An accounts receivable clerk is an entry-level accounting professional who specializes in accurately recording financial transactions that generate revenue for their organization. Accounts receivable clerks monitor the inflow of money on the income side of general ledgers to highlight the company’s profits. Managers and executives rely on accounts receivable clerks to update statements on incoming money to ensure that the company is being properly paid for products or services rendered. Computer software has automated several tasks performed, which means employment of accounts receivable clerks will drop by eight percent through 2024, according to Bureau of Labor Statistics. There’s still a need for account receivable clerks to guarantee that data is recorded and calculated correctly though. If you love numbers and are detail-oriented, review the following job profile to determine if accounts receivable would be a suitable niche.
What Accounts Receivable Clerks Do
Accounts receivable clerks are responsible for preparing bills and invoices sent to clients who’ve purchased products or services. Accounts receivable clerks will record every transaction’s date, price, fees, shipping amounts, and discounts if applicable. When customers pay, the accounts receivable clerk will record payments into a ledger. At times, accounts receivable clerks must send bill reminders by email or consult with a third-party collection agency. Accounts receivable clerks will gather cash and checks received to deposit into the company’s bank account. Clerks regularly review the accounts receivable ledger to pinpoint discrepancies and correct them. Keeping track of all invoices, receipts, and deposit slips makes generating monthly or quarterly fiscal statements simpler.
Where Accounts Receivable Clerks Work
Job prospects for accounts receivable clerks exist in any companies that are large enough to hire specialized staff for closely monitoring the intake of capital. Accounts receivable clerks can work in virtually any industry, ranging from manufacturing to pharmaceuticals. The highest percentage (12 percent) of accounts receivable clerks work in professional, scientific, and technical services. Other accounts receivable clerks are employed in retail, wholesale trade, healthcare, education, government, finance, insurance, telecommunications, and securities and commodities. Accounts receivable clerks can work for public, private, or nonprofit organizations. Most are employed full-time, yet one-quarter of accounts receivable clerks work longer than 40 hour weeks. Accounts receivable clerks usually work independently in an office setting with other accounting clerks.
How To Become an Accounts Receivable Clerk
Having a high school diploma may be sufficient for some accounts receivable clerks. However, increasingly complex financial regulations have made post-secondary schooling beneficial. Employers typically prefer candidates with a certificate or two-year degree in accounting. An Associate of Applied Science (A.A.S.) is popular for new accounts receivable clerks. In their first job, accounts receivable clerks will receive on-the-job training with a more experienced clerk or accountant. Training generally lasts six months to introduce accounts receivable clerks to databases, software systems, office equipment, and 10-key calculators. Certification as an Accredited Receivables Specialist (ARS) can aid in promotion, according to the Accounts Receivable Network. You’ll need at least two years of experience and a passing score on the 100-question exam.
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Accounts receivable clerks may be entry-level, but their work is vitally important in processing and monitoring a company’s incoming payments. Accounts receivable clerks pore over receipts and invoices to ensure all revenue is accounted for within the general ledger. According to Salary.com, accounts receivable clerks bring home a median annual wage of $36,616, or $18 per hour. Working as an accounts receivable clerk can give workers the experience needed to become accountants, auditors, and financial managers.