What does an accounts receivable clerk do?

Posted by Fed Finance Canada in Our employment advice
Posted at 27/09/2023
What does an accounts receivable clerk do?
Accounts receivable clerks work within a company’s accounting department. Generally speaking, they record accounting information and manage payments. However, their tasks are much more extensive than this.

Before starting your job search for an accounts receivable clerk position, it is important to know the different tasks that this role encompasses. Similarly, this information will be useful when you prepare for your job interviews.

Our Fed Finance advisors list below the different job duties out of this accounting job. They are grouped into three categories: daily, weekly and monthly tasks.

Accounts receivable: definition

The term "accounts receivable" is a fundamental component of a company's financial accounting. It signifies the amount of money that a company anticipates receiving from its customers or third parties for the goods or services it has provided. Essentially, these are amounts that the company is entitled to collect. Accounts receivable are documented on the company's balance sheet as assets since they represent a future financial resource. They also play a vital role in assessing the company's financial well-being and its ability to generate cash flow.

Accounts receivable can take various forms, such as outstanding invoices, loans extended to customers, or advances provided to suppliers. Effectively managing accounts receivable is essential for a company's financial stability. This involves closely monitoring outstanding payments, following up with customers who are behind on payments, and implementing appropriate credit policies to minimize the risk of uncollectible debts.

Daily job duties of an accounts receivable clerk

On a daily basis, an accounts receivable clerk processes urgent information that requires almost immediate action. This includes the following tasks:

  • Preparing bills and invoices sent out to clients 

  • Maintaining accounts receivable records

  • Recording cash receipts 

  • Carrying out customer follow-ups

  • Answering customers’ questions

  • Managing customer relations

The accounts receivable clerk works alongside different teams within the company, including those responsible for sales, the warehouse and customer relationship management. They also often work directly with the chartered accountant.

Weekly job duties of an accounts receivable clerk 

In addition to this day-to-day work, the accounts receivable clerk must also perform essential weekly tasks. These tasks benefit the company and its customers and help meet everyone’s objectives. They include:

  • Contacting clients

  • Distributing account statements

  • Carrying out the necessary follow-ups and reports

  • Producing accounts receivable statements

  • Facilitating meetings

Much of this work is dependent on their daily tasks. If they fall behind on their daily tasks, they won’t be able to produce all the weekly statements and reports. This would in turn negatively impact other members of the accounting department.

Monthly job duties of an accounts receivable clerk

The role of an accounts receivable clerk is similar to that of an accounts payable clerk

In fact, it is not uncommon for an accounts receivable clerk to be distributed occasional tasks from accounts payable clerks each month. Although these tasks may vary each month, they are nevertheless important. It’s good to be aware of these potential additional tasks in order to effectively complete them when asked. 

  • Analyze credit ratings for new clients 

  • Give sales teams recommendations

  • Open accounts

  • Create credit insurance policy reports 

  • Verify and investigate discrepancies

  • Process outgoing payments

  • Continually make improvements to company procedures

  • etc.

The above list of duties is not exhaustive. The accounts receivable clerk may even be asked to carry out further related tasks. Since they also work closely with the collections manager and billing clerk, they could be assigned some of their tasks as well. This happens a lot in small to medium-sized businesses.

Fed Finance: accounts receivable clerk recruiter

Can you see yourself performing these tasks and becoming an accounts receivable clerk? If so, we can help!

Fed Finance can help you find your dream job! Feel free to contact us to discuss your job applications or consult our accounting job offers today.