I have strong attention to detail and enjoy working with financial transactions. I am motivated to contribute my skills to ensure accurate and timely payments for the organisation.
57. Explain how you handled a complex or urgent payment request.
Answer: When faced with a complex or urgent payment request, I remain calm and focused. I assess the situation, gather necessary information, and collaborate with stakeholders to expedite the process while maintaining accuracy and compliance with policies.
58. What are your strengths and weaknesses?
Answer: Hiring managers frequently ask about your strengths and weaknesses during a job interview.
Strengths: I never miss deadlines. I’m extremely organised, and I’ve applied my skills to organise people and tasks in every part of my career.
Weaknesses: Due to my introverted personality, I used to struggle with presenting my ideas to the team and speaking up during team meetings. However, I’ve realised the importance of participation and have been actively attempting to improve in this area.
59. How do you explain complex or new topics to your coworkers or clients?
Answer: While explaining complex topics, I empathise with the audience, avoiding assumptions. Listen actively, summarise questions, and refrain from interrupting. Employ open-ended questions for deeper understanding. I use multimedia resources for diverse learning styles. I give real-life examples to clarify concepts effectively, ensuring audience comprehension and applicability.
Tip: For people to understand difficult topics, you must first learn who they are, ask the correct questions, and ensure that what you’re delivering meets their needs.
60. Do you want to ask us anything?
Answer: When asked “Do you want to ask us anything?” in an interview, it’s an opportunity to demonstrate your interest and engagement. You could ask about company culture, and growth opportunities, or inquire about the team dynamics. It’s also a chance to clarify doubts about the role or responsibilities.
How to Prepare for an Accounts Payable Interview?
Preparing for an accounts payable interview requires a combination of technical knowledge, practical experience, and strong communication abilities. Here are seven unique suggestions for succeeding in your accounts payable interview:
Revise Accounting Concepts
Ensure that you comprehend basic accounting principles including debits and credits, accruals, and the chart of accounts. Familiarise yourself with key financial phrases used during the accounts payable process.
Exhibit software proficiency
Be prepared to demonstrate your knowledge of popular accounting software and tools used in accounts payable, such as QuickBooks, SAP, and other ERP systems. Discuss specific projects that you’ve completed utilising these tools.
Problem-Solving Skills
Share examples of difficult situations you’ve faced in accounts payable and how you handled them. Employers value potential employees who can demonstrate critical thinking and problem-solving skills.
Highlight Attention to Detail
Accounts payable require precision and accuracy. Discuss your rigorous approach to validating invoices, reconciling finances, and maintaining data integrity.
Address Vendor Relationship Management
Accounts payable entails working directly with vendors. Highlight your expertise in managing strong vendor relationships, resolving issues, and guaranteeing timely payments.
Organisational Skills
Accounts payable entails managing a huge number of invoices and payments. Discuss how you prioritise projects, fulfil deadlines, and have an organised workstation or digital filing system.
Discuss Process Improvement Initiatives
Employers prefer applicants who can detect inefficiencies and propose solutions. Mention any process optimisation projects in which you have led or participated, as well as the good consequences.
Conclusion
The above accounts payable questions and questions related to accounts payable processor and accounts payable specialist will help you crack an interview and help you understand more about accounts payable.
FAQs
- What are common accounts payable interview questions?
Common accounts payable interview questions focus on invoice processing, vendor management, payment cycles, and reconciliation. Examples include, “How do you handle discrepancies in invoices?” and “Describe the accounts payable process.” - How should I prepare for an accounts payable interview?
To prepare, review key accounts payable concepts like invoice processing, general ledger accounts, and payment terms. Practice explaining common procedures, handling discrepancies, and showcasing problem-solving abilities related to AP tasks. - What skills are needed for accounts payable roles?
Essential skills include attention to detail, organizational skills, proficiency in accounting software, and strong communication for handling vendor interactions. Problem-solving and understanding of financial compliance are also critical. - Why is accuracy important in accounts payable?
Accuracy in accounts payable prevents financial discrepancies, avoids duplicate payments, and maintains good vendor relationships. Errors can lead to incorrect financial reporting and budget issues. - What tools are commonly used in accounts payable?
Accounts payable teams often use software like SAP, QuickBooks, and Oracle for invoice processing, payment tracking, and vendor management. Excel is also widely used for data management and reconciliation.
