An accounts receivable analyst is responsible for monitoring a company’s ability to collect its outstanding invoices.
An accounts receivable analyst is responsible for monitoring a company’s ability to collect its outstanding invoices. The analyst may participate in billing activities, including investigation of potential billing errors. Additional investigation is usually done to find out why payments are missing, missing, or delinquent. As part of the accounts receivable process, an analyst can recommend changes to a customer’s credit limit and help reconcile the account’s payment history.
Typically, the accounts receivable analyst manages a group of payment accounts for a company. When suppliers buy supplies or services on credit, they may have various payment terms that allow them to obtain percentage discounts on the total or delay payment of the balance in installments. Part of the analyst’s job is to ensure that the terms of the loan are adhered to and that any discrepancies and misunderstandings related to the terms of the loan are resolved promptly.
Ensuring that a business receives its unpaid balances is the primary responsibility of an accounts receivable analyst. Part of this job duty involves observing account activity and contacting customers to find out why payments may be late. In some cases, it may be necessary to use collection tactics to encourage customers to pay off past due balances. One of the ways this is sometimes achieved is by restricting access to credit.
In addition to resolving any record errors, an accounts receivable analyst must periodically monitor each customer’s account and payment activity. If a customer is consistently delinquent, the analyst may need to modify the terms of the credit by lowering limits and increasing late or finance charges. Some customers’ credit privileges may need to be temporarily canceled while payment disputes and outstanding balances are resolved.
Running reports and keeping records are other important tasks that an accounts receivable analyst will typically be responsible for. Since contact is made with clients regarding late payments, the analyst will typically need to document when the client was contacted and what type of exchange took place. For example, a tenant whose account is past due may receive a late payment warning letter, followed by a notice to pay the outstanding balance or surrender the landlord’s property. It is also important that all verbal exchanges, such as promises to send payments, are documented.
Part of the documentation process involves reconciling account records. Account reconciliation involves accounting for payments on outstanding invoices and ensuring that balances are settled. The reconciliation process may also include monthly verification of all charges and credits to a customer’s account.