Account Receivable Manager Job Description, Skills and Salary
Get to know about the duties, responsibilities, qualifications, and skills requirements of an account receivable manager. Feel free to use our account receivable manager job description template to produce your own. We also provide you with information about the salary you can earn as an account receivable manager.
Who is an Account Receivable Manager?
Accounts receivable managers oversee the company’s financial transactions. Your job duties will include managing invoices and billing, collecting unpaid invoices, and organizing transactions into a financial statement that includes all money received for each month. You may supervise an office or department of accountants and bookkeepers work in the accounts department.
The Accounts Receivable Manager is part of the HQ Finance Department and works directly with Treasury and Development Operations in the receipt and recording of banking activities.
Accounts receivable professionals ensure that companies receive payments for goods and services provided. They also keep a log of transactions and help resolve any issues or missed payments. The job is clerical and administrative, as well as financial. This profession is available in many industries including non-profit organizations, healthcare facilities, and government branches as well as corporations, for-profit businesses, and higher education campuses. This field is often full-time and requires overtime during tax season, the end of a fiscal year, or during audits.
Sometimes, an accounts receivable manager might need to travel to meet clients, but the majority of their work is done at their desk. To do their jobs effectively and efficiently, they often rely upon specialized equipment and software related to accounting.
This professional is also responsible for recording all bank transactions, receipts, bank charges, and transfers on time. The AR Manager also records and disburses petty money payments and issues receipts for miscellaneous payments received at Headquarters. The Accounts Receivable Manager reports directly to the Accounting & Reporting Officer.
Account Receivable Manager Job Description
Below are the account receivable manager job description examples you can use to develop your resume or write an account receivable manager job description for your employee. Employers can also use it to sieve out job seekers when choosing candidates for interviews.
- Conducting credit checks on potential and new customers.
- Adopting company policies and regulations for debt collection.
- Ensuring that invoicing and collection deadlines are met
- Monitoring the invoicing process and money collection
- Assisting in the timely collection
- Negotiating with customers in cases of non-payment
- Preparing monthly feedback reports about payment collection.
- Keeping records of all payments collected, including deposits and invoices.
- Mentoring and training employees in the department.
- Monitoring the billing procedures
- Implementing credit checks
- Interacting with customers in non-payment cases
- Ensuring that all receivables procedures comply with legal regulations
- Supervising the accounts receivable department following accounting principles
- Supporting Accounts Receivable Clerks in their daily tasks
- Being updated with changes in the industry niche and related laws
- Answer clients’ billing questions
- Keeping the management informed about any particular issues
- Initiating collection on past-due accounts
- Keeping accounting records accurate and following best practices
- Maximizing cash flow liquidity by monitoring the working capital, bad debt, and AR levels of the company.
- Supervising the management of aged debt and provisions for bad debt in statutory accounts
- Anticipating the customer’s needs and providing timely solutions or opinions on complex issues.
- Improving and maintaining policies and procedures to collect client money
- Ensuring credit management, including financial analysis, creditworthiness evaluation, and provision of credit lines
- Reviewing and monitoring any disputed invoices for resolution
- Streamlining the payment process and making necessary improvements
- Working closely with business leaders to ensure prompt billing
- Establishing strong relationships with business leaders and clients to influence them.
- Monitoring accounts and receiving payments
- Performing verification, classification, computing, posting, and recording of accounts receivable data
- Verifying discrepancies
- Answering billing questions of clients and helping them resolve them
- Managing bank deposits, bills, and invoices.
- Consolidating the accounts receivable ledger
- Verifying that all payments have been properly posted
- Assisting with the preparation of financial statements
- Assisting with the preparation of detailed accounts receivable status
Other important tasks include
Invoice Creation
The Accounts Receivable Manager is responsible for creating invoices promptly for clients after product delivery or project completion. Invoices should be accurate and include information that can be used to remit money advice such as the address where payment is to be sent and the due date. After invoices have been created, they are sent to the client. The system tracks the invoices through a process called “aging.”
Following up with clients
The account receivable manager will follow up with the client approximately one week after the invoices have been mailed to verify receipt. The manager will ask questions regarding the invoice and check for any problems to ensure that outstanding receivables are not overlooked. The account receivable manager will work with the client to resolve any disputes regarding the amount due and make necessary adjustments.
- Invoice Aging
The account receivable manager creates a spreadsheet with information about the client as well as the invoices. The spreadsheet records the invoice’s age, from its creation date to the present date. The spreadsheet includes information about when the client was reached and the terms of the payment agreement. If the invoice is paid in full within 10 days, payment terms may include discounts, such as a discount of 2 percent. Invoices are usually due immediately upon receipt, particularly if they deal with products. Some clients may have terms that allow them the flexibility to pay invoices 15-30 days or 60-days after collecting their receipt.
- Payments
The account receivable manager receives payment against invoices that are created in the accounting software. He makes sure that cash and checks are applied to the correct income and revenue accounts, and ensures that the accounting system accurately records these deposits.
Qualifications
You may need to have certain qualifications to be an accounts receivable manager. This will be determined by the job you are applying for.
Education
Accounts receivable managers must have a minimum of a high school diploma. However, many employers prefer applicants with a bachelor’s degree. Employers also prefer candidates to have their CPA license. This usually requires them to complete a graduate-level program. Candidates must also have at least two years of experience in professional accounting.
Training
Account receivable specialists receive training on best practices and methods while they are on the job. However, there are many courses and programs that can be used to enhance your skills. To gain valuable experience in finance, you should seek an entry-level position in accounting. You can become qualified for a higher-ranking position by learning how to keep accurate records.
Certificates
Professionals can earn certifications to show their skills to future and current employers. Accounts receivable specialists can obtain certifications to increase their theoretical knowledge, improve their professional skills, and advance their careers. These are the two most popular certifications in this field:
- Certification of Accounts Receivable (AR).
The Institute of Finance and Management (IOFM) give these awards to the Accredited Receivables Specialist and Accredited Receivables Management (ARM) designations. These designations validate your knowledge of core concepts and best practices in accounting as well as your commitment towards accuracy and compliance.
- Certified Public Accountant (CPA), license
This accounting certification, granted by the American Institute of Certified Public Accountants (“AICPA”), is the highest standard in accounting and finance roles in America. This credential confirms your expertise and credibility in highly specialized accounting skills, which can lead to top CPA positions. Although not necessary for account receivable specialists it can make you an attractive candidate when looking for jobs.
Essential Skills
To succeed as an account receivable manager, you need a variety of skills. These skills include:
- Communication skills
Accounting professionals need to be able to communicate information in a way that is understandable and helps management make informed decisions. Accounts receivable managers often create simple-to-understand reports that allow non-accounting professionals to understand and analyze financial data. Accounts receivable managers can also communicate with customers to create a customer-service aspect.
- Adaptability
Account receivable managers must be able to adapt to changes to the SEC (security & exchange commission), new tax laws, and evolving GAAP (Generally Accepted Accounting Practices) standards within the accounting industry. It is important to keep abreast of industry changes to comply with these laws.
- Technical skills
Accounting receivable managers need to be able to operate and troubleshoot software and equipment designed to improve efficiency and increase automation. Technical proficiency includes the ability to read, understand and use relevant data to accomplish their tasks.
- Time management skills
Account receivable managers often work on multiple projects simultaneously with tight deadlines. To meet deadlines, these professionals must prioritize and assign time frames to each part of a project.
- Computing Genius
Most accounts receivable managers are done with the days of manually managing accounts using register tapes and adding machines. Bookkeeping today often requires very few books. Everything’s computerized. Accounting software is used to track accounts, create reports, invoices and statements, as well as find relevant information for clients and coworkers.
- Knowledge of basic Mathematics
Basic math is a crucial skill for accounts receivable managers. You need to be able to spot errors on invoices, run numbers while talking with clients or coworkers, or do some adding and subtracting in your head.
- Super organizational skills
You can be an accounts receivable manager in any kind of business. This involves keeping track of paper trails as you send invoices and statements to customers and clients and accounting for the payments received. You will likely manage the people responsible for tracking these items. However, regardless of how large your department is, you must also be organized. Misplaced payments and neglected invoices, as well as lost items, all reflect poorly on you.
- Forecasting Savvy
As an accounts receivable manager, you don’t expect to be able to predict the weather, but you will often be asked to forecast what is important for your company. However, your employer will find you more valuable if you are accurate and your reconciliation reports are good. Accounts receivable managers often decide what terms customers and clients receive. This is done by reviewing past performance, running credit checks, and getting references. It is also a valuable skill to know the best methods for determining creditworthiness.
- Diplomatic Finesse
It is hard to believe that all customers and clients will pay their bills on time or at all. You are the accounts receivable manager and have to deal with the footdragging customers, initiating the collection process, and trying to collect some or all of the due payment. If you are good at having meaningful conversations with people, the better your chances of success when it comes to collecting from accounts that don’t pay on time.
How to Become an Account Receivable Manager
This is the best path to take to become an account receivable manager.
- Pursue education.
Two-year programs are available at both community colleges and private schools of business. They can prepare you for a career as a bookkeeper or accounts receivable clerk. A bachelor’s degree is usually required to get a job as an entry-level accountant or auditor.
- Gain relevant work experience.
To gain relevant work experience, you should look for entry-level vacancies or bookkeeping positions. These positions allow you to learn from the job and perform tasks under supervision. These jobs can be completed while you are still completing your education.
- Earn technical certifications
Accredited Receivable Manager certification will help you land the job that you desire. These credentials validate your knowledge and proficiency in accounting concepts. You can earn additional designations that are focused on accounting functions by demonstrating your commitment to accuracy, compliance, and professionalism.
- Prepare your resume.
Your highest education level, relevant certifications, and work experience should be included. This includes the name of the company or organization in your work history, along with dates and a description of what you did there. Highlight your professional development and any notable accomplishments and recognitions.
- Support high-ranking executives by applying.
You can check the current job listings in your area. You can also gain experience by pursuing an entry-level position in this job.
Where to Work
Accounts receivable managers work in a moderately quiet office environment. They have the following characteristics:
- Sitting for long periods at a desk
- Occasional travel to meet clients
- The full-time workweek of 40 hours, with overtime during audit periods
- Specialized software and equipment are used for collections and accounting.
- Regular communication with executives and other department heads
- Conforming to accounting regulations and best practices
In many industries, the skills, knowledge, and experience of accounts receivable experts are valuable. Here are some industries that require these professionals’ qualifications:
- Businesses and corporations
- Higher educational institutions
- Government agencies
- Health care facilities
- Non-profit organizations
Account Receivable Manager Salary Scale
Full-time work is common for accounts receivable managers. Salary for accounts receivable specialist varies depending on education, work experience, and the industry, size, and location of the employer.
The average national salary for an account receivable manager in the United States is $42,267 per annum.