Accounts receivable from the accounting scenario has a deep meaning and complicated undertaking. Accounts receivable is an asset of the business so the collections of these will be greatly affecting the company's cash flow. Despite the era of computer technology, the accounts receivable staff still is needed in the company. Although the job is easier now because of the accounting software, they still perform manual duties that cannot be replaced by computers.
By definition, an accounts receivable specialist is a member of the company work force whose function is to handle billing and collections for the enterprise. Their duties and responsibilities are critical for the cash flow and profitability of the firm.
Once designated for the position, the worker has to be adept in operating a computer as most business transactions are now incorporated in various accounting software. The employee handling the job must keep track of clients who need to be billed, how much and when payments are due. For past due accounts, they are also in charge of reminding the clients and in addition to the verbal reminder which they do via the phone, written communications in form of letters or emails must also be handled by this employee. They can be tasked to devise strategies to collect and convert the receivables into cash. Receivables are nothing when these cannot be turned into their monetary equivalent.
This employee must be endowed with mathematical skills as the work may entail computations. He or she must have strong communication ability - both oral for collection letters and verbal for phone collections. He or she must possess an analytical mind, must be sensible, hardworking, organized and a problem solver. The last qualification is very vital because collection is a difficult problem to handle.
Many companies require the employee for this position to have an associate degree in accounting. There are companies that require higher educational attainment - that of a bachelors degree, preferably in accounting or bookkeeping. There are some job applicants for this position that are lucky to be hired with only a high school diploma and accountancy training (formal or informal).
Accounts receivable and business profitability
Accounts receivable may have arisen due to sale of merchandise - if the business is on sales. This is actually non-cash sales; credit or loan in the layman non-accounting term. So even if the goods are said to be sold, without the material cash on hand, the firm cannot yet treat as part of the income. It must first be collected and payment should be received. Payments can be made through checks, credit cards or cash. Credit cards are good as cash but for checks - this type of asset must first be cleared with the issuing bank and ultimately converted into cash. The monitoring of this endeavor rests on the hands of the accounts receivable clerk or specialist.
Hiring of accounts receivable staff is a crucial decision for the human resource department of the company. The job requires competence.