How to Be Accounts Receivable Analyst - Job Description, Skills, and Interview Questions

May 30, 2022 / 5 Minutes Read / By Albert

How to Become

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Accounts receivable analysts are responsible for managing accounts receivable and cash flow, which can have a significant effect on a business's overall performance. They monitor the receivables ledger, ensure timely payments, investigate customer disputes, and maintain accurate records. As a result of their work, companies are able to reduce the amount of uncollected debt, minimize interest or bad debt expenses, and improve their cash flow. In addition, accounts receivable analysts may work with other departments such as sales and collections to ensure company policies and procedures are being adhered to, and provide guidance on accounting issues.

Steps How to Become

Earn a Bachelor's Degree. A bachelor's degree in accounting, finance, business administration, or economics is a great starting point for becoming an accounts receivable analyst. Courses in accounting, auditing, business law, and financial analysis are especially useful.
Gather Experience. Employers may prefer candidates with some experience in the field. Consider internships or entry-level positions at accounting firms or other organizations that use accounts receivable analysts.
Improve Computer Skills. Accounts receivable analysts often need to manage large amounts of data. Well-developed computer skills can help you be successful in this position. Consider taking courses in spreadsheet and database software systems such as Microsoft Excel and Access.
Obtain Certifications. Professional certifications can demonstrate your commitment to the profession and help you stand out from other applicants. Consider earning a Certified Accounts Receivable Professional (CARP) certification from the Institute of Professional Financial Managers (IPFM).
Apply for Jobs. With your education, experience, and certifications in hand, you can apply for jobs as an accounts receivable analyst. Many organizations advertise job openings on job boards, so be sure to search for positions that match your qualifications.

Accounts receivable analysts are highly skilled professionals who are responsible for the accurate and timely collection of payments from clients. These professionals are capable of making sound business decisions based on the analysis of financial data. The effective management of accounts receivable is essential for a companys profitability and cash flow.

The ability to accurately track and analyze accounts receivable data is critical to ensure that payments are received on time, as well as to identify any potential issues that may arise. This requires an analyst to be detail-oriented and have a good understanding of the accounting and financial principles involved. In addition, these professionals must possess strong problem-solving and communication skills in order to effectively resolve any customer disputes or discrepancies.

When accounts receivable analysts are skilled and capable, it can lead to increased customer satisfaction, improved cash flow, and higher profits for the company.

You may want to check Senior Account Executive, General Accountant, and Chartered Accountant for alternative.

Job Description

Perform collection activities on delinquent accounts
Perform customer service activities such as answering customer inquiries, issuing credits, and resolving customer disputes
Analyze customer accounts and create aging reports
Prepare and process invoices for customers
Reconcile customer accounts
Maintain accurate customer account information in the accounting system
Monitor accounts receivable activity for trends
Investigate and resolve billing discrepancies
Prepare account reconciliations and journal entries
Assist with the month-end close process
Propose and implement process improvement initiatives
Assist with other duties as required

Skills and Competencies to Have

Strong analytical and problem-solving skills
Knowledge of accounts receivable processes
Excellent written and verbal communication skills
Proficiency in computer applications (such as Microsoft Office, accounting software, etc. )
Ability to work independently and collaboratively as part of a team
Highly organized and detail-oriented
Ability to prioritize tasks and meet deadlines
Knowledge of bookkeeping and accounting principles
Ability to maintain accurate and complete records
Understanding of internal controls and audit requirements

Accounts Receivable Analysts play a vital role in ensuring businesses run smoothly. Their job involves tracking and managing customer payments, analyzing data, preparing reports, and providing customer service. This requires strong analytical and communication skills, as well as an in-depth understanding of accounting processes and procedures.

In addition, these professionals must possess excellent organizational skills, critical thinking abilities, and the ability to recognize trends in customer payment patterns. Having these skills can help Accounts Receivable Analysts make sure that customer payments are tracked accurately and in a timely manner. this helps businesses maintain a healthy cash flow, keep customers happy, and remain profitable.

Accounts Payable Supervisor, Trust Accountant, and Investment Accountant are related jobs you may like.

Frequent Interview Questions

What experience do you have in accounts receivable and collections?
Describe a successful accounts receivable process you have implemented.
How do you handle customer inquiries and complaints?
What systems and software have you used to manage accounts receivable?
How do you ensure accuracy in accounts receivable records?
Explain the importance of maintaining strong relationships with customers.
How do you handle overdue payments and delinquent accounts?
What strategies do you use to reduce accounts receivable balances?
Describe how you handle difficult conversations with customers.
What are your thoughts on automated accounts receivable processes?

Common Tools in Industry

Microsoft Dynamics GP. A comprehensive enterprise resource planning (ERP) solution that helps businesses manage their financials, operations, and supply chain. (Example: Accounts Receivable Analyst tracking customer payments and creating invoices. )
Microsoft Excel. A spreadsheet program used to organize, analyze, and store data. (Example: Accounts Receivable Analyst tracking customer payments, creating invoices, and generating reports. )
Quickbooks. An accounting software used to manage customers, vendors, and invoices. (Example: Accounts Receivable Analyst reconciling payments received and creating invoices for customers. )
Salesforce. A customer relationship management (CRM) solution used to track customer data and analyze customer trends. (Example: Accounts Receivable Analyst using Salesforce to view customer payment history and identify payment trends. )
Bill. com. An automated accounts payable and receivable solution that helps businesses streamline their financial processes. (Example: Accounts Receivable Analyst using Bill. com to automate invoice processing and track customer payments. )

Professional Organizations to Know

American Institute of Professional Bookkeepers (AIPB)
Association for Financial Professionals (AFP)
Institute of Financial Operations (IFO)
National Association of Credit Management (NACM)
The Institute of Financial Accountants (IFA)
Association of Government Accountants (AGA)
International Accounts Payable Professionals (IAPP)
Accounts Receivable Management Association (ARMA)
International Accounts Receivable Professionals (IARP)
National Association for Accounts Receivable Management (NAARM)

We also have Accounts Receivable Associate, Bank Accountant, and Junior Account Representative jobs reports.

Common Important Terms

Accounts Receivable. A type of asset that is a record of money owed by customers for goods or services purchased on credit.
Credit Management. The process of managing a companys accounts receivable and credit policies.
Credit Terms. The terms of payment set out in a credit agreement between a customer and a supplier.
Collections. The process of collecting payments from customers who have outstanding balances.
Credit Risk. The risk of financial loss due to a customers inability or unwillingness to pay their accounts receivable balance.
Accounts Payable. A type of liability which is money owed to suppliers for goods or services purchased on credit.
Reconciliation. The process of comparing two sets of records in order to ensure accuracy and completeness.
Write-off. A reduction in the value of an asset or liability due to an accounting entry.
Bad Debt. An account receivable that cannot be collected from the customer.
Aging Report. A report that provides information on the age of accounts receivable balances.

Frequently Asked Questions

What is an Accounts Receivable Analyst?

An Accounts Receivable Analyst is a professional who is responsible for managing the accounts receivable process of an organization. This includes monitoring customer payments, researching and resolving billing issues, and maintaining accurate records of invoices and payments.

What skills are needed to be a successful Accounts Receivable Analyst?

A successful Accounts Receivable Analyst must possess strong organizational, analytical and problem-solving skills. They should also have a good understanding of accounting principles, financial management and customer service.

What are the primary duties of an Accounts Receivable Analyst?

Primary duties of an Accounts Receivable Analyst include invoicing customers, monitoring customer accounts, reconciling payments and resolving discrepancies, preparing reports and communicating with customers.

What qualifications are required to become an Accounts Receivable Analyst?

To become an Accounts Receivable Analyst, one must possess at least a bachelor's degree in accounting or finance. A professional certification such as the Certified Accounts Receivable Professional (CARP) is also beneficial.

What are some of the challenges faced by an Accounts Receivable Analyst?

Some of the challenges faced by an Accounts Receivable Analyst include dealing with delinquent accounts, maintaining accurate records, and staying up to date with changing regulations and policies.