Learn something new every day
More Info... by email
Accounts receivable management is a process that is related to the management of the outstanding money owed to a business by its customers and other debtors. This process is one that is vital to the survival of a business, since such funds are needed for the operations of the business. As such, it involves the process of establishing a sort of well-planned system for the management of granting credit to customers in different forms, depending on the particular business. Retailers might utilize the granting of store-generated credit cards and the use of other systems, such as layaways. The job of the accounts receivable manager is to generally oversee the department that is charged with tracking such funds through functions that may include hiring staff and taking proactive measures to implement favorable policies.
One of the functions of the accounts receivable manager is to ensure that the proper staff is selected to work in the management of accounts receivable, including the development of regimes for the proper training of such staff. The types of employees that may work in the accounts receivable department include people like the customer care representatives who will be given the responsibility of calling customers to remind them of outstanding or overdue balances and to get some form of commitment from them regarding the repayment of such funds. An accounts receivable manager will be there to answer any questions these employees might have regarding their jobs and to help them resolve any complex issues that might develop with certain customers. The manager will be expected to micromanage the employees and track the performance of the staff in order to rate their performance and to prune the underperforming ones from the workforce.
Some customers can become belligerent when confronted with the issue of their outstanding debt, in which case the accounts receivable manager will be responsible for taking measures necessary to diffuse tense situations. Other staff managed by the accounts receivable manager are those who develop the standards for the granting of credit facilities to the various customers, including the periodic review of such policies in order to make any necessary adjustments to reflect any changes in the business environment. The staff under the accounts receivable manager will also be expected to keep tract of the outstanding payments through setting up and managing a comprehensive database specifically meant for this purpose.
One of our editors will review your suggestion and make changes if warranted. Note that depending on the number of suggestions we receive, this can take anywhere from a few hours to a few days. Thank you for helping to improve wiseGEEK!