Torchora
Back to Home

Key Responsibilities and Required Skills for Accounts Receivable Manager

💰 $75,000 - $110,000

AccountingFinanceCredit ControlAccounts ReceivableManagement

🎯 Role Definition

An Accounts Receivable Manager oversees the billing, collections, and credit functions to ensure timely cash inflow and accurate customer account management. This role is pivotal in maintaining strong financial controls, improving working capital, and leading a team responsible for invoicing, dispute resolution, and credit management. The AR Manager acts as a key liaison between finance, sales, and operations, ensuring that receivables are managed efficiently in line with corporate policies and GAAP standards.

📈 Career Progression

Typical Career Path

Entry Point From:

  • Accounts Receivable Specialist
  • Senior Accounts Receivable Analyst
  • Credit and Collections Supervisor

Advancement To:

  • Senior Accounting Manager
  • Director of Accounting / Credit & Collections
  • Controller

Lateral Moves:

  • Accounts Payable Manager
  • Billing Manager

Core Responsibilities

Primary Functions

  1. Oversee daily operations of the Accounts Receivable department including invoicing, collections, and cash application.
  2. Develop and implement AR policies, procedures, and best practices to improve collection efficiency and reduce DSO (Days Sales Outstanding).
  3. Manage and mentor AR staff by setting clear performance objectives, conducting regular evaluations, and promoting professional growth.
  4. Ensure timely and accurate billing to customers in accordance with contractual terms and company guidelines.
  5. Supervise the reconciliation of AR sub-ledgers and general ledger accounts to maintain accuracy of financial statements.
  6. Monitor and analyze aging reports, identify delinquent accounts, and take proactive steps to resolve payment delays.
  7. Collaborate with Sales, Customer Service, and Operations to resolve billing disputes, pricing discrepancies, and credit issues.
  8. Lead credit risk assessment and establish appropriate customer credit limits to mitigate financial exposure.
  9. Oversee cash application processes to ensure payments are applied accurately and promptly.
  10. Prepare and present monthly AR performance reports, collection forecasts, and cash flow projections to senior management.
  11. Develop and track key performance indicators (KPIs) related to receivables, collections, and team productivity.
  12. Support month-end and year-end close activities including journal entries, reconciliations, and variance analysis.
  13. Work closely with auditors (internal and external) to provide supporting documentation and ensure compliance with audit requirements.
  14. Implement and optimize ERP or financial systems such as SAP, Oracle, or NetSuite for AR automation and reporting.
  15. Lead continuous improvement initiatives to streamline AR processes and enhance operational efficiency.
  16. Maintain compliance with GAAP, SOX, and internal control frameworks.
  17. Negotiate payment arrangements and settlements with customers while maintaining strong client relationships.
  18. Coordinate with Treasury on cash flow forecasting and liquidity management.
  19. Drive cross-functional initiatives to improve end-to-end order-to-cash processes.
  20. Represent the AR function in corporate financial reviews, business planning meetings, and strategic discussions.

Secondary Functions

  • Support ad-hoc financial analysis, data requests, and KPI reporting.
  • Contribute to finance transformation projects and process automation initiatives.
  • Collaborate with IT and data teams to optimize AR dashboards and analytics.
  • Participate in change management and training related to new finance systems or procedures.

Required Skills & Competencies

Hard Skills (Technical)

  • Expertise in ERP systems such as SAP, Oracle, NetSuite, or Workday
  • Strong knowledge of GAAP, SOX compliance, and internal control frameworks
  • Advanced proficiency in Excel (pivot tables, VLOOKUPs, dashboards, macros)
  • Deep understanding of AR aging, DSO metrics, and cash flow forecasting
  • Experience in credit management, collections strategy, and dispute resolution
  • Familiarity with financial reporting tools (Power BI, Tableau, or similar)
  • Analytical and data-driven decision-making ability
  • Budgeting and variance analysis for AR and cash flow
  • Strong command of reconciliation and audit documentation standards
  • Process improvement methodologies (Lean, Six Sigma, or Kaizen)

Soft Skills

  • Exceptional leadership and team development abilities
  • Strong interpersonal and communication skills with cross-functional partners
  • Strategic thinking combined with operational execution focus
  • Negotiation and conflict resolution skills for managing client relationships
  • High attention to detail with a results-oriented mindset
  • Ability to prioritize tasks in a fast-paced, deadline-driven environment
  • Proven problem-solving and decision-making capabilities
  • Adaptability to change and emerging financial technologies
  • Customer-centric approach to collections and dispute resolution
  • Professional integrity and discretion when handling confidential financial data

Education & Experience

Educational Background

Minimum Education:
Bachelor’s Degree in Accounting, Finance, or Business Administration

Preferred Education:
Master’s Degree in Accounting, Finance, or MBA

Relevant Fields of Study:

  • Accounting
  • Finance
  • Business Administration
  • Economics

Experience Requirements

Typical Experience Range:
5–8 years of progressive experience in accounts receivable, credit management, or corporate finance

Preferred:
7+ years of AR experience with at least 3 years in a supervisory or managerial role, ideally in a mid-to-large corporate environment using ERP systems and leading process improvement initiatives.

Explore More Careers