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Accounts Receivable Executive job description

An Accounts Receivable Executive keeps track of what customers owe and records what they pay. They raise or check invoices, post receipts, maintain customer ledgers and support collection follow up. The role reports to the Accounts Manager and works with sales and credit control. A good AR Executive posts receipts to the right invoice, keeps customer accounts clean and flags overdue balances early so collections can act.

DetailFor this role
DepartmentFinance and Accounts
LevelEntry level
Reports toAccounts Manager
Direct reportsNone
Experience1 to 3 years in receivables or accounts

Accounts Receivable Executive job description template

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Job title: Accounts Receivable Executive

Department: Finance and Accounts

Reports to: Accounts Manager

Location: [City], [office, branch or site]

About the role

An Accounts Receivable Executive keeps track of what customers owe and records what they pay. They raise or check invoices, post receipts, maintain customer ledgers and support collection follow up. The role reports to the Accounts Manager and works with sales and credit control. A good AR Executive posts receipts to the right invoice, keeps customer accounts clean and flags overdue balances early so collections can act.

Key responsibilities

  • Raise or check customer invoices with correct amounts, tax and references.
  • Post customer receipts and apply them to the right invoices accurately.
  • Maintain customer ledgers and keep balances current and reconciled.
  • Prepare the receivables ageing report and share it with credit control.
  • Follow up on overdue accounts with reminders and statements.
  • Resolve small billing disputes and short payment deductions with sales.
  • Reconcile customer accounts and clear on account and unapplied receipts.
  • Coordinate with the sales team on collections and disputed invoices.
  • Track customer advance receipts and adjust them against invoices raised.
  • Keep receivable records, ageing reports and workings ready for audit.

Requirements

  • B.Com or M.Com
  • Knowledge of receivables and invoicing
  • Tally or ERP experience
  • 1 to 3 years in receivables or accounts

KRAs and KPIs for a Accounts Receivable Executive

Key result areas for the appraisal form, each with a KPI you can measure every month or quarter.

Key result areaHow to measure it
Receipt accuracyReceipts applied to the correct invoice with unapplied amounts cleared monthly
Ledger accuracyCustomer accounts reconciled every month with no unexplained balance
Ageing reportingReceivables ageing prepared and shared by the agreed date each month
Collections supportOverdue accounts followed up within the agreed cycle
Dispute closureSmall disputes and deductions resolved within the agreed turnaround

Skills and tools

Accounts receivableReceipt applicationCustomer reconciliationReceivables ageingGST on invoicesAccounting softwareMS ExcelFollow upCoordination

Tools used day to day: Tally Prime, SAP, MS Excel, e-invoicing portal, Bank portals.

Reporting line and career path

Accounts ManagerAccounts ReceivableExecutive

Interview questions for a Accounts Receivable Executive

  1. How do you apply a receipt when the customer does not mention the invoice?
  2. How do you keep a customer ledger reconciled?
  3. How do you prepare and use a receivables ageing report?
  4. How do you follow up an overdue account without upsetting the customer?
  5. How do you handle a short payment with a deduction?
  6. How do you clear unapplied and on account receipts?

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Frequently asked questions

What does an Accounts Receivable Executive do?

An Accounts Receivable Executive tracks what customers owe and records what they pay. They raise or check invoices, post receipts to the right invoice, maintain customer ledgers, prepare ageing reports and support collection follow up. Reporting to the Accounts Manager, the role keeps customer accounts clean and current.

What is the difference between accounts receivable and credit control?

Accounts receivable records invoices, receipts and customer balances. Credit control actively manages collections: setting limits, chasing overdue accounts and reducing bad debt. The AR Executive keeps the record accurate; credit control turns those balances into cash on time. The two work closely together.

What qualifications does an Accounts Receivable Executive need?

Most Accounts Receivable Executive roles ask for a B.Com or M.Com with knowledge of receivables and invoicing and comfort with Tally or an ERP. One to three years of experience is usual, along with accuracy in posting receipts and patience for collection follow up.