Most professionals would agree that understanding potential salary ranges is an important consideration when evaluating career options.
In this post, you'll get a clear picture of the earnings potential for accounts receivable clerks, including average salaries, pay ranges, and factors impacting income.
We'll look at national averages and regional differences, entry-level vs experienced pay, as well as career growth opportunities to help you determine if this is the right path forward.
Introduction
Accounts receivable (AR) clerks are responsible for managing a company's outstanding customer invoices and payments. Their primary duties include sending invoices, tracking payments, reconciling accounts, and following up on late or missing payments. AR clerks play a crucial role in ensuring a steady cash flow for any business that offers credit sales.
Definition of an Accounts Receivable Clerk
An accounts receivable clerk is an accounting professional who is responsible for tracking, billing, and collecting money owed to a company by its customers. Their main duties include:
- Preparing and sending invoices to customers
- Recording customer payments in the accounting system
- Reconciling customer accounts
- Following up on late or missing payments through emails or phone calls
Essentially, an AR clerk handles anything related to managing a company's accounts receivable process to ensure customers pay for received goods or services.
Overview of Their Main Job Responsibilities
The core responsibilities of an accounts receivable clerk typically include:
- Generating and sending invoices to customers once goods/services have been delivered
- Posting payments to customer accounts when checks or transfers are received
- Following up through emails and calls on any late or missing payments
- Reconciling accounts receivable subsidiary ledgers with the general ledger
- Providing data and reports to inform credit and collection decisions
- Issuing refunds or payment adjustments when needed
- Fielding customer queries regarding account status, payments, etc.
AR clerks handle critical back-office financial transactions, so attention to detail, organization, communication skills, and problem-solving abilities are all key for success in this role.
Average Salary and Pay Range
National Average Salary
The national median salary for accounts receivable clerks is $37,110 per year according to the Bureau of Labor Statistics (BLS). This equates to an hourly wage of around $18. Entry-level accounts receivable clerks tend to start around $30,000 per year, while experienced professionals with over 5 years of experience can earn upwards of $45,000 annually.
Starting vs. Experienced Salaries
Entry-level accounts receivable clerks straight out of school can expect starting salaries around $30,000 per year or $15 per hour. With a few years of experience handling billing, collections, reporting, and reconciliation, salaries typically rise to the national median of $37,110. High performers with 5-10 years of experience can command salaries approaching $50,000 per year. More specialized experience in particular industries or accounting systems can enable experienced accounts receivable clerks to earn towards the higher end of that range.
Salary Differences by Location and Industry
Salaries for accounts receivable clerks can fluctuate based on geographic region and industry. For example, an accounts receivable clerk working in finance or accounting firms in major metropolitan areas like New York and San Francisco can expect to earn 10-15% above national median salaries. Meanwhile, accounts receivable clerks in manufacturing, retail, or healthcare in suburban and rural areas typically earn within 5% of the national median. Factors like local costs of living, industry profit margins, and regional economic strength impact accounts receivable clerk salary ranges.
Factors That Impact Salary
When considering an accounts receivable clerk role, one of the key questions is: what could I earn in this position? Several variables influence how much an accounts receivable clerk makes. Understanding these factors provides helpful context when evaluating job opportunities in receivables management.
Level of Education and Certifications
Higher levels of education and professional certification tend to correlate with increased salary potential for accounts receivable clerks. While some entry-level roles may not require a college degree, pursuing one can expand opportunities. Common majors include accounting, finance, business administration, and economics.
Obtaining certification as a Certified Accounts Receivable Professional (CARP) also signals advanced expertise. CARP certification involves passing three exams on topics like collections strategies, credit risk assessment, and regulations. Accounts receivable clerks with a CARP typically earn 10-15% higher salaries.
Years of Experience
As with most fields, accounts receivable salaries also rise with more years on the job. Those just starting out as clerks often make around $30,000-$40,000 per year. With 3-5 years experience under their belt, clerks may earn closer to the national average of $48,000.
For clerks with over 5 years managing high volumes of invoices and collections, salaries can reach $60,000-$75,000 depending on additional skills and certifications obtained over their career.
Size of Company
Larger corporations tend to pay higher accounts receivable clerk wages than small or mid sized businesses. Multinational companies managing billions in revenue simply have more resources to attract top talent in receivables departments. Roles at Fortune 500 corporations often pay 20-30% above average market rates.
That said, accounts receivable clerks can prosper at companies of any size. Small businesses can still offer fulfilling job opportunities for those interested specifically in wearing multiple hats and working closely with leadership.
In summary, education level, years on the job, and employer size all impact accounts receivable clerk earnings. Weighing these factors can help clerks evaluate roles and determine whether salary offers are competitive.
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Job Outlook for Accounts Receivable Clerks
Current Job Openings and Availability
The job market for accounts receivable clerks is currently very strong. According to the Bureau of Labor Statistics (BLS), there were approximately 1.3 million bookkeeping, accounting, and auditing clerk positions in the US as of 2021. With businesses continuing to grow and expand operations, the demand for qualified accounting support staff remains high.
Active job listings on sites like Indeed, ZipRecruiter, and LinkedIn show thousands of open accounts receivable clerk roles across the country. Hiring demand is especially high in major metro areas where large corporations have headquarters and regional satellite offices. However, most positions can be filled remotely, allowing businesses to tap into a wider talent pool regardless of geography.
With new accounting regulations and reporting standards in effect, companies require dedicated staff to ensure financial records and statements adhere to the latest compliance guidelines. This steady need for accounting expertise and support indicates no shortage of accounts receivable clerk opportunities now and in the near future.
Projected Job Growth
The BLS projects employment for bookkeeping, accounting, and auditing clerks to grow by 5% from 2021-2031, keeping pace with the average across all occupations. While automation and AI may impact certain routine transactional tasks, human oversight, judgment and strategic decision making will still be required in accounting functions. With over 400,000 current professionals expected to exit the workforce due to retirement and other factors, there will be a consistent need for qualified replacements to fill critical support roles on finance teams.
Businesses across banking, healthcare, retail, technology, manufacturing, and other major industries will continue expanding operations and requiring dedicated accounting staff. Small businesses also rely heavily on outsourced services for their bookkeeping and reporting needs. With so many companies dependent on accurate financial records for strategic planning and regulatory compliance, demand for accounts receivable expertise will remain strong for years to come.
Career Development Opportunities
Vertical Promotion Paths
Accounts receivable clerks have several options to advance their careers within the receivables department. With experience, clerks can be promoted to senior accounts receivable clerk or lead accounts receivable clerk roles. These positions often come with increased responsibilities such as training new clerks, overseeing higher value accounts, and taking on special projects.
After 3-5 years of experience, clerks may also have the opportunity to be promoted to an accounts receivable supervisor or manager position. These roles involve managing a team of clerks, setting department policies and procedures, monitoring metrics and KPIs, and reporting up to accounting leadership.
Cross-Training into Other Areas
In addition to vertical promotions, accounts receivable clerks can also transition into related accounting functions over time. With their background in receivables, experienced clerks are well-positioned to cross-train into billing, collections, or general ledger roles.
Billing involves generating invoices, tracking sales and shipments, and recording accounts receivable entries. Collections focuses on contacting late-paying customers, negotiating payment plans, and resolving disputes. General ledger roles record day-to-day financial transactions and produce financial statements.
Cross-training allows clerks to diversify their skills and advance their careers by moving into new accounting specializations. This can open up additional promotion opportunities beyond the receivables department.
Conclusion and Key Takeaways
Accounts receivable clerks play a critical role in managing payments and cash flow for companies. Their core responsibilities around invoicing, collections, and reconciliations make them invaluable to keeping finances running smoothly.
Based on the salary research summarized in this article, accounts receivable clerks in the US can expect to earn:
- An average base salary between $35,000 to $45,000, with top earners making up to $55,000
- Additional compensation from bonuses around 1-5% of base pay
- Strong job outlook over the next decade, with over 100,000 openings expected nationally
Some of the key factors that can increase pay include industry, company size, years of experience, additional certifications, and expanded duties beyond core AR tasks.
Businesses that leverage remote staffing solutions can benefit from significant payroll savings when hiring specialized accounting talent. This allows them to invest more resources into core operations and strategic projects for growth.
