Accounts Receivable Manager Job Description: Responsibilities & Team Impact [+ Free Job Template]

“Trust starts with you. The level of vulnerability you are willing to show sets the tone for everybody else. When you are open, emitting certainty, celebrating lessons from failure, and seeking feedback, you then create the space for others to do the same,” says Jonna Howes, in the Courageous Leaders podcast.  

This is relevant for leaders in the accounting industry more than anyone else. When the transition from an accountant to an accounting leader happens, it is no longer just about the technical skills or the knowledge of the international accounting standards. While they are important too, what is more important is how you step up. How well you understand your new role and how well you bridge the gap between the organizational values and the individual goals.  

For growing businesses, one of the most common roles that firm leaders play is that of managing the cash flow – it is a strategic priority. To make this role a success, there is a need for an Accounts Receivable (AR) Manager. According to a report, about 400 billion invoices are produced in the US each year, and this number is growing by 5 to 15 times each year. While the role may be underestimated, the data proves tits importance. An AR Manager is responsible for maintaining liquidity, building strong client relationships, and ensuring the financial health of the business. Finding the right fit may be a struggle, but not when you know exactly what you are looking for. 

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Why Does Your Business Need an AR Manager? 

What happens when receivables are not tracked properly? Well, it’s quite simple! Payments are delayed, there are severe cash flow crunches, and business relationships get strained. An Accounts Receivable Manager ensures it all – invoicing, collections, reconciliations, and smooth reporting. They are also responsible for building teams that may include billing specialists or credit analysts. But an AR Manager does more than operational executions. They set policies and processes, build proactive communication channels with clients, help align billing cycles with financial forecasting, and often play a key part in reducing days sales outstanding. Bottomline? They convert revenue into cash faster and more predictably.  

Download Accounts Receivable Manager Job Description Free Template 

Common Tasks That AR Managers Perform 

In some firms, especially in small accounting firms, the tasks of AR and AP professionals tend to overlap. Now, if you are hiring a specialist for the role, it is important to understand what separates an AR Manager not just from AP professionals, but also from other AR professionals. Their tasks include:  

1. Oversee Billing and Invoicing Operations

They ensure accurate and timely invoicing of clients, monitor the billing schedule, and follow up to ensure revenue does not leak. They are also responsible for collaborating with sales and project teams to align billing with contract terms.  

2. Manage Collections and Dispute Resolution

Chasing vendors consistently to ensure there are no payment gaps is a time-consuming affair. An AR Manager is responsible for setting and tracking collection KPIs for the teams, implementing follow-up strategies for overdue invoices, and resolving client disputes efficiently. 

3. Reconcile Receivables and Maintain Records

An AR Manager is responsible for overseeing the accurate application of payments in the accounting systems, monitoring, and reconciliation of the AR sub-ledger to the general ledger. They are also responsible for ensuring compliance with internal policies and external audits.

4. Lead and train Junior Team Members

An AR Manager is also responsible for building the next generation of leaders. They assign roles and responsibilities to AR specialists, set performance targets, and provide regular coaching. 

5. Collaboration across departments:

An AR Manager is also responsible for working with Finance, Sales, and Operations to understand and resolve AR-related issues. An individual performing this role also allows alignment with AR practices, cash flow projections, and business goals.  

What to Include in a JD Template That Appeals to an Ideal Candidate?

A JD is the first sneak-peek into your company’s culture, the role, and what a candidate is signing up for. When creating a JD, make sure they are easy to find and conveys exactly what people have been looking for. Some of the sections you can include are:  

• Job Summary

A comprehensive paragraph that includes the purpose of the role, scope, and value that this role adds to the organization. This section should highlight how the role contributes strategically to the operations.  

• Key Responsibilities

This is an area that candidates focus on first. This list should include the major tasks and be inclusive of everything that the candidate is expected to do when they come on board. This includes AR workflows, leading teams, and driving process improvements. Later, this can also act as a review and performance point.  

• Qualifications

From the education required to technical and soft skills, this section should outline it all. This helps you get rid of candidates who do not match the requirements well in advance. This is critical for managing AR at scale and finding the best fit. 

• Compensation

In case you are unable to provide an exact number for the compensation, share a range or indicate that it’s competitive and aligned with the market benchmarks. Maintaining transparency here boosts trust and helps attract candidates who match your expectations. 

• About the Organization

Incorporating the company’s mission, vision, and values especially gives candidates an idea of whether they will be able to fit in well with the organization. This helps candidates assess alignment and gives them a reason to apply beyond their paycheck.  

• Application Process

Explaining what candidates should expect gives clarity on how to apply and if there are any documents needed. This should include the interview processes, what the next steps are, and so on. This helps maintain clarity, transparency, and a smooth process to make it more accessible.  

How Does an AR Manager Impact Cross-functional Teams? 

One of the most important things for an individual in an AR Manager role is that they can operate alone. They need to work closely to support them in the following areas: 

• Sales & Customer Success: An AR Manager helps the team maintain client communication around billing is proactive and positive.
• Finance & Treasury: AR Managers can help this team with cash inflow forecasts and support liquidity planning.
• Operations: AR Managers help make sure billing is aligned with project milestones and delivery timelines.

This cross-functional nature makes the AR Manager a key bridge between departments, ensuring smooth financial operations without compromising customer experience. 

A generic job description won’t attract a great AR Manager.

To truly improve performance and cash flow, you need a JD that clearly outlines expectations, KPIs, and the strategic importance of the role. Whether you’re hiring in-house or offshore, clarity in responsibilities sets the foundation for strong performance and team collaboration.

Download Accounts Receivable Manager Job Description Free Template

Ready to Hire an AR Manager? We’ve Got You Covered

At Finsmart Accounting, we help firms hire highly skilled Accounts Receivable professionals through our embedded offshoring model. With access to pre-vetted talent, seamless onboarding, and proven workflows, you can build a receivables team that improves cash flow from Day 1.

Want to get started with offshoring faster? Speak to our offshoring expert today:

https://finsmartaccounting.com/usa/free-consultation/