The Accounts Receivable (AR) Clerk maintains a company’s financial health by ensuring steady cash flow. This foundational position within the accounting department manages the money owed to the business by its customers. Timely and accurate processing of these transactions allows the business to meet its financial obligations and plan for future operations. The AR Clerk’s work systematically converts sales into realized revenue.
Defining the Accounts Receivable Clerk Role
The Accounts Receivable Clerk is a financial administrator who manages the inflow of funds from customers who purchased goods or services on credit. This role tracks all transactions until payment is successfully received and recorded. The primary function is managing the accounts receivable ledger, which is categorized as a current asset because it represents future cash expected to be collected.
This function is distinct from Accounts Payable (AP), which manages the money the business owes to its suppliers. AP is a current liability representing a cash outflow, while AR is an asset representing an inflow. The AR Clerk focuses on the customer side of the financial equation, ensuring credit terms are met and asset accounts are accurately reflected throughout the entire life cycle of a customer invoice.
Primary Responsibilities and Daily Duties
The daily work of an AR Clerk is highly transactional and requires meticulous attention to detail to ensure financial records are accurate. This includes routine calculating, posting, and verifying duties that directly impact the company’s liquidity. These actions create the financial data used for maintaining accounting records and reporting on the company’s financial status.
Processing and Issuing Invoices
The clerk generates and distributes sales invoices promptly after a service is delivered or a product is shipped. This requires accurately entering sales data, verifying pricing, and ensuring the correct payment terms are applied. The process often involves using specialized billing software before sending the invoice via mail or electronically.
Recording Payments and Cash Application
Upon receiving a customer payment (cash, check, or electronic transfer), the AR Clerk records and posts it to the correct customer account. This process, known as cash application, involves matching incoming funds to the specific open invoices they settle. They prepare bank deposits and track revenues by verifying and entering transactions from various sources.
Following Up on Delinquent Accounts
A significant portion of the role involves managing the collection of outstanding balances, often called collections management. The clerk monitors aging reports to identify overdue invoices and contacts customers via phone or email to request payment. This requires professional communication and sometimes negotiation to resolve payment issues or arrange new payment schedules.
Reconciling Accounts
The AR Clerk regularly performs account reconciliation to ensure the accounts receivable ledger balances with the general ledger and bank statements. This involves investigating discrepancies between payments received and the amounts invoiced or recorded. The clerk resolves these differences by analyzing information from sales, customer service, or the customer directly.
Maintaining Accurate Records
The position requires maintaining comprehensive and organized customer files and financial records. This includes updating customer contact information, processing credit memos and refunds, and summarizing receivables. Protecting the confidentiality of financial information is a continuous expectation.
Essential Skills and Qualifications
Succeeding as an Accounts Receivable Clerk requires a combination of educational background, technical abilities, and interpersonal skills. While a high school diploma is the common entry-level requirement, many employers prefer candidates with an Associate’s degree or certificate in accounting or bookkeeping. Knowledge of basic accounting principles and fair credit practices is foundational.
Technical competency includes proficiency with accounting software packages (such as QuickBooks or SAP) and skill in Microsoft Excel for data analysis. The ability to calculate and manage accounting figures accurately is paramount, as the work involves extensive numerical data entry. Strong organizational skills are necessary to manage multiple accounts and meet deadlines.
Effective communication and customer service skills are necessary for interacting with customers regarding their account status and resolving billing issues. This includes professional verbal communication for collection efforts and clear written correspondence. The clerk must also possess analytical skills to identify and resolve discrepancies in the account ledgers.
Typical Work Environment and Salary Expectations
AR Clerks are employed across virtually every industry, including financial services, healthcare, and wholesale trade. The work is generally performed in a standard office environment, often in person or in a hybrid capacity, and involves consistent daily financial processing. The role requires working closely with other members of the accounting team, such as Accounts Payable and General Ledger staff.
Salary expectations are influenced by location, experience, and company size. The national median annual salary is approximately $37,110, with entry-level positions starting around $30,000. Experienced professionals can earn $45,000 to $50,000 annually, with higher-paying metropolitan areas often offering salaries in the $50,000 to $54,000 range.
Career Path and Advancement Opportunities
The Accounts Receivable Clerk position serves as an entry point into the broader finance and accounting profession. With consistent performance, an individual can advance to specialized or supervisory roles. A natural progression is often to an Accounts Receivable Specialist, which involves more complex reconciliations, dispute resolution, and credit management responsibilities.
Experienced clerks may move into an Accounts Receivable Supervisor or Manager position, overseeing the AR team and developing strategies to optimize cash flow. The understanding of financial transactions gained in the AR role can also facilitate a transition into a Staff Accountant or General Ledger Accountant position. Pursuing certifications or higher education, such as a degree in Finance or Accounting, supports upward movement into roles involving financial analysis and strategic planning.