Accounts Payable and Accounts Receivable Jobs Explained

The short version

Accounts payable is money the company owes to suppliers. Accounts receivable is money customers owe the company. Together they keep cash flowing, so these roles are at the heart of finance operations.

Accounts payable (AP)

1. Receive the supplier invoice.
2. Match it with the purchase order and the goods or service received (three-way match).
3. Check taxes, amounts and approvals.
4. Post the invoice in the system.
5. Schedule and process the payment on the due date.
6. Answer supplier queries and reconcile statements.

Accounts receivable (AR)

1. Raise invoices to customers.
2. Track due dates and send reminders.
3. Apply received payments to the right invoices (cash application).
4. Follow up on overdue amounts and resolve disputes.
5. Report ageing of receivables to management.

Terms to know

• Purchase order, invoice, credit note and debit note
• Ageing report: how long invoices have been unpaid
• Cash application and reconciliation
• Payment terms such as net 30
• Month-end closing and accruals

Global shared-service roles

Many companies run AP and AR for global operations from India. These roles, often described as order-to-cash and procure-to-pay, may use ERP systems and follow set processes. Some follow overseas hours, so check the shift.

Skills to build

• Accounting fundamentals and attention to detail
• Excel: lookups, pivot tables, filters
• ERP familiarity such as SAP or Oracle
• Professional email writing for vendors and customers
• Problem-solving on mismatches and disputes

Career path

Executive, senior executive, team lead, process manager, then finance operations or controller roles. Specialists can move into treasury, audit, taxation or analytics.

Next step

Register on JobKarle and apply to AP, AR and order-to-cash roles.