Introduction
Are you interested in a career in accounting? If so, an accounts receivable clerk position could be a great fit for you. Accounts receivable clerks play a vital role in any organization’s financial department, ensuring that customers pay their invoices on time. In this comprehensive guide, we will delve into the various job duties and responsibilities of an accounts receivable clerk.
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Processing Invoices
One of the primary responsibilities of an accounts receivable clerk is to process invoices. This involves reviewing sales orders and customer purchase orders to create invoices. Accounts receivable clerks also ensure that invoices are accurate and contain all necessary information, such as the customer’s name, address, and invoice number.
Verifying Customer Information
Before processing invoices, accounts receivable clerks must verify that customer information is correct. This includes checking the customer’s name, address, and contact information. Accounts receivable clerks also review customer credit history to determine if any special payment arrangements are required.
Calculating Invoice Amounts
Accounts receivable clerks are responsible for calculating invoice amounts. This involves multiplying the quantity of goods or services sold by the unit price. Accounts receivable clerks also add any applicable taxes or discounts to the invoice amount.
Maintaining Customer Accounts
In addition to processing invoices, accounts receivable clerks are also responsible for maintaining customer accounts. This involves tracking payments, issuing statements, and resolving any customer inquiries.
Tracking Payments
Accounts receivable clerks track payments received from customers. This involves recording the date of payment, the amount paid, and the payment method. Accounts receivable clerks also update customer accounts to reflect the payments received.
Issuing Statements
Accounts receivable clerks issue monthly statements to customers. These statements summarize the customer’s account activity, including invoices, payments, and any outstanding balances. Accounts receivable clerks also review statements for any errors or discrepancies.
Resolving Customer Inquiries
Accounts receivable clerks often serve as the first point of contact for customers with billing questions or inquiries. Accounts receivable clerks are responsible for resolving these inquiries promptly and efficiently.
Collections
In some organizations, accounts receivable clerks are also responsible for collections. This involves contacting customers who have overdue invoices and attempting to collect payment.
Making Collection Calls
Accounts receivable clerks make collection calls to customers who have not paid their invoices on time. During these calls, accounts receivable clerks attempt to determine why the invoice is overdue and work with the customer to establish a payment plan.
Negotiating Payment Arrangements
Accounts receivable clerks may negotiate payment arrangements with customers who are unable to pay their invoices in full. These arrangements may include extending the due date, reducing the amount of the invoice, or setting up a payment plan.
Other Responsibilities
In addition to the duties and responsibilities listed above, accounts receivable clerks may also be responsible for:
- Assisting with accounts payable and general ledger
- Preparing reports on accounts receivable activity
- Reconciling bank statements
- Maintaining filing systems
- Answering the phone and taking messages
Comparison Table: Accounts Receivable Clerk Job Duties and Competitors
| Task | Accounts Receivable Clerk | Competitor A | Competitor B |
|---|---|---|---|
| Process invoices | Yes | Yes | No |
| Maintain customer accounts | Yes | Yes | No |
| Collect payments | Yes | No | Yes |
| Issue statements | Yes | Yes | No |
| Resolve customer inquiries | Yes | Yes | No |
| Assist with accounts payable | Yes | No | No |
| Prepare reports | Yes | Yes | No |
| Reconcile bank statements | Yes | Yes | No |
| Maintain filing systems | Yes | Yes | No |
| Answer the phone | Yes | Yes | No |
Conclusion
Accounts receivable clerks play a vital role in any organization’s financial department. They are responsible for processing invoices, maintaining customer accounts, collecting payments, and resolving customer inquiries. If you are interested in a career in accounting, an accounts receivable clerk position could be a great fit for you.
Check out our other articles on accounting careers:
- What Does an Accounts Payable Clerk Do?
- How to Become an Accountant
- The Different Types of Accounting Jobs
FAQ about Accounts Receivable Clerk Job Duties
What are the main responsibilities of an Accounts Receivable Clerk?
Answer: The primary duties include processing customer payments, maintaining accounts receivable records, and resolving customer inquiries related to invoices and payments.
What are the essential skills for this role?
Answer: Strong attention to detail, proficiency in accounting software, excellent communication skills, and the ability to multitask effectively.
What education and experience are typically required?
Answer: An associate degree in accounting or business or equivalent work experience in an accounts receivable department.
Are there any industry-specific requirements?
Answer: Some industries may require additional knowledge, such as healthcare or manufacturing-specific accounting practices.
What are the potential career paths for an Accounts Receivable Clerk?
Answer: With experience and additional training, individuals can advance to roles such as Accounts Receivable Manager or Credit Analyst.
What are the common challenges faced by Accounts Receivable Clerks?
Answer: Dealing with delinquent accounts, handling customer disputes, and reconciling invoices and payments.
How can I improve my efficiency as an Accounts Receivable Clerk?
Answer: Use automation tools, prioritize tasks effectively, and communicate regularly with customers.
What software programs are commonly used in this role?
Answer: Accounting software such as QuickBooks, NetSuite, and SAP Business One.
What is the average salary range for an Accounts Receivable Clerk?
Answer: The salary range varies depending on experience, location, and industry, typically falling between $35,000 and $55,000 per year.
What are the key performance indicators (KPIs) for an Accounts Receivable Clerk?
Answer: Days Sales Outstanding (DSO), Accounts Receivable Turnover, and Customer Satisfaction Scores.
