what is an accounts receivable clerk?
As an accounts receivable clerk, you manage incoming payments and ensure receivable transactions are recorded accurately. Your role is essential for improving the company's cash flow and maintaining a good client relationship. Hence, you keep track of the expected revenue and issue invoices to customers on time.
Your job involves keeping meticulous records of transactions with customers to ensure correct billing. You also monitor payment schedules to ensure the company receives payments on time. Whenever there are any discrepancies in payments or billings, you address the issue promptly and ensure the company maintains good relationships with clients.
As an accounts receivable clerk, you follow up on overdue payments. You actively communicate with clients and negotiate payment plans for late payments. This ensures the company receives the revenue on time and maintains a steady cash flow.
To excel in the role, you require a solid understanding of accounting principles, collection regulations and fair credit practices. Your data entry skills and proficiency in using data collection software will help you excel in your role. Since you speak with customers directly, you require good customer service skills to maintain a good relationship with clients.
Would working as an accounts receivable clerk suit your data entry skills and understanding of accounting principles? Then read on to find out what competencies and qualifications you need to thrive in an accounts receivable clerk role.
available jobsaverage accounts receivable clerk salary
According to Job Bank, the average salary of accounts receivable clerks in Canada is $45,000 per year. You earn an average hourly rate of $23.08. Entry-level roles start with an average salary of $37,050 annually. As you improve your experience and competency, your earnings increase gradually. The most experienced accounts receivable clerks take home over $55,603 per year.
how to increase your salary as an accounts receivable clerk
Your salary as an accounts receivable clerk depends on the region. Some provinces in Canada have a high demand for accounts receivable clerks, and the average salary is higher compared to other regions. For instance, working in Quebec or Alberta increases your earning potential. Working in large cities also has its perks. The high demand for the role makes the salaries more competitive.
The size of the company and your duties also influence your earnings. When you work in a large company with many receivables, you handle multiple transactions daily. The complexity of your duties warrants a higher salary. Small organizations have fewer transactions and clients; hence, you handle fewer transactions. Besides, the limited resources in smaller companies reduce your salary expectations.
types of accounts receivable clerks
A small company may have only one accounts receivable clerk, but large companies have different types of accounts receivable roles. Some of them include:
- general accounts receivable clerks: as a general accounts receivable clerk, you handle various tasks associated with collections and billings. Your duties include recording payments, preparing invoices and following up on overdue accounts.
- accounts receivable analysts: as an accounts receivable analyst, you evaluate the accounts receivable process. You monitor the company's receivables, identify trends, and provide recommendations on how to improve collection rates and enhance the efficiency of the accounts receivables process.
- medical accounts receivables clerks: as a medical accounts receivables clerk, you work in the healthcare industry. Your job is to manage receivables, including processing payments from insurance companies. With your knowledge of healthcare billing and insurance practices, you can navigate the complexities of medical coding.
working as an accounts receivable clerk
If you are good with numbers and interested in working as an accounts receivable clerk, read on to understand the duties and work environments of the role.
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what does an accounts receivable clerk do?
Some of the duties and responsibilities of accounts receivable clerks include:
- preparing accurate invoices: as an accounts receivable clerk, you prepare invoices for the transactions done with the client. You ensure billing information is accurate and confirm details of the work done or services provided and the costs. You also add the payment details and follow up with clients to ensure invoices are paid when they are due.
- making bank deposits: as an accounts receivable clerk, you handle payments from customers made through different channels. With electronic payments, you don’t do a bank run, but when a client pays through a check or cash, you make deposits at the bank.
- recording transactions: when you receive payments from customers or clients, you update the accounting records on the company’s accounting software. You ensure receivables are documented according to the company’s procedures and policies. The record should show the amounts received from customers and balances.
- preparing final accounts and financial statements: as an accounts receivable clerk, you record daily, weekly and monthly receivables. You use the accounts records to generate cash flow reports and financial statements. For instance, you create monthly summaries of accounts receivable data and review the amounts due from clients.
- verifying and investigating discrepancies: as an accounts receivable clerk, you handle billing complaints from customers. You verify discrepancies in invoices and resolve issues with clients. If the issue requires a refund, you arrange the refund and ensure the customer is happy with the outcome.
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work environment of an accounts receivable clerk
As an accounts receivable clerk, you work in various industries, including marketing, healthcare, pharmaceuticals and retail. You may work in the public or private sector or for a non-profit organization.
Your duties and responsibilities involve working from a computer. That means you work in an office setting alongside other accounting professionals. You follow up on payments by making phone calls and working with collections departments. In businesses that involve cash and check transactions, you make daily or weekly bank runs.
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who are your colleagues?
Depending on the industry you work in and your employer, you are likely to collaborate with accounts payable clerks, accounting clerks and finance assistants. You also work alongside data entry clerks, accountants and billing clerks. Other professionals you are likely to interact with include collections managers and bookkeepers.
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accounts receivable clerk work schedule
The work schedule of an accounts receivable clerk varies in full-time and part-time positions. When you work full-time, you work between 35 and 40 hours a week. Your typical working hours are Monday to Friday, usually from 9 am to 5 pm. You work overtime during busy seasons. You may take on a part-time accounts receivable clerk job and work between 20 and 35 hours a week. Some companies have remote work opportunities.
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career opportunities as an accounts receivable clerk
Working as an accounts receivable clerk is the perfect entry-level role for accounting or finance professionals. You can progress to other roles in the company, like becoming an accountant or bookkeeper. Some accounts receivable clerks become credit officers or collections managers after gaining years of experience or earning additional certifications.
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advantages of finding a job as an accounts receivable clerk through randstad
Working with Randstad offers you a range of benefits.
- always a contact person you can fall back on and ask for help from
- many training opportunities
- a range of jobs in your area
accounts receivable clerk skills and education
The educational requirements for becoming an accounts receivable clerk include:
- college course: while you can land a job with secondary school education and on-the-job training, having some qualifications improves your career prospects. Pursue a college course in accounting certified by the Certified General Accountants Association of Canada or the Canadian Bookkeepers Association. Some accounts receivable clerks' roles are bondable.
- work experience: you require minimal work experience to work as an accounts receivable clerk. Gain experience through data entry roles and accounting clerk positions to improve your skills.
competencies and characteristics of accounts receivable clerks
Some of the qualities of an accounts receivable clerk include:
- data entry skills: as an accounts receivable clerk, you rely on your data entry skills to track receivables in the company. With your data entry skills, you can keep accurate records and ensure the accounting software is updated with the financial transaction information.
- familiarity with accounting procedures: as an accounts receivable clerk, you should be familiar with the preparation of financial statements. You use your knowledge of accounting procedures to create monthly summaries of the receivables and track the company’s cash flow.
- customer service: as an accounts receivable clerk, you interact with customers when you are distributing invoices, explaining the billings and receiving payments. You also speak with clients when answering customer’s concerns and questions. Having good customer service skills helps you maintain professionalism and build lasting relationships with customers.
- computer skills: as an accounts receivable clerk, you record financial transactions with the help of accounting software. You require good computer skills and proficiency in using accounting software or Microsoft Office applications to prepare financial statements and invoices for customers.
FAQs
Here, you will find the answers to the most frequently asked questions about the profession of an accounts receivable clerk.
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what is the job description of an accounts receivable clerk?
As an accounts receivable clerk, your duties include preparing invoices and billing statements for clients and customers. You send the invoices to clients and receive payments in cash or checks. You also maintain accounts receivable files and records and perform account reconciliations on customers’ transactions.
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how much does an accounts receivable clerk earn in Canada?
As an accounts receivable clerk, you receive an average salary of $45,000 per year or an hourly rate of $23.08. When you are new in the role, you start with a salary of $37,050 annually. As you improve your experience and educational qualifications, your earnings increase gradually, and you can take home over $55,603 per year.
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is accounts receivable clerk a good job?
Accounts receivable clerk is an exciting career with promising opportunities for growth. The earnings are lucrative and increase with experience. Accounts receivable clerks may progress to higher roles in accounting or finance departments. For instance, you can move from receivables to an accountant or finance assistant position.
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what skills does an accounts receivable clerk need?
As an accounts receivable clerk, you require strong communication and customer service skills to maintain good relationships with clients. Customer service skills help you handle customers professionally and inquiries promptly. Your data entry skills are useful for recording financial transactions and keeping accurate accounting records.
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what training do you need for an accounts receivable clerk job?
While it's possible to join an accounts receivable clerk role without educational qualifications, having some qualifications improves your career prospects. Find an accounting or bookkeeping course to learn the ropes. Accounting courses should be certified by the Canadian Bookkeepers Association or the Certified General Accountants Association of Canada. You can build your experience through internships and on-the-job training.
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how do I find a job as an accounts receivable clerk?
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