Accounts Receivable
Accounts Receivable is a key business function that deals with money owed to a company by its customers. Think of it as keeping track of who needs to pay the company and making sure those payments come in on time. People working in this role handle customer billing, track payments, follow up on overdue accounts, and maintain accurate financial records. This is similar to managing a household budget, but on a business scale. Other terms that mean the same thing include "AR," "Receivables," or "Collections."
Examples in Resumes
Managed Accounts Receivable for 200+ client accounts with a value of $2M
Reduced AR aging by 45% through improved collection strategies
Supervised a team of 3 Accounts Receivable clerks and streamlined billing processes
Handled Accounts Receivable and collections for a mid-sized manufacturing company
Typical job title: "Accounts Receivable Clerks"
Also try searching for:
Where to Find Accounts Receivable Clerks
Professional Associations
Online Resources
Job Boards
Example Interview Questions
Senior Level Questions
Q: How would you handle a major client who consistently pays late?
Expected Answer: Should discuss professional communication strategies, setting up payment plans, understanding client's business challenges, and balancing maintaining client relationships while ensuring timely payments.
Q: Describe how you would improve an underperforming AR department.
Expected Answer: Should mention implementing new procedures, training staff, using technology effectively, setting collection goals, and measuring key performance indicators like Days Sales Outstanding (DSO).
Mid Level Questions
Q: How do you prioritize collections when dealing with multiple past-due accounts?
Expected Answer: Should explain organizing by amount owed, age of debt, payment history, and available resources. Should mention following up with larger amounts first while not neglecting smaller accounts.
Q: What steps do you take to reconcile accounts?
Expected Answer: Should describe comparing payment records with bank statements, investigating discrepancies, and ensuring all transactions are properly recorded and matched.
Junior Level Questions
Q: What information do you need to process a customer payment?
Expected Answer: Should mention customer account number, invoice number, payment amount, payment method, and date received. Should understand importance of accurate record-keeping.
Q: How do you stay organized when processing multiple invoices?
Expected Answer: Should discuss using checklists, maintaining a calendar for follow-ups, proper filing systems, and attention to detail in recording transactions.
Experience Level Indicators
Junior (0-2 years)
- Basic bookkeeping
- Data entry and filing
- Processing payments
- Customer service
Mid (2-5 years)
- Collections calls
- Account reconciliation
- Payment plan setup
- Financial reporting
Senior (5+ years)
- Team management
- Process improvement
- Financial analysis
- Policy development
Red Flags to Watch For
- Poor attention to detail in numerical work
- Lack of basic accounting knowledge
- Weak communication skills
- No experience with accounting software
- Unable to maintain confidentiality
