accounts payable professional Interview Questions and Answers

1. What is Accounts Payable (AP)?

   • Answer: Accounts Payable is the department or function responsible for recording, processing, and paying invoices for goods and services purchased by a company. It's a crucial part of the financial cycle, ensuring vendors are paid accurately and on time.

2. Explain the invoice processing cycle.

   • Answer: The invoice processing cycle typically involves: receiving invoices, verifying invoice accuracy (comparing to purchase orders and receiving reports), coding invoices to the correct general ledger accounts, approving invoices, entering invoices into the AP system, paying invoices (by check, ACH, or other methods), and filing invoices.

3. What is a purchase order (PO)?

   • Answer: A purchase order is a formal document issued by a buyer to a supplier, authorizing the purchase of specific goods or services at a stated price and quantity. It serves as a legal contract between the buyer and seller.

4. What is a three-way match?

   • Answer: A three-way match is a crucial control in AP, involving comparing the purchase order, the invoice, and the receiving report to ensure they all match before payment is processed. This helps prevent errors and fraud.

5. What are some common AP errors?

   • Answer: Common errors include incorrect invoice amounts, duplicate payments, late payments, incorrect coding, missing purchase orders, and discrepancies between purchase orders, invoices, and receiving reports.

6. How do you handle invoice discrepancies?

   • Answer: I would immediately contact the vendor to clarify the discrepancy. I would gather supporting documentation such as purchase orders, receiving reports, and contracts to determine the correct amount. I would document the process and the resolution clearly.

7. What are different payment methods used in AP?

   • Answer: Common payment methods include checks, Electronic Funds Transfer (EFT), wire transfers, and online payment portals. The choice often depends on vendor preference, payment terms, and company policy.

8. Explain the importance of internal controls in AP.

   • Answer: Strong internal controls in AP are essential to prevent fraud, ensure accuracy, and maintain compliance. They include segregation of duties, authorization procedures, reconciliation processes, and regular audits.

9. What is a vendor master file?

   • Answer: A vendor master file is a database containing all information about a company's vendors, including contact details, payment terms, tax information, and banking details.

10. How do you handle vendor inquiries?

    • Answer: I would respond promptly and professionally, acknowledging receipt of their inquiry. I would investigate the issue thoroughly, gathering necessary information, and providing a clear and timely response, even if it's to say I need more time to investigate.

11. What software or systems have you used for AP?

    • Answer: [Replace with your own experience, e.g., "I have experience with SAP, Oracle Financials, and QuickBooks."]

12. Describe your experience with AP automation.

    • Answer: [Replace with your own experience, e.g., "I have experience using AP automation software to streamline invoice processing, reducing manual work and improving efficiency."]

13. How do you prioritize your workload?

    • Answer: I prioritize tasks based on deadlines, urgency, and importance. I use tools like to-do lists and calendars to manage my workload effectively. I also communicate with stakeholders to ensure alignment on priorities.

14. How do you handle a high volume of invoices?

    • Answer: I would utilize AP automation tools and prioritize invoices based on due dates and payment terms. I would also look for opportunities to streamline processes and improve efficiency.

15. What are your strengths as an AP professional?

    • Answer: [Replace with your own strengths, e.g., "My strengths include attention to detail, accuracy, problem-solving skills, and the ability to work independently and as part of a team."]

16. What are your weaknesses as an AP professional?

    • Answer: [Replace with a genuine weakness and how you are addressing it, e.g., "I sometimes struggle with delegating tasks, but I'm actively working on improving my delegation skills by taking on a mentorship role."]

17. Why are you interested in this position?

    • Answer: [Replace with your own reasons, demonstrating genuine interest in the company and the role.]

18. What is your salary expectation?

    • Answer: [Research the average salary for the position in your area and provide a range based on your experience and skills.]

19. What are your career goals?

    • Answer: [Share your career aspirations, aligning them with the company's growth opportunities.]

20. How do you stay up-to-date on changes in AP best practices?

    • Answer: I regularly attend industry conferences, webinars, and read professional journals and publications. I also actively participate in professional organizations.

21. What is your experience with different accounting software?

    • Answer: [List the software you've used, including details on your experience with each.]

22. Describe a time you had to deal with a difficult vendor.

    • Answer: [Describe a situation, highlighting your problem-solving and communication skills.]

23. Describe a time you made a mistake in AP. How did you handle it?

    • Answer: [Describe a specific situation, emphasizing your ability to take responsibility and learn from mistakes.]

24. How do you ensure accuracy in your work?

    • Answer: I use a methodical approach, double-checking my work, and using internal controls to minimize errors. I also maintain detailed records and documentation.

25. What is your experience with accounts payable audits?

    • Answer: [Describe your experience assisting with or undergoing AP audits. Highlight your knowledge of audit procedures and compliance requirements.]

26. How do you handle situations where invoices are missing supporting documentation?

    • Answer: I would immediately contact the vendor to request the missing documentation. I would document the request and follow up as necessary. If the documentation isn't received, I would escalate the issue to my supervisor.

27. Explain your understanding of different types of discounts (e.g., early payment discounts).

    • Answer: I understand early payment discounts (taking a percentage off for paying early), quantity discounts (receiving a lower price per unit for buying in bulk), and other types of discounts offered by vendors. I know how to calculate these discounts and ensure they're correctly reflected in our payments.

28. How do you manage your time effectively to meet deadlines?

    • Answer: I prioritize tasks based on urgency and deadlines, break down large tasks into smaller, manageable ones, and use time management techniques like time blocking and the Pomodoro Technique.

29. How do you handle stressful situations in the workplace?

    • Answer: I remain calm under pressure, prioritize tasks, and seek help when needed. I utilize stress management techniques such as taking breaks and practicing mindfulness.

30. What is your experience with preparing and analyzing AP reports?

    • Answer: [Describe your experience with preparing reports such as aging reports, payment summaries, and other key performance indicators. Explain how you use this data to identify trends and areas for improvement.]

31. How familiar are you with Generally Accepted Accounting Principles (GAAP)?

    • Answer: [Explain your understanding of GAAP and how it applies to accounts payable. Specify which areas you are most familiar with.]

32. How do you ensure compliance with tax regulations related to AP?

    • Answer: I ensure accurate recording of sales tax, withholding tax, and other relevant taxes. I stay updated on tax laws and regulations and work closely with the tax department to ensure compliance.

33. What is your experience working with different ERP systems?

    • Answer: [List ERP systems and describe your experience with them.]

34. Describe your experience with expense reports.

    • Answer: [Describe your involvement in processing or reviewing expense reports. Highlight your understanding of expense policies and procedures.]

35. How do you handle situations where a vendor refuses to correct an invoice error?

    • Answer: I would document everything, attempt further communication, and escalate the issue to my supervisor or management. I might involve legal counsel if necessary.

36. What is your experience with month-end/year-end closing processes in AP?

    • Answer: [Describe your involvement in month-end/year-end closing, including tasks like reconciliation, report generation, and ensuring timely completion.]

37. How familiar are you with internal audit procedures related to AP?

    • Answer: [Describe your familiarity with internal audit procedures and best practices for AP. Mention specific procedures you've been involved with.]

38. What is your experience with implementing new AP processes or systems?

    • Answer: [Describe your experience participating in implementing new systems or processes, highlighting your contribution to the process and the positive outcomes.]

39. How do you handle disputes with vendors regarding payment amounts?

    • Answer: I would gather all supporting documentation, including contracts, purchase orders, invoices, and communications. I would attempt to resolve the dispute amicably through clear communication and negotiation.

40. Describe your experience with identifying and preventing duplicate payments.

    • Answer: [Describe processes used to identify and prevent duplicate payments, such as using automation tools and implementing strong internal controls.]

41. How do you ensure that all invoices are processed in a timely manner?

    • Answer: I prioritize invoices based on due dates and payment terms, using efficient workflow processes and automation tools. I also communicate proactively with vendors and internal stakeholders.

42. What is your experience with using different reporting tools for AP data analysis?

    • Answer: [List reporting tools used, describe how you used them to analyze data, and the insights you gained.]

43. How do you maintain good relationships with vendors?

    • Answer: I communicate clearly and professionally, respond promptly to inquiries, and resolve issues fairly and efficiently. I strive to build trust and mutual respect.

44. What is your experience with resolving invoice discrepancies related to taxes?

    • Answer: [Describe your experience in resolving tax-related discrepancies, including gathering supporting documents and verifying tax rates.]

45. How do you stay organized and manage your workload in a fast-paced environment?

    • Answer: I use organizational tools, prioritize tasks, and manage my time efficiently. I'm adaptable and able to handle changing priorities effectively.

46. What is your understanding of the Sarbanes-Oxley Act (SOX) and its relevance to AP?

    • Answer: [Explain your understanding of SOX and how it impacts internal controls and compliance within AP.]

47. How do you ensure data integrity within the AP system?

    • Answer: I follow established procedures, double-check data entry, and perform regular reconciliations. I also report any discrepancies immediately.

48. Describe your experience with different types of vendor payment terms.

    • Answer: I'm familiar with various payment terms, including Net 30, Net 60, and others. I understand how to calculate payment due dates and ensure timely payments according to agreed terms.

49. How do you handle late invoices?

    • Answer: I would follow up with the vendor to understand the reason for the delay. I would document the communication and ensure that the invoice is processed as quickly as possible once received.

50. What is your experience with preparing and submitting 1099 forms?

    • Answer: [Describe your experience with preparing and submitting 1099 forms, including understanding which vendors require them and the correct reporting procedures.]

51. What is your experience with using workflow automation tools in AP?

    • Answer: [Describe your experience using workflow automation tools to streamline invoice processing and approvals.]

52. Do you have experience working with a shared services center?

    • Answer: [Describe your experience working in a shared services environment and how you collaborated with other teams.]

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