What are the Duties of an Accounts Receivable Specialist?

Are you looking for a well-deserved and perfect accounts receivable specialist for your organization but are puzzled about what they will do for your business?

Then this article is for you. You will explore their duties for your company. Also, you will get the JD for his AR specialist role in this write-up. Which will help you identify their jobs and roles for your organization.

Additionally, how to hire the top AR experts for your company without risking a data breach and presenting reports on time. Also, with well-maintained bank accounts, timely retrieving cash from clients, providing proper resolution to customers, and more, all at very affordable prices.

Let’s Start with What Accounts Receivable are

Cash flow is a crucial aspect for almost all businesses, and accounts receivable specialists are essential in maintaining a steady stream of inbound capital.

Accounts receivable (AR) means how much money a company holds in lieu of the goods and services it offers to its clients or customers. In short, it’s a short-term loan the business extends to its clients.

Maintaining a healthy AR is important for a company’s financial well-being. Efficient AR management ensures a steady cash flow, allowing businesses to meet their obligations and invest in growth.

Role of the Accounts Receivable Specialist in Managing Cash For Your Business

An accounts receivable specialist manages incoming payments and ensures invoices are processed accurately and on time. They also address customer billing inquiries and resolve payment discrepancies.

AR specialists are the pillars of any organization, you cannot think of any business running without cash. They are working tirelessly to convert outstanding invoices into real cash so that your company will not halt or face any hurdles, especially because of the cash crunch.

Their efforts directly impact the company’s financial health and ability to meet its obligations. By ensuring efficient AR management, they prevent cash flow shortfalls and contribute to the company’s overall success.

Core Duties of an Accounts Receivable Specialist

Below are the duties that account receivable specialists do:

1. Updating and Maintaining the Billing System

The main responsibility of the AR specialist is to check whether the cash the company has to receive is on time or not. They need to check whether the amount is exactly what the company receives that is mentioned in the billing system, and if not, they approach the liable party and take feedback on it.

2. Follow Up on Collected Payments and Allocated Payments

The Accounts Receivable Specialist will inquire further with the other party regarding the matter of the allocated or collected payment. If the party is requesting an extension to pay their debts, then the AR specialist will have a further discussion with them and come to a resolution.

3. Processing Billing Collection, and Reporting Activities According to Deadlines

Accounts Receivable Specialists perform some tasks for their clients, like billing, collecting, and reporting activities accordingly. For example, if you are a dentist and see 500 patients on a daily average, AR will handle billing, monitor clinic collections, provide records in accordance with the balance sheet, and generate invoices. Additionally, if, in any case, there is a vendor who has not paid his dues to the clinic, then the AR specialist will take the discussion further regarding the clearance of dues. After having a fruitful discussion, the accounts receivable specialist will set the deadlines for their dues.

4. Generate and Review AR Aging to Ensure Compliance

Sometimes, it happens that the dealer promises to pay on a specific date but is not able to pay you. In this case, an accounts receivable specialist intervened and generated a deadline of 30, 60, or 90 days. Which is known as aging. After the aging generation, AR will review it at the decided aging deadline and review it for further proceeding.

5. Perform Account Reconciliations and Maintain Accounts Receivable Customer Files and Records

Accounts Receivable Specialists will perform the task of account reconciliation. This means they will compare the financial records, like general ledger accounts and bank statements, to ensure their accuracy and consistency. Once they are done with it, they maintain the accounts receivable customer files, record them, and make future strategies accordingly.

6. Process Cash and Receipts According to Established Protocols, and Prepare Bank Deposits.

After receiving payment from customers, the business does not retain that money on-site. This is where AR specialists come into play; they will collect the money and deposit it in the bank under the company’s account name. Following that, they processed cash and receipts in accordance with established protocols. Additionally, AR specialists also make payments on company bills, like electricity, maintenance, credit card bills, WiFi bills, and others.

7. Make Process Adjustments, Create a Recovery System, and Start the Collection Process

Accounts Receivable Specialists will make adjustments to company debts and ledgers once they gather the amount from all their clients and from any bank. Then, in this case, they make the adjustments from the company’s end. Also, they create a recovery system for those, who are not paying their debts to the company. For them, an AR specialist will make strategies for the company’s recovery and later start the collection process. Additionally, they will also monitor their customers’ account details for non-payments, delayed payments, and other irregularities. So that, when they perform account reconciliation, they have all the details of the mismatch in funds.

8. Accounts Receivable Specialists Develop a Recovery System and Initiate Collection Efforts

Account reconciliation is one of the most difficult tasks for AR specialists. To do this, they need to keep an eagle eye on every single transaction and maintain it, just like sitting on the fence. To make this recovery receivable, specialists investigate the main cause of the delay in payments at the customer end. And counsel them if they feel any difficulty in paying their dues. Additionally, they communicate with customers via phone, email, mail, and sometimes personally as well.

So, these are a few responsibilities out of many that accounts receivable specialists perform. However, to make you feel at ease and get well-informed about the duties of an AR specialist, we are providing you with a sample JD for an accounts receivable specialist for your firm.

Also Read: Hire Accounts Receivable Specialist – 7 Tips You Must Know

Accounts Receivable Specialist Job Description

We are on the lookout for an accounts receivable professional. Who assist us in maintaining the accounting department receive, process, and collect goods or services. In this role, you will review account information, correct discrepancies, and ensure that accounts are properly billed and that payments are collected.

You need to act as a proficient and meticulous researcher with exceptional communication and record-keeping abilities. Also, you have to keep a keen eye on detail orientation, be organized, and be self-motivated with strong math and computer skills.

Responsibilities of Accounts Receivable Specialist

It is the job of AR specialists to enter every cash entry into the system accurately and to keep the bookkeeping record up to date.

The following are the responsibilities of an AR Specialist:

Do deep research and maintain a hawk-eye on account reconciliation.
Carefully engaged in Processing and recording account transactions.
Get in touch with the Insurance Carrier frequently for timely process of claims.
Maintain the insurance documents to keep track record of claims. Also, no payment date should be missed.
Documents should be properly written off to avoid any miscommunication.
Must be able to perform administrative and clerical tasks, such as data entry, preparing invoices, sending bill reminders, filing paperwork, and contacting clients to discuss the status of their accounts.
Maintain and upkeep the date billing system.
Keenly monitor customer account details for non-payments, delayed payments, and other discrepancies in accounts.
Generate, manage, and review age analysis for better adherence.
Holds strong concept of mathematical and analytical skills.
Should be well-versed in handling Google Workspaces like Google Sheets, Google Analytics, and Google Docs.
Must have hands-on experience with QuickBooks Online and one of the commonly used accounting ERP systems, such as Oracle, SAP, and NetSuite.

Educational Qualification

You must have a Graduation Degree.
Must have handy experience in working with Quickbooks, ADP, Intuit, and Paychex.
Any Computer Degree or course or handy experience in Computer operation.
Must have relevant experience in accounts receivable (or accounts payable)

Worth Reading: Accounts Payable Accountant Job Description

To Wrap Up

The duties of an accounts receivable specialist are vital for the financial health of a business. They ensure the accurate and timely processing of invoices, maintain effective communication with clients, manage collections, and report on financial statuses. Their role is crucial in maintaining the cash flow and financial stability of a company.

If you are looking to enhance your financial operations with skilled professionals, consider Invedus Outsourcing. We offer offshore remote employee services that provide you access to a global talent pool. Our dedicated offshore accountants tare well-equipped to manage your financial needs efficiently, ensuring your business can thrive in a competitive market. Explore how Invedus Outsourcing can transform your business processes and boost your productivity.