The accounts receivable job position has incredible relevance in any organization. This professional is tasked with ensuring that all the company’s payments are received in due time. In this article, we provide you with accounts receivable job description, its primary duties and responsibilities, are there any particular salary brackets, employment criteria and the most commonly asked questions by the candidates.
Accounts Receivable Job Description
Those accounting professionals that work with the money that is owed to a business by its customers that have purchased goods in a credit facility are referred to as AR specialists. As the name suggests, this is the position that focuses almost entirely on the collection of accounts made by clients. Accounts receivable specialists tend to work in any industry that offers credit sales like retail, health, manufacturing and finance where the assist the companies to meet the basic financial services through ensuring that all business dealings with their clients are accurately reported.
Most of the tasks performed have an emphasis on accounts and would therefore require an applicant to be knowledgeable on the basic accounting concepts and have good attention to detail especially when communicating with the use of specific programs. Their responsibilities can also include, but are not limited to resolving discrepancies, making reports, and answering addresses regarding billing.
Resume Description for This Job
As much as being a detail-oriented accountant is crucial in the role of an accounts receivable officer, you should also remember to highlight your experience in financial management and account balance management on your resume as well. For example, here is an example resume description:
‘Accounting professional with attention to detail seeking for challenge driven Accounts Receivable Officer. Over [X] years of working experience in tracking customer / payment, invoicing, and collection. More than 3 to 5 years working experience with QuickBooks accounting package and SAP in billing problem resolution and outstanding balance. Ability to analyze and provides greater accuracy to financial reports and greater customer account management.’
Feel free to adjust details to better match your experience!
Salary
In the US, the salary of an accounts receivable specialist is callback to a ratio of experience, the industry worked in and even the specific location. Here’s a general idea of that ratio or callback:
- Average Annual Salary: The average annual salary of an accounts receivable specialist ranges from 40,000 USD to 55,000 USD a year
- Entry-Level Salary: Mostly around $35,000 a year
- Experienced AR Specialist Salary: Around $65,000 a year
One accounts receivable specialist should note that the salaries offered for AR roles in different industries such as finance, manufacturing and healthcare tends to be in the AR experts and advanced skills range.
Responsibilities.
An accounts receivable specialist is responsible for a number of financial and administrative duties which help in the payment processing and billing systems. Some of the key responsibilities include:
- Managing Invoices and Payments: Make sure invoices are generated in a timely manner; share invoices with clients; make sure all invoices are present in the system; and that all payments are made within the stipulated time.
- Recording Transactions: Ensure that payments are made and captured in the accounting system, and that records are kept for transactions meant for audit purposes.
- Handling Collections: Talk to clients with outstanding balances and explain to them the due dates of payments and their corresponding transactions for proper collection.
- Reconciling Accounts: Contact customers periodically to reconcile their accounts in order to detect inconsistencies and prevent the accumulation of problems.
- Preparing Financial Reports: Prepare and submit to management reports that summarize the balance of accounts, the age of invoices and accounts that have been referred to the collection department.
- Communicating with Customers: Respond to customer questions about their bills and assist them in making payments and resolving the conflict if it arises.
- Supporting Month-End Closing: Contribute to the closing of the week / month by ensuring all records of the accounts receivable are properly recorded in the appropriate schedule.
Qualifications.
In order to become an accounts receivable specialist, certain skills and qualifications are needed. Here is what most employers expect:
- Education: A high school graduate or its equivalent is acceptable; however, in some cases, an associate or a bachelor’s degree in finance, accounts, or any other related discipline may be preferred.
- Experience: Some positions provide training on the job, however, having experience and knowledge in accounting, finance, or bookkeeping is an advantage.
- Skills: Need to possess good communication skills, ability to solve problems, and proficiency in some accounting programs such as QuickBooks, SAP, or Oracle, as well as attention to detail.
- Certifications: Certifications such as Certified Accounts Receivable Specialist (CARS) or other finance certification allow a person to apply for more jobs in case such certificates are not a must.
FAQs
Q1: Do accounts receivable specialists need specific certifications?
The certification is not a must but having that never hurts as for those who have ambition pursuing higher positions one can obtain CARS certification and advance in their financial accounting career.
Q2: What are the most important skills for accounts receivable professionals?
The client’s attention and time when requesting assistance should be minimal, and as such, accounts receivable specialists should use their strong analytical and detail precise skills and knowledge of advanced financial software. Fundamentals of customer service and engaging communication is also a must as they must assist clients through a considerable number of payment disputes.
Q3: I have a legitimate dream of working in accounts receivable, but will I be able to grow professionally?
Definitely, accounts receivable specialists can grow into accounts receivable managers, controllers, or even finance managers, for those with higher education and a range of certificates there are even more possibilities in the world of finance and accounting for them.
Q4: How does accounts receivable differ from accounts payable?
Accounts receivable focuses on incoming payments and collections from customers, while accounts payable handles outgoing payments and financial obligations to suppliers and vendors.
Conclusion
All things considered, those who take on an accounts receivable role inside an organization have a fundamental aim that is to be able to implement strategies that enable the firm to maintain a healthy cash flow. It is worth noting that with the relevant qualification and sufficient knowledge and experience, accounts receivable specialists will also be relatively well off.