Accounts Receivable Job Description: A Complete Guide

Introduction

In today’s business environment, where cash flow can make or break an organization, the accounts receivable (AR) department plays a critical role. Accounts receivable professionals ensure that companies get paid for the products and services they provide, helping businesses stay financially healthy and sustainable.

When customers buy goods or services on credit, the money they owe becomes accounts receivable for the company. Collecting these payments efficiently requires attention to detail, negotiation skills, and financial knowledge—skills that AR professionals bring to the table.

What is Accounts Receivable?

Before we dive into the job description itself, it’s important to understand the concept of accounts receivable and why it matters.

Definition

Accounts receivable (AR) refers to the outstanding money owed to a business by its customers for products or services delivered on credit. It’s recorded as a current asset on the company’s balance sheet because it’s expected to be converted into cash within a short time frame (usually 30–90 days).

For example:
If a consulting firm provides services worth $5,000 and gives the client 45 days to pay, that $5,000 becomes accounts receivable until the payment is made.

Apply Now USA Jobs

Key Features of Accounts Receivable

• Represents credit sales (not cash transactions).
• Directly affects cash flow and liquidity.
• Managed through proper invoicing, collections, and reconciliation.
• Typically handled by the accounts receivable team or specialist.

Distinction Between Accounts Receivable (AR) and Accounts Payable (AP)

Many people confuse AR with AP, but they are opposite concepts:

• Accounts Receivable (AR): Money owed to the company by its customers.
• Accounts Payable (AP): Money the company owes to its suppliers or vendors.

In other words, AR increases when a company extends credit to customers, while AP increases when the company buys goods/services on credit.

Why Accounts Receivable Matters for Businesses

Accounts receivable encompasses more than merely the collection of funds—it is crucial for maintaining the continuity of business operations. Late or unpaid receivables can lead to cash shortages, making it hard to pay salaries, suppliers, or invest in growth. Strong AR management helps businesses:

• Maintain healthy cash flow.
• Reduce bad debt risk.
• Strengthen customer trust and relationships.
• Improve financial planning and forecasting.

Real-World Example of Accounts Receivable in Action

Consider a mid-sized manufacturing company that supplies parts to distributors. Instead of paying upfront, distributors are given 60-day payment terms. If the company sells $200,000 worth of products in one month, that amount is recorded as accounts receivable. The AR team monitors these invoices, sends reminders, reconciles payments, and follows up with any overdue accounts. If even 20% of these payments are delayed, the company could face serious cash flow challenges—highlighting why AR professionals are essential.

Accounts Receivable Job Overview

The accounts receivable job description goes beyond simple data entry—it represents a role that directly safeguards a company’s financial health. An accounts receivable professional is responsible for monitoring incoming payments, issuing invoices, managing customer accounts, and ensuring accurate financial reporting.

In most organizations, accounts receivable falls under the accounting or finance department. Depending on the size of the company, AR responsibilities may be handled by a single person (such as an AR clerk) or a dedicated team led by an AR manager.

Purpose of the Role

The primary purpose of accounts receivable is to ensure that money owed to the business is collected efficiently and on time. This includes not only recording financial transactions but also actively managing customer relationships to reduce late payments and disputes.

Key Objectives of the Accounts Receivable Role:

1. Maintain accurate records of all receivables.
2. Ensure invoices are sent out promptly and correctly.
3. Follow up with customers to secure timely payments.
4. Reduce the company’s exposure to bad debts.
5. Provide financial data for decision-making.

Oman Job Application Form

Accounts Receivable in Different Industries

Although the fundamental responsibilities are alike, the particular tasks may differ depending on the industry:

• Healthcare: AR specialists handle patient billing, insurance claims, and follow-up on unpaid medical services.
• Retail/E-commerce: Focuses on processing large volumes of customer payments and refunds.
• Manufacturing: Manages credit terms with distributors and wholesalers.
• Technology & SaaS: Monitors subscription fees and ongoing invoices.
• Professional Services: Issues invoices for consulting, legal, or marketing services.

No matter the industry, the accounts receivable function ensures that businesses remain financially stable by converting sales into actual revenue.

Accounts Receivable Duties and Responsibilities

A well-crafted accounts receivable job description must outline the duties and responsibilities clearly. This ensures candidates understand expectations and employers attract the right talent.

Here are the most common responsibilities of AR roles:

1. Invoice Preparation and Issuance

• Generate accurate invoices based on sales or service agreements.
• Ensure invoices comply with contract terms, tax laws, and company policies.
• Issue invoices to clients without delay to prevent payment holdups.

2. Payment Tracking and Recording

• Monitor customer accounts for incoming payments.
• Record transactions in the accounting system (ERP, QuickBooks, Xero, SAP, etc.).
• Align payments with their respective invoices to ensure precise record-keeping.

3. Collections and Follow-Up

• Contact customers regarding overdue invoices.
• Send reminders, statements, or collection notices.
• Negotiate payment arrangements when customers face difficulties.
• Maintain professionalism to protect client relationships while securing payments.

4. Account Reconciliation

• Reconcile AR records with the company’s general ledger.
• Investigate and resolve discrepancies between customer payments and invoices.
• Identify errors in transactions and correct them quickly.

5. Customer Relationship Management

• Act as the point of contact for clients regarding billing questions.
• Build positive customer relationships to encourage timely payments.
• Resolve disputes diplomatically to ensure long-term trust.

6. Compliance and Documentation

• Maintain detailed and organized financial records.
• Ensure compliance with GAAP, IFRS, or local accounting standards.
• Prepare documents for audits or tax purposes.

7. Reporting and Analysis

• Generate aging reports to track overdue accounts.
• Provide insights into payment patterns and risks.
• Work with management to improve AR processes and reduce collection cycles.

8. Support in Financial Closing

• Assist in month-end and year-end close activities.
• Provide AR-related data for financial statements.
• Collaborate with auditors during financial reviews.

France Jobs Apply Now

Why These Responsibilities Matter

Each of the above responsibilities contributes directly to business success:

• Timely invoicing ensures smooth cash inflow.
• Accurate reconciliation reduces errors that could misstate profits.
• Collections management prevents cash flow bottlenecks.
• Customer service maintains healthy client relationships while securing payments.

When all these duties are performed effectively, the company’s financial health improves, enabling growth, investment, and stability.

Accounts Receivable Skills & Competencies

To succeed in accounts receivable, professionals need more than just knowledge of accounting basics. The role requires a blend of technical expertise, analytical thinking, and interpersonal skills. Employers look for candidates who can handle high volumes of financial data while also communicating effectively with customers and internal teams.

1. Technical Skills

• Accounting Software Proficiency: Familiarity with platforms such as QuickBooks, Xero, SAP, Oracle NetSuite, or Microsoft Dynamics is crucial.
• Excel Mastery: Functions like VLOOKUP, pivot tables, and conditional formatting are often used to manage and analyze AR data.
• Understanding of Accounting Principles: Knowledge of GAAP (Generally Accepted Accounting Principles), IFRS (International Financial Reporting Standards), or local regulations.
• ERP Systems Knowledge: Experience in enterprise-level accounting systems to manage large transaction volumes.

2. Analytical Skills

• Ability to review aging reports and identify problem accounts.
• Skill in analyzing payment patterns and customer behaviors.
• Capacity to assess credit risks and suggest solutions.
• Proficiency in reporting KPIs such as Days Sales Outstanding (DSO) and collection effectiveness.

3. Soft Skills

• Attention to Detail: Even a small error in invoicing can delay payment or damage client trust.
• Communication Skills: Explaining payment terms or resolving disputes requires clear, professional communication.
• Negotiation Abilities: Essential for securing payment from overdue accounts without damaging relationships.
• Time Management: AR professionals often handle hundreds of invoices simultaneously, requiring strong organizational skills.
• Problem-Solving: When discrepancies arise, they must investigate and resolve issues quickly.

4. Interpersonal Competencies

• Ability to work collaboratively with sales, finance, and customer service teams.
• Strong customer service mindset to maintain long-term relationships.
• Diplomacy in handling sensitive financial conversations with clients.

Pro Tip for Job Seekers: Highlighting both technical expertise (software, accounting knowledge) and soft skills (communication, negotiation) in your CV or interview can significantly improve your chances of landing an AR position.

Accounts Receivable Career Path

The accounts receivable career path offers opportunities for growth and advancement within finance and accounting. Many professionals begin in entry-level positions and gradually progress into leadership roles.

1. Accounts Receivable Clerk (Entry-Level)

• Role: Focuses on data entry, invoice processing, and basic account reconciliation.
• Requirements: High school diploma or associate degree; minimal prior experience needed.
• Growth Potential: With 1–2 years of experience, clerks can advance to specialist roles.

2. Accounts Receivable Specialist

• Role: Manages the end-to-end AR process, including invoicing, collections, and reporting.
• Requirements: Bachelor’s degree in accounting/finance is often preferred, along with 2+ years of AR experience.
• Skills: Strong accounting software proficiency and customer service orientation.

3. Accounts Receivable Analyst

• Role: Focuses on analyzing AR data, trends, and process improvement strategies.
• Requirements: Typically requires a degree plus 3–5 years of AR or financial analysis experience.
• Skills: Advanced Excel, reporting, and business analysis skills.

4. Accounts Receivable Supervisor / Team Lead

• Role: Oversees a team of AR clerks or specialists, ensuring accuracy, compliance, and timely collections.
• Requirements: 4–6 years of AR experience, leadership ability, and strong problem-solving skills.
• Skills: Team management, strategic decision-making, and performance monitoring.

5. Accounts Receivable Manager

• Role: Responsible for setting credit policies, managing AR strategy, and aligning AR with company cash flow goals.
• Requirements: Bachelor’s degree in accounting or finance (MBA is a plus), with 6–10 years of experience.
• Skills: Leadership, financial reporting, credit management, and cross-department collaboration.

6. Senior Roles Beyond AR

• Credit Manager, Finance Manager, or Controller: With extensive AR experience, professionals often move into broader finance leadership positions.
• CFO Pathway: While not common for all, some AR professionals with strategic vision and advanced qualifications progress into executive finance roles.

Canada Jobs Apply Now

Accounts Receivable Job Description Samples

Employers often need clear, concise, and well-written job descriptions to attract the right talent. A well-structured job description outlines not only the duties but also the expectations, skills, and growth opportunities. Below are customizable sample job descriptions for different levels of AR roles.

Sample 1: Accounts Receivable Clerk

Job Summary:
We are seeking an Accounts Receivable Clerk to support our finance team by processing invoices, posting payments, and maintaining accurate records. The ideal candidate will have a strong eye for detail and the ability to manage multiple tasks in a fast-paced environment.

Responsibilities:

• Prepare and issue customer invoices.
• Record daily receipts and payments in the accounting system.
• Match payments with corresponding invoices.
• Maintain up-to-date records of receivables.
• Assist with month-end reconciliations.

Requirements:

• High school diploma or associate degree in accounting or business.
• Strong attention to detail and accuracy.
• Basic proficiency in Microsoft Excel and accounting software.
• Excellent organizational and time management skills.

Sample 2: Accounts Receivable Specialist

Job Summary:
Our company is hiring an Accounts Receivable Specialist to manage billing, collections, and customer account reconciliation. The candidate should be proactive, customer-focused, and skilled in accounting software.

Responsibilities:

• Manage end-to-end billing and collections process.
• Generate monthly AR aging reports and analyze overdue accounts.
• Handle customer inquiries and resolve payment disputes.
• Assist with month-end close and financial reporting.
• Work with sales and finance teams to streamline credit and billing processes.

Requirements:

• Bachelor’s degree in accounting, finance, or related field.
• 2+ years of accounts receivable experience.
• Proficiency with ERP/accounting software (e.g., SAP, Oracle, QuickBooks).
• Strong communication and negotiation skills.

Accounts Receivable Qualifications & Requirements

When writing an accounts receivable job description, it’s critical to include the necessary qualifications. These requirements ensure that candidates have the right background and skillset for the role.

1. Educational Requirements

• Entry-Level (Clerk/Assistant):
  • High school diploma or associate degree in accounting, business, or finance.
• Mid-Level (Specialist/Analyst):
  • Bachelor’s degree in accounting, finance, business administration, or related field.
• Senior-Level (Manager/Supervisor):
  • Bachelor’s degree required; MBA or master’s degree preferred.

Apply Now For UAE

2. Professional Certifications (Optional but Valuable)

• CPA (Certified Public Accountant): Strongly valued in the U.S.
• CMA (Certified Management Accountant): Ideal for those aiming for managerial positions.
• ACCA (Association of Chartered Certified Accountants): Popular in global finance markets.
• CFA (Chartered Financial Analyst): Useful for AR analysts moving toward financial planning roles.

3. Experience Requirements

• Entry-Level: 0–2 years of accounting or finance experience.
• Mid-Level: 2–5 years of AR or accounting experience.
• Senior-Level: 5–10+ years, including leadership roles.

4. Key Skills Employers Expect

• Knowledge of accounting principles (GAAP/IFRS).
• Familiarity with accounting software (SAP, Oracle, QuickBooks, Xero).
• Strong Excel skills for reporting and reconciliation.
• Excellent communication, negotiation, and customer service skills.
• Ability to manage multiple tasks under tight deadlines.

Accounts Receivable Salary Insights

Salaries for accounts receivable professionals vary widely depending on geography, industry, company size, and experience level. Below are typical salary ranges and influencing factors.

Average Salaries by Region

• United States:
  • AR Clerk: $35,000 – $45,000 annually
  • AR Specialist: $45,000 – $65,000 annually
  • AR Manager: $70,000 – $95,000 annually
• United Kingdom:
  • Clerk/Specialist: £22,000 – £35,000 per year
  • Analyst/Manager: £40,000 – £55,000 per year
• Australia:
  • Specialist: AUD $60,000 – $85,000 per year
  • Manager: AUD $90,000 – $120,000 per year
• Canada:
  • Specialist: CAD $45,000 – $65,000 per year
  • Manager: CAD $75,000 – $100,000 per year
• Middle East (UAE, Saudi Arabia, Qatar):
  • Specialist: AED 80,000 – AED 120,000 annually
  • Manager: AED 140,000 – AED 200,000 annually

Factors Influencing Salary

1. Experience Level: Senior AR professionals command higher pay due to their expertise in credit management and team leadership.
2. Industry: Finance, healthcare, and technology firms often pay more than retail or non-profits.
3. Company Size: Larger companies with complex AR systems typically offer higher compensation.
4. Certifications: CPA, CMA, or ACCA credentials can significantly increase earning potential.
5. Geographic Location: Salaries are generally higher in major financial hubs such as New York, London, Sydney, or Dubai.

Pro Tip for Job Seekers: Highlighting measurable achievements—such as reducing Days Sales Outstanding (DSO) or implementing automation—can help you negotiate better pay.

Best Practices in Accounts Receivable Management

High-performing AR teams don’t just collect payments—they optimize processes to strengthen cash flow and minimize risk. Here are some best practices:

1. Establish Clear Credit Policies

• Define payment terms (e.g., Net 30, Net 60) before engaging with customers.
• Assess customer creditworthiness using credit checks.
• Require deposits or partial payments for high-risk accounts.

2. Automate Invoicing and Collections

• Use AR automation software to reduce manual errors and speed up processes.
• Schedule automatic reminders for upcoming or overdue payments.
• Implement electronic payment options (credit card, ACH, PayPal, etc.).

3. Monitor AR Metrics Regularly

• Days Sales Outstanding (DSO): Measures average collection period.
• AR Aging Report: Identifies overdue invoices by time buckets.

4. Improve Customer Communication

• Send invoices promptly and follow up professionally.
• Resolve disputes quickly to avoid delayed payments.
• Build strong relationships that encourage customers to prioritize your invoices.

5. Train and Empower the AR Team

• Regular training on accounting software and compliance.
• Cross-functional collaboration with sales and customer service.
• Encourage problem-solving and proactive collection strategies.

6. Align AR with Business Strategy

• Share AR insights with leadership for better cash flow forecasting.
• Use AR data to identify customer trends and adjust credit policies.
• Ensure AR practices support long-term customer retention.

australia Jobs Apply Now

Accounts Receivable Interview Questions

For both job seekers and employers, interviews are an opportunity to assess whether a candidate is a good fit. Below are some commonly asked technical, behavioral, and situational questions.

Technical Questions

1. How do you handle the reconciliation of AR accounts?
2. Which accounting software systems have you used?
3. What methods do you use to calculate Days Sales Outstanding (DSO)?
4. Can you explain the difference between AR and bad debt?
5. How do you ensure compliance with GAAP or IFRS in AR processes?

Read More : Find the Right Job Sector

Behavioral Questions

1. Tell me about a time when you dealt with a difficult customer regarding payment.
2. How do you prioritize tasks when handling a high volume of invoices?
3. Describe a situation where you identified and corrected an invoicing error.
4. How do you handle stress when payment deadlines are tight?

Situational Questions

1. If a key client refuses to pay an overdue invoice, how would you handle the situation?
2. Envision uncovering a discrepancy of $50,000 in accounts receivable records.
3. What steps would you take?
4. How would you improve the AR process if your company’s DSO increased significantly?

Tip for Employers: Look for candidates who not only have technical knowledge but also demonstrate problem-solving skills and customer-focused approaches.

Tip for Candidates: Use the STAR method (Situation, Task, Action, Result) when answering behavioral questions to provide clear and structured responses.

Conclusion

The accounts receivable job description highlights much more than just invoicing and collections—it reflects a role central to a company’s financial success. AR professionals safeguard cash flow, reduce risks of bad debt, maintain customer trust, and provide critical insights for decision-making.

In today’s fast-paced business environment, organizations need skilled accounts receivable clerks, specialists, analysts, and managers who can combine technical expertise, analytical ability, and interpersonal skills. These professionals ensure that every dollar earned is collected efficiently, allowing businesses to grow and operate smoothly.

FAQs

What does an accounts receivable job involve?

It involves issuing invoices, tracking payments, managing collections, reconciling customer accounts, and ensuring accurate financial reporting. AR professionals also communicate with customers to resolve billing disputes and support cash flow management.

Is accounts receivable a good career?

Yes. Accounts receivable offers stable job opportunities, competitive salaries, and clear career advancement. It is also an excellent stepping stone into broader finance or accounting roles such as credit management, financial analysis, or controller positions.

What is the difference between accounts receivable and accounts payable?

• Accounts Receivable (AR): Money customers owe to the business.
• Accounts Payable (AP): Money the business owes to its suppliers.
  Both are crucial but opposite components of a company’s financial health.

Do you need a degree for AR jobs?

Not always. Entry-level positions like AR clerks may only require a high school diploma or associate degree. However, mid-to-senior roles (specialist, analyst, manager) typically require a bachelor’s degree in accounting, finance, or business. Certifications like CPA, CMA, or ACCA can boost career growth.

What are the key skills needed for accounts receivable?

• Technical: Accounting software, Excel, financial reporting.
• Analytical: Data analysis, credit risk assessment, reconciliation.
• Soft Skills: Communication, negotiation, attention to detail, time management.

Which industries hire accounts receivable professionals?

Almost all industries require AR specialists, including:

• Healthcare
• Retail & e-commerce
• Manufacturing
• Banking & finance
• Real estate & construction
• Technology & SaaS
• Professional services (legal, consulting, marketing)

What are common metrics in accounts receivable?

• Days Sales Outstanding (DSO): Measures how quickly receivables are collected.
• Aging Report: Classifies invoices based on the duration they have remained unpaid.
• Collection Effectiveness Index (CEI): Evaluates the effectiveness of collection activities.

Is it possible for accounts receivable positions to progress to senior finance roles?

Yes. With experience and additional certifications, AR professionals can move into roles such as Credit Manager, Finance Manager, Controller, or even CFO.

How do AR professionals contribute to business success?

They ensure consistent cash flow, minimize bad debts, maintain accurate records, and provide insights into customer behavior—all of which are vital for business planning and growth.

What is the future of accounts receivable?

Automation and AI are streamlining invoice processing, reminders, and reporting. However, the role of AR professionals will continue to focus on relationship management, strategic collections, and financial analysis—areas where human judgment is essential.

Apply Now For India