How to Become Accounts Receivable Manager?

How to Become Accounts Receivable Manager?

How to Become Accounts Receivable Manager?
Saru NiraulaThu Nov 17 2022

The position of accounts receivable manager is intermediate. Their responsibilities include managing the organization's workforce and the accounts receivable department and collecting all payments on the company's behalf. 

Additionally, it entails duties including monitoring payment deadlines and company policy compliance. 

The Accounts Receivable Manager, who often reports to the Finance Manager, keeps track of income and ensures that payments are received and properly documented. 

This position frequently has many of the same duties as a credit manager. Learn more about Accounts Receivable Managers by reading this article.

Who is an Accounts Receivable Manager?

The account receivable manager organizes, posts, confirms, and records customer payments and other transactions linked to accounts receivable. 

Invoices are created following business procedures and sent to clients—upkeep and update client files, such as name or address changes, mergers, or postal addresses.

What are the roles and responsibilities of the Accounts Receivable Manager?

  • Responsible for obtaining customer payments and ensuring they are completed on schedule.
  • Oversees the company's accounts receivable department's workforce.
  • Establish regular deadlines for processing payments and accounts weekly and monthly.
  • Create periodic reports (monthly, quarterly, and annual) with payment flow projections.
  • Organize and supervise the processing of bills, records, and invoices while ensuring that quality is maintained throughout.
  • Make sure that all procedures are legal.
  • Effectively negotiate and resolve client non-payment issues.
  • Continually update and remain on top of industry best practices.
  • Ensuring optimal performance from the accounting team.
  • Keeps track of all payments made so that customers can support the business.

How to Become Accounts Receivable Manager? Qualifications

Accounting

For administrative reasons, customers frequently need help paying invoices. The accounting fundamentals should consequently be familiar to anyone working in accounts receivable.

Communication

The capacity to present knowledge in a way others can understand is communication. Accounts receivable managers may need to speak with staff members and clients on the phone or via email. Delaying messages clearly and delivering requested information depends on your ability to communicate. Writing emails and letters to customers and other businesses is another instance in which you employ your communication abilities.

Proficient in Office Packages

An accounts receivable manager needs to be trained in Microsoft Office. These programs, utilized in the workplace, include word processing, spreadsheet, and presentation software. These abilities enable you to make expertly written documents and presentations and to enter data into spreadsheets for analysis.

Invoicing

Making an invoice, a record that lists all costs and fees associated with a good or service is invoicing. Because they enable businesses to monitor their sales revenue and guarantee that customers pay for the services they receive, invoices are crucial. Additionally, it's critical to maintain precise records of invoices so that you can give your customers comprehensive information about their payments.

Consumer Assistance

Because an accounts receivable manager frequently deals with clients and consumers, customer service abilities are crucial. Excellent customer service abilities are a requirement for this role if you want to keep your business's reputation in good standing, develop client trust, and persuade customers to pay their bills on time. Among the customer service competencies are active listening, empathy, patience, and the capacity to diffuse situations.

Time Management

Time management is known as the capacity to schedule and carry out work in a way that guarantees you meet deadlines. Time management abilities are crucial for an accounts receivable manager since they enable you to ensure that your business receives payments on time and that person has access to the funds they want for their regular operations.

Other Skills

  • A high level of precision
  • Strong customer service skills and excellent attention to detail Ability to compute and handle accounting statistics
  • Basic knowledge of accounting concepts
  • Familiarity with forecasting, payroll, revenue, and budgets

Steps to Become a Successful Accounts Receivable Manager

Academic Requirements

  • A bachelor's degree in business administration, accounting, finance, or a related field.
  • A CPA certificate and five or more years of accounting expertise.
  • Experience in leadership positions and the ability to solve problems.
  • MS Office computer literacy and past expertise using General Ledger (Costpoint) software and other accounting programs.
  • BSc degree in Accounting or Finance.
  • Ability to accurately process numerical data.

Acquire more knowledge after high school

A bachelor's degree in finance, accounting, or a comparable discipline, a minimum of three years in an equal position. Strong typing, computer, and arithmetic skills, particularly with accounting software. Excellent research, problem-solving, communication, and time-management skills.

Experience (work and related fields)

A bachelor's degree in finance, accounting, or a comparable discipline, a minimum of three years in a relative position. Strong typing, computer, and arithmetic skills, particularly with accounting software. Excellent research, problem-solving, communication, and time-management skills.

Training (job or related field)

Accounts receivable managers typically hold business, accounting, or finance degrees. 24% of accounts receivable managers have an associate's degree, and 55% have a bachelor's.

Career

High salaries and reliable employment are two benefits of a career in account receivable management. People who appreciate management/leadership and working with numbers have the best career in this field. For accountants and auditors, it may be a beneficial approach to enhance their careers.

Employment areas

  • Companies
  • nonprofit organizations
  • schools
  • law firms
  • government sectors 
  • private sectors 

Job titles

  • Bookkeeping clerk.
  • Accountant. 
  • Financial analyst.
  • Business analyst.
  • Certified public accountant (CPA) 
  • Controller.
  • Accounting consultant. 
  • Chief financial officer (CFO)

Salary of Accounts Receivable Manager

Let us see the average annual salary of Accounts Receivable Manager in some popular countries.

Country

Annual Average Salary of Accounts Receivable Manager

Australia

$128,541 (AUD)/yr

Argentina

$ 3.141.481 (ARS)/yr

Belgium

74.404 € (EUR)/yr

Brazil

R$221.758 (BRL)/yr

Canada

$113,848 (CAD)/yr

China

¥369,802 (CNY)/yr

Costa Rica

₡19 708 165 (CRC)/yr

Denmark

597.666 kr. (DKK)/yr

Egypt

195,576 ج.م.‏ (EGP)/yr

Finland

67 051 € (EUR)/yr

France

64 206 € (EUR)/yr

Germany

75.351 € (EUR)/yr

Hong Kong SAR

HK$627,217 (HKD)/yr

India

₹24,40,295 (INR)/yr

Italy

59.392 € (EUR)/yr

Japan

¥8,872,872 (JPY)/yr

Malaysia

6 879 544 ₸ (KZT)/yr

Mexico

$579,290 (MXN)/yr

Netherlands

€ 72.217 (EUR)/yr

New Zealand

$113,350 (NZD)/yr

Poland

151 072 zł (PLN)/yr

Portugal

48 264 € (EUR)/yr

Russian Federation

1 546 839 ₽ (RUB)/yr

Switzerland

CHF 114'401 (CHF)/yr

Spain

59.226 € (EUR)/yr

Thailand

฿1,271,764 (THB)/yr

UK

£57,083 (GBP)/yr

Ukraine

554 475 ₴ (UAH)/yr

United Arab Emirates

245,953 د.إ.‏ (AED)/yr

United States

$113,091 (USD)/yr

Vietnam

542.447.447 ₫ (VND)/yr

Training Course for Accounts Receivable Manager

Let us talk about some degree to become a successful Accounts Receivable Manager.

Level

Program

   

    Diploma

Diploma in Accounting and Management Technology

DIPLOMA IN ACCOUNTING AND FINANCE

DIPLOMA OF ACCOUNTANCY

Diploma in Financial Management

Advanced Diploma in Accounting



   Bachelors

BSc in Accounting and Finance

BSc (Hons) Accounting and Finance (ACCA)

BSc (Hons) Accounting

Bachelor of Science in Accounting

BA Accounting

Bachelor in Accounting - Certified Managerial Accounting

Bachelor of Arts (Honours) Accounting and Finance (Top-up)

LSBF Singapore

BS in Accounting

Masters

Master Project Manager (MPM)

MSc Data Analytics and Finance

Master in Financial and Management Accounting

Master's Degree in Business Management Research, Marketing, and Accounting

MSc in Business Administration: Management Accounting and Control

MSc in Economics and Business Administration - Management Accounting

MPS in Management - Accounting Specialization

MSc Professional Accounting

 

Master in Accounting and Finance




      PHD

Ph.D. in Business Management

Ph.D. in Finance

Ph.D. in Project Manager

Ph.D. in Accounting Management

Ph.D. in Arts

Ph.D. in Economics

Pros and Cons of Becoming Accounts Receivable Manager

Working as an account receivable manager has many benefits, but with such advantages come great responsibilities. Read below about some advantages and disadvantages.

Advantages of becoming Accounts Receivable Manager

  • Improvement of cash position.
  • Easier to control money and working capital.
  • Improve accounts receivable management efficiency.
  • Make customer communication better.
  • Raise customer satisfaction and service.
  • Reduce administrative fees.
  • Reduce the time from sales to payment.
  • Minimize credit risk.

Disadvantages of becoming Accounts Receivable Manager

  • Based on cost and financial records.
  • Personal Bias.
  • Lack of expertise in and understanding of the relevant fields.
  • Preference for intuition in making decisions.
  • Management Accounting is only a Tool.
  • Wide-ranging scope.
  • Variables that can't be measured.

How to Become Accounts Receivable Manager: FAQs

What do accounts payable, and receivable employees do?

The Accounts Receivable employee plays a crucial role in the financial department's day-to-day operations and the upkeep of financial records. To keep the company's financial records accurate, they will oversee computing, categorizing, and documenting spending and revenue data.

How does one become an account receivable manager?

An individual contributor with five years of expertise in the relevant field is usually qualified to be an account payable manager. There may be a need for 1 to 3 years of supervised experience. A group of bookkeepers and accounts payable clerks is under the direction of an accounts receivable manager.

What are the accounts receivable journal entries?

An accounts receivable transaction gets recorded in the company's accounting records as an accounts receivable journal entry. To accurately record this financial activity, it is a necessary step. Sales for which there has been no payment are referred to in accounting as accounts receivable.

What is the account receivable process?

When a customer purchases a good or service, the typical accounts receivable procedure begins (think of accounts receivable as an "IOU"). It ends when the unpaid balance finally gets recovered. An accounts receivable workflow is the sequential step to record and collect the debt.

What are the goals and objectives for accounts receivable? 

Accounts receivable goals and objectives are concrete plans made by the management of businesses to advance, oversee, and uphold a productive system for collecting debts.

Why are accounts receivable net revenue?

Accounts receivables are regarded as assets since they show money owed rather than capital retained. It gets displayed on other financial accounts other than income. The money is represented as accounts receivable until the company receives payment for its good or service.

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