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 jobs
average 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.
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.
Here, you will find the answers to the most frequently asked questions about the profession of an accounts receivable clerk.
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