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

Jul 2, 2020 / 6 Minutes Read / By Albert

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The Accounts Receivable Specialist plays an important role in the financial operations of a business. This specialist is responsible for ensuring that payments are received from customers in a timely manner, which directly affects the cash flow of the organization. When customers fail to pay their invoices on time, it can cause businesses to experience severe financial losses, resulting in delayed payroll and other expenses.

To prevent this, Accounts Receivable Specialists must have a strong understanding of invoicing, collections, and customer service. They must also possess excellent communication skills to be able to effectively negotiate payment plans with customers and resolve any disputes that may arise.

Steps How to Become

Obtain a high school diploma or equivalent. A high school diploma or GED is typically the minimum educational requirement for any accounting position.
Consider pursuing an associate or bachelors degree in accounting or a related field. An associate degree program typically takes two years to complete and will provide students with the basic knowledge and skills to work in an accounting environment. A bachelors degree program will usually take four years and provide a more in-depth understanding of accounting principles and practices.
Gain experience in accounting. Working as an intern or volunteer in an accounting department can provide valuable experience and insight into the field. Additionally, many employers look for individuals with at least some experience in accounting when hiring for accounts receivable positions.
Obtain certification in accounts receivable. Professional certification is available from the Institute of Professional Bookkeepers, the Institute of Certified Professional Accountants, and other professional organizations. This certification demonstrates knowledge and competency in accounts receivable, and can make a job seeker more attractive to potential employers.
Look for accounts receivable specialist positions. Potential employers may include banks, government agencies, accounting firms, and other organizations that provide accounting services. Job postings can be found on job boards, in local newspapers, and on company websites.
Submit a resume and cover letter to potential employers. Be sure to highlight any experience or certifications you may have that are relevant to accounts receivable positions.
Prepare for interviews by researching the company and having examples of your work ready to demonstrate your qualifications.
Accept an offer of employment as an accounts receivable specialist. Once you have been hired, continue to develop your skills to ensure success in the role.

The Accounts Receivable Specialist needs to have strong analytical, mathematical, and organizational skills to be successful in the role. They must be detail-oriented and able to accurately record and track financial information. they must have excellent communication skills to effectively work with clients and vendors to ensure timely payment of invoices and resolve any discrepancies.

Furthermore, they must be proficient in accounting software and have the ability to make use of technology to speed up the collection process. These skills make the Accounts Receivable Specialist skilled and competent for the job, allowing them to manage accounts receivable efficiently and effectively.

You may want to check Investment Accountant, Account Executive, and Accounting Director for alternative.

Job Description

Ensure timely collection of receivables from customers.
Contact customers regarding past due invoices and maintain a thorough understanding of the companys credit policy.
Monitor accounts to identify outstanding debts and initiate collection efforts.
Prepare and send monthly statements to customers.
Prepare and maintain customer records and accounts in an accurate and organized manner.
Prepare and process credit memos, refunds, and other adjustments as needed.
Monitor customer accounts for non-payment and delayed payment, investigate and resolve any discrepancies or misapplied payments.
Research and resolve customer inquiries related to billing issues, account information, and payment history.
Reconcile customer accounts and review all account activity for accuracy.
Generate and review reports for aging receivables; take appropriate action to collect payments.
Maintain compliance with company policies and procedures related to accounts receivable.
Coordinate with accounting department to ensure accurate financial reporting.
Follow up with customers on overdue invoices and coordinate with sales team to obtain payment information.
Assist with other accounting and administrative functions as needed.

Skills and Competencies to Have

Knowledge of accounting principles and practices
Strong customer service skills
Ability to analyze and interpret financial data
Strong communication, problem-solving and organizational skills
Proficiency in Microsoft Office applications
Knowledge of billing systems and procedures
Ability to work independently and manage multiple tasks simultaneously
Ability to handle confidential information with discretion
Ability to build relationships with customers and internal stakeholders
Ability to stay organized and meet deadlines

Accounts Receivable Specialists are responsible for managing accounts receivable, and it is essential that they possess strong organizational and administrative skills. They must be able to accurately enter and update customer information, including invoices and payment terms, in order to ensure that accounts receivable are accurate and up to date. Excellent communication skills are also essential to effectively deal with customers, both in person and over the phone, to answer questions, resolve discrepancies and ensure payments are received on time.

Knowledge of accounting principles and procedures is also essential, as Accounts Receivable Specialists must be able to accurately assess and process payments and develop effective strategies to collect past due payments. Finally, computer literacy is a must as Accounts Receivable Specialists must be able to use various software applications, such as spreadsheets and databases, to manage accounts receivable. Without these skills, Accounts Receivable Specialists would not be able to effectively carry out their duties, leading to negative financial consequences for the business.

Chief Financial Officer (CFO), Account Manager, and Senior Account Representative are related jobs you may like.

Frequent Interview Questions

What experience do you have working with Accounts Receivable?
Describe a situation where you had to resolve a conflict with a customer regarding an outstanding balance.
How do you handle working with multiple customers and deadlines?
What strategies do you use to ensure timely payment from customers?
How do you ensure accuracy in your work?
Describe your experience with using different accounting software.
How do you stay up to date on changes in accounting regulations?
What have you done to reduce outstanding receivables?
What methods do you use to collect overdue payments?
How do you build relationships with customers to improve accounts receivable?

Common Tools in Industry

Accounting Software. Used to manage financial transactions such as accounts receivable, accounts payable, and general ledger entries. (eg: QuickBooks)
Invoicing Software. Used to generate invoices, track payments, and manage customer accounts. (eg: FreshBooks)
Collection Software. Used to automate and streamline the collection process, including tracking customer amounts due and sending follow-up communications. (eg: Collectly)
Credit Card Processing. Used to process credit card payments and securely store customer information. (eg: Stripe)
Reporting Software. Used to generate reports from financial data, such as aged receivables and accounts receivable aging reports. (eg: Zoho Reports)

Professional Organizations to Know

American Institute of Certified Public Accountants (AICPA)
National Association of Credit Management (NACM)
International Association of Credit and Collection Professionals (IACCP)
Association for Financial Professionals (AFP)
National Association of Professional Accounts Receivable Specialists (NAPARS)
International Accounts Receivable Professionals (IARP)
Accounts Receivable Management Association (ARMA)
The Institute of Financial Operations (IFO)
Institute of Certified Credit Executives (ICCE)
Accounts Receivable & Credit Professionals International (ARCPI)

We also have Junior Accountant, Audit Accountant, and Chartered Accountant jobs reports.

Common Important Terms

Accounts Payable. Accounts payable is the amount of money that a company owes to its vendors, suppliers, and other creditors for goods or services purchased on credit.
Accounts Receivable Aging Report. An accounts receivable aging report is a document that shows the total amount of money a company is owed for goods or services provided, broken down by age.
Invoice. An invoice is a document sent to a customer for goods or services purchased on credit. It typically contains the date of purchase, a description of the goods or services purchased, the amount due, and payment instructions.
Collection Letter. A collection letter is a document sent to a customer who has not paid an invoice or other debt in a timely manner. It typically includes details about the debt, payment instructions, and a deadline for payment.
Credit Limit. A credit limit is the maximum amount of money that a customer can borrow from a vendor or creditor. It is typically based on the customers creditworthiness and is set by the lender.
Credit Terms. Credit terms are the terms under which a customer can borrow money from a lender or vendor. Terms typically include the interest rate, repayment schedule, and any fees or penalties associated with late payments.
Credit Memo. A credit memo is a document sent to a customer to cancel an invoice or reduce its balance. It typically includes details about the cancellation or reduction as well as instructions for how the customer should proceed with payment.

Frequently Asked Questions

What is an Accounts Receivable Specialist?

An Accounts Receivable Specialist is responsible for managing the collection of payments from customers and ensuring that all customer accounts are up to date.

What tasks does an Accounts Receivable Specialist typically perform?

An Accounts Receivable Specialist typically performs tasks such as issuing invoices, tracking payments, monitoring accounts for past due balances, resolving billing disputes, and maintaining records of customer payments.

What qualifications are needed to become an Accounts Receivable Specialist?

To become an Accounts Receivable Specialist, individuals typically need to have experience in the field of accounting and finance, as well as strong organizational and communication skills. A degree in accounting or finance may also be beneficial.

What software do Accounts Receivable Specialists use?

Accounts Receivable Specialists may use accounting software such as QuickBooks or Xero to manage customer accounts and process payments. They may also use spreadsheets to track customer payments and generate reports.

How much money do Accounts Receivable Specialists make?

According to the U.S. Bureau of Labor Statistics, the median annual wage for Accounts Receivable Specialists was $45,630 in 2019. Wages may vary depending on experience, location, and employer.