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KRA & KPI Accounting Sector Introduction...
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JOB DESCRIPTION AND RESPONSIBILITY
KEY RESULT AREA(KRA) & KEY PERFORMANCE INDICATOR(KPI)
Accounting Sector
Accounts Receivable Management
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Introduction
Accounts receivable managers are accounting professionals responsible for the collection of payments from clients on behalf of the company They supervise a team of clerks and oversee the timely and accurate invoicing of customers and the handling of overdue payments according to the company’s policies. The accounts receivable manager supervises the accounts receivable department and works closely with customers to ensure that payment deadlines are met.
Do You Want to be an Accounts Receivable Manager?
To build a career as an Accounts Receivable Manager you need to first understand the Job profile and responsibilities of the job
This blog gives you a detailed idea of what it is like to become an Accounts Receivable Manager in the Accounting and Finance Industry of India.
Soft Skill, Technical Skills and Certification:
Analytical skills:
Analytical skills are very much important for an Accounts Receivable Manager in order to analyze the accounts to find out who owes the business money and the creditors whom the business owes. It is an important part of the job and a core task.
Interpersonal and Communication Skills:,
They need to have good Interpersonal and Communication Skills in order to talk to people in the organization such as the sales department, accounting department, and other relevant departments. They also need to call creditors or debtors who owe money and then talk to them. They need to be polite with debtors and maintain good relations with them and good communication skills are required for it.
Math and Accounting Skills:
Math and Accounting skills are basic requirements for an Accounts Receivable Manager. They need to have good math and accountancy skills in order to analyze the account, call debtors and ask them to return the money.
IT and Computer skills:
Computers are a necessity and almost mandatory for any office job nowadays and Accounting jobs are no exception. The Accounts Receivable Manager needs to know different accounting application software that is relevant to the job role.
Job description
Account receivable managers are responsible for managing the accounts of a company or organization while working with vendors, suppliers, and other third parties to ensure that their clients receive the best possible service while paying the lowest possible price. They are required to make sure that all payments are made on time and in full which includes tracking down delinquent accounts or negotiating payment plans with clients who are having trouble making timely payments.
Job Roles and Responsibilities
- They have to bargain with customers who are unable to pay their bills on time
- Review the age of accounts receivable to determine if they need to be written off
- Communicating with customers and determining reasons for why they cannot pay their bills on time or why they have not paid their bills yet
- Implement deadlines for invoicing and payment collection
- Monitoring the invoicing and money collection processes
- Ensuring the timely collection of payments
- They are also required to Determine how much cash is available to meet short-term obligations
Key Result Areas(KRA)
Key Performance Indicator(KPI)
Sr. No. | KRA | KPI |
1 | How many accounts and incoming payments in compliance with financial policies and procedures are executed in a month | No. of accounts and incoming payments in compliance with financial policies and procedures executed in a month |
2 | How many day-to-day financial transactions, including verifying, classifying, computing, posting and recording accounts receivables’ data completed in a month | No. of day-to-day financial transactions, including verifying, classifying, computing, posting and recording accounts receivables’ data completed in a month |
3 | How many bills were prepared, invoices and bank deposits executed in a month | No. of bills prepared, invoices and bank deposits executed in a month |
4 | Reconcile the accounts receivable ledger to ensure that all payments are accounted for and properly posted. | No. of Reconciliations of accounts receivable ledger to ensure that all payments are accounted for and properly posted in a month |
5 | How many discrepancies were verified and resolved clients on billing issues in a month | No. of discrepancies verified and resolved clients on billing issues in a month |
6 | How many payments of invoices were executed for clients in a month | No. of payment of invoices executed for clients in a month |
7 | How many financial statements and reports and accounts receivable status reports presented in a month | No. of Financial statements and reports and accounts receivable status report presented in a month |
Example of KRA VS KPI Mapped in Organisation and Reporting
Sr. No. | Reporting by the employee | Reporting by the employee |
1 | How many accounts and incoming payments in compliance with financial policies and procedures are executed in a month | Accounts and incoming payments in compliance with financial policies and procedures executed in a month =15 |
2 | How many day-to-day financial transactions, including verifying, classifying, computing, posting and recording accounts receivables’ data completed in a month | Day to day financial transactions including verifying, classifying, computing, posting and recording accounts receivables’ data completed in a month =45 |
3 | How many bills were prepared, invoices and bank deposits executed in a month | No.of bills prepared, invoices and bank deposits executed in a month =22 |
4 | Reconcile the accounts receivable ledger to ensure that all payments are accounted for and properly posted. | No.of Reconciliation of accounts receivable ledger to ensure that all payments are accounted for and properly posted in a month =15 |
5 | How many discrepancies were verified and resolved clients on billing issues in a month | No.of discrepancies verified and resolved clients on billing issues in a month |
6 | How many payments of invoices were executed for clients in a month | No. of payment of invoices executed for clients in a month =10 |
7 | How many financial statements and reports and accounts receivable status reports were presented in a month | No. of Financial statements and reports and accounts receivable status report presented in a month =3 |
The Accounts Receivable Manager typically spends the majority of the work day on a desk in front of a computer screen, filing papers, making copies, reviewing reports, and checking invoices. The Account Payable specialist usually works from 9 to 5 but the timing can change depending on the organization they are working in. They share an office with other specialists or have a desk in a central, open location. But it is common for all Accounts Receivable Managers to interact with many of the other employees throughout the day.
Salary
The Average Salary for a Accounts Receivable Manager in India can range somewhere between 4 Lakh to 8 lakh INR per annum.
The Amount may vary through different banks, and cities depending on workflow and workload.
Conclusion
Every business wants to manage the expenses of their companies and minimize costs in order to increase the profit margin. This is one of the core tasks of an Accounts Receivable Manager. The work is mostly a desk job without much physical demand and the pay is also relatively high as a result it is one of the most preferred jobs. Anyone with a passion for accounting, math, and taking money decisions has a good scope of building a perfect career out of This Job role.
To get a Detailed Overview of the Accounting Sector, Click Here.Â
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