An accounts receivable analyst is in charge of ensuring that a company’s outstanding invoices are paid. The analyst may assist with collection efforts, such as investigating potential billing errors. Payments that are missing, short, or delinquent are usually investigated further. An analyst may recommend changes to a customer’s credit limit and assist in the reconciliation of an account’s payment history as part of the accounts receivable process.
A company’s accounts receivable analyst will typically manage a group of payment accounts. Vendors who buy supplies or services on credit may have different payment terms that allow them to get a percentage off the total or pay the balance over time in installments. One of the analyst’s responsibilities is to ensure that the credit terms are followed and that any discrepancies or misunderstandings about the credit terms are promptly resolved.
An accounts receivable analyst’s main responsibility is to ensure that a company’s unpaid balances are collected. Examining account activity and contacting customers to find out why payments are late is part of this job’s responsibilities. In some cases, collection tactics may be necessary to persuade customers to pay any outstanding balances. Restriction of credit access is one of the ways this is sometimes accomplished.
An accounts receivable analyst must monitor each customer’s account and payment activity on a regular basis, in addition to correcting any record errors. If a customer is consistently late, the analyst may need to change the terms of the credit agreement lowering credit limits and raising late fees or finance charges. Some customers’ credit privileges may need to be suspended temporarily while payment disputes and outstanding balances are resolved.
Other important tasks that an accounts receivable analyst is typically responsible for include reporting and recordkeeping. When making contact with customers about past due payments, the analyst will usually need to keep track of when the customer was contacted and what type of conversation took place. For example, if a lessee’s account is past due, he or she may receive a warning letter along with a late fee, as well as a notice to pay the outstanding balance or surrender the lessor’s property. Any verbal exchanges, such as promises to send payment, should be documented as well.
Account records must be reconciled as part of the documentation process. Account reconciliation entails posting payments against outstanding invoices and ensuring that all accounts are in good standing. On a monthly basis, the reconciliation process may also include verifying all charges and credits against a customer’s account.