Accounts receivable duties: what they are and how to excel

Accounts receivable (AR) turns sales into cash. Done well, it protects working capital, keeps customer relationships strong, and improves financial reporting. Below is a practical, readable guide to the most important accounts receivable duties, how AR roles differ, and the skills and qualifications that make AR professionals indispensable.

What “accounts receivable duties” actually cover

Duties include:

• Invoicing and billing in a timely manner, based on contracts, price lists, and delivery data.
• Collecting payment via checks, ACH, wire, and credit card, then maintaining accurate cash application records.
• Reconciling customer accounts to resolve short-pays, overpays, and unapplied cash in a timely manner.
• Managing outstanding payments using aging reports and follow-up sequences.
• Setting and reviewing credit limits in line with policy and risk signals.
• Handling disputes and deductions with documentation and cross-functional escalation.
• Producing AR analytics: aging, DSO, bad-debt trends, and forecasted cash receipts for financial reporting.
• Supporting audits and compliance through clean processes and evidence trails.
• Continuous improvement of workflows and automation in the accounts receivable department.

Common AR roles (and how they work together)

• Accounts receivable manager (often listed as “AR Manager” or manager accounting):
owns AR strategy, policy, KPIs (DSO, CEI), team leadership, and cross-functional alignment with Sales, Operations, and Treasury.
• Accounts receivable officer: enforces credit policy, sets credit limits, oversees portfolio risk, and signs off on escalated settlements or payment plans.
• Accounts receivable specialists: drive day-to-day collections, cash application, dispute resolution, and portal workflows; they are frontline accounts receivable professionals.
• Accounts receivable clerks: focus on data entry, invoice generation, document matching, and routine reconciliations.

Tip: Smaller companies combine these. Larger firms split them across credit, cash application, collections, and dispute/claims.

A day in AR: from order to cash

1. Pre-invoice checks
• Verify pricing, tax, quantities, and delivery status.
• Confirm PO and contract terms for the accounts receivable job descriptions that require portal uploads or reference numbers.

2. Invoicing
• Issue invoices daily; avoid month-end bottlenecks.
• Include clear due dates, payment methods, and escalation contacts to aid customer payments.

3. Cash application
• Match remittances to invoices, including consolidated wires.
• Use lockbox files or ERP rules to reduce manual keying and speed the accounts receivable role.

4. Collections
• Work the aging: 0–30, 31–60, 61–90, 90+ days.
• Prioritize by balance, risk, and strategic accounts. Keep a courteous, consistent cadence on customer accounts.

5. Dispute management
• Capture root cause (pricing, freight, shortages, contract).
• Loop in Sales/CS to solve the issue without harming the relationship.

6. Credit control
• Monitor risk signals and adjust credit limits.
• Pause shipments for chronic delinquencies after business sign-off.

7. Reporting & close
• Run aging, unapplied cash, write-off, and forecast reports.
• Reconcile subledger to GL; document controls for audit.

Skills and qualifications that stand out

• Core skills: attention to detail, clear communication, negotiation, empathy, and time management.
• Technical: ERP proficiency (NetSuite, SAP, Oracle), e-billing portals, payment gateways, and spreadsheet modeling.
• Analytics: aging health, cohort slippage, promise-to-pay reliability, and cash forecasting.
• Compliance: credit policy adherence, SOX-friendly controls, and evidence retention.
• Business savvy: know how terms affect margin, cash, and customer lifetime value—crucial for manager accounting and senior roles.

Typical qualifications (vary by role):

• Clerk: HS diploma/GED; data accuracy and ERP familiarity.
• Specialist: AA/BA in accounting/finance preferred; strong reconciliation background.
• Officer/Manager: BA/BS required; experience in credit risk, policy, leadership, and financial reporting.

Simple playbook to improve AR this quarter

1) Tighten invoicing clarity

• Use line-level detail and contract references.
• Enable one-click credit card and ACH payments on every invoice.

2) Segment collections work

• Strategic accounts get named owners; long-tail accounts move through automated nudges.
• Standardize scripts and templates so every contact happens on schedule and in a timely manner.

3) Kill unapplied cash

• Require remittance detail in vendor instructions.
• Auto-match by amount, date, and customer; review exceptions daily.

4) Manage credit proactively

• Review credit limits quarterly (or after major disputes).
• Flag customers with deteriorating payment patterns and adjust terms early.

5) Measure what matters

• DSO (days sales outstanding) and CEI (collection effectiveness index).
• Bad debt %, write-offs, and dispute cycle time.
• % invoices with complete data at first issue (a “first-time-right” metric for maintaining accurate records).

Example job descriptions you can adapt

Accounts Receivable Specialist (sample)

• Purpose: Convert billings to cash while protecting relationships.
• Key duties include: invoice generation, collecting payment, posting receipts, dispute handling, follow-ups on outstanding payments, and weekly reporting.
• Skills and qualifications: ERP proficiency, Excel, communication, attention to detail, and familiarity with customer portals.
• Success measures: DSO reduction, aging improvement, and low unapplied cash.

Accounts Receivable Officer (sample)

• Purpose: Control risk and optimize terms.
• Key duties include: portfolio reviews, credit limits administration, policy enforcement, escalated collections, and financial reporting support.
• Skills and qualifications: credit analysis, contract literacy, ERP analytics, stakeholder management.

Accounts Receivable Clerk (sample)

• Purpose: Accurate posting and documentation.
• Key duties include: invoice prep, cash posting, file maintenance, and reconciliation.
• Skills and qualifications: data accuracy, ERP speed, strong documentation habits—hallmarks of great accounts receivable clerks.

Collaboration patterns that speed up cash

• Sales: align on terms, returns, and deduction thresholds; agree on a single escalation path.
• Customer Success: share upcoming expirations and renewal dates so outreach feels helpful, not punitive.
• Operations & Logistics: confirm delivery proofs quickly to close disputes.
• Controller & FP&A: align AR analytics with cash-flow forecasting and month-end close.
• IT/Automation: connect order, invoice, and payment data so AR sees “one truth”.

Tools that help (and why)

• eInvoicing + customer portals: fewer missing POs, faster acceptance.
• Payment gateways (cards, ACH, wires): remove friction; let customers self-serve.
• Cash-app automation: remittance OCR and matching rules to keep exceptions small.
• Dispute workflows: reason codes, SLAs, and audit trails.
• Dashboards: aging heatmaps, collector worklists, promise-to-pay tracking.

Frequently asked questions

Is AR an accounting job?
Yes. It relies on accounting principles and directly affects cash, revenue timing, and financial reporting quality.

What’s the difference between a specialist and a clerk?
Specialists handle customer contact, disputes, and strategy execution. Clerks focus on entry, posting, and documentation—both are accounts receivable professionals.

Which soft skill matters most?
Attention to detail—errors in invoices or posting create churn and rework. Close behind: empathy and negotiation for smoother customer payments.

AR metrics cheat sheet

• DSO: Lower is better; trend it by customer segment.
• Aging distribution: % current, 1–30, 31–60, 61–90, 90+.
• Right-first-time invoices: target >95%.
• Promise-to-pay kept: leading indicator of cash predictability.
• Dispute cycle time: aim to resolve within 10 business days.
• Unapplied cash: keep near zero.

Copy-and-use AR checklist

• Invoices include PO, ship/delivery data, and due date.
• Multiple payment options (ACH, credit card).
• Weekly aging review and prioritized worklists.
• Documented dispute codes, owners, and SLAs.
• Quarterly credit limits review.
• Month-end tie-out: subledger = GL, no unreconciled variances.
• Dashboard for DSO, CEI, unapplied cash, dispute time.

Bottom line: Supercharge your team’s accounts receivable duties with Ledgeroo—the gamified, step-by-step way to master invoicing, collections, credit limits, and reporting fast. Our bite-sized lessons, hands-on practice, and real-world scenarios build the clarity, persistence, and process discipline AR work demands. Equip collectors, specialists, and managers with repeatable playbooks, data-driven decision skills, and confident customer communication—so cash comes in sooner and disputes get resolved quicker. Level up your AR performance with Ledgeroo and turn every invoice into predictable cash flow.