As you are entering the new financial year, there are lots of account-related issues you may face right now.  

But what should you do in this scenario, Who will collect and keep track of your cash/ accounts/ finances from the previous financial year?

Who will manage the tasks of the recovery of your funds?

Do not worry, an account receivable specialist will take care of recovering your money from your clients.

Puzzled, who is this?

Well, don’t panic, you’ll get to know who Accounts Receivable Specialists, what they do for your business.

Let’s start with what Accounts Receivable are 

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

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

Role of the Accounts Receivable Specialist in Your Business

The accounts receivable specialist is responsible for diligently managing business finance, ensuring timely payments and a healthy cash flow for the company.

AR are the pillars of any organization, you cannot think of any business running without cash. To ensure that your business does not stop or encounter any difficulties, especially in light of the current financial crunch, AR specialists put forth great effort to turn unpaid invoices into actual cash.

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

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 are 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.

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Meet Garima, an integral member of the Invedus editorial team. With three years of experience in crafting compelling narratives, she brings a wealth of expertise to our roster. Her mastery of technical content writing ensures clear and precise communication. Discover how she can elevate your brand's story with persuasive and captivating content.