Accounts Receivable Collections Associate

Job Description

Job Description

Job Description

Credit Collection Associate
Reports To: Billing/Accounts Receivable Manager
Work Hours: Monday–Friday, 8:00 AM – 5:00 PM (1-hour lunch), hybrid schedule (2 days WFH, 3 days in office)
Position Summary
The Credit Collection Associate is responsible for managing customer credit risk and driving timely collection of outstanding receivables. This role ensures accurate customer account maintenance, proactive credit limit evaluation, and effective resolution of past-due balances. The associate collaborates with internal teams including Customer Service, Sales Team and Finance to uphold credit policies and optimize cash flow. 80% of the role is collections, the 20% of the rest are the other aspects. They are moving to SAP in a year. 
Key Responsibilities
Credit Management

• Evaluate and maintain customer credit limits and risk categories based on payment behavior and account history.
• Respond to credit check requests within the same business day; urgent requests within 2 hours.
• Conduct weekly AR reviews and flag high-risk accounts for immediate action.
• Monitor Days Sales Outstanding (DSO) and maintain it at or below 45 days.
• Propose quarterly/weekly updates for high-risk or high-volume accounts.

Collections

• Monitor aging reports and initiate follow-ups via email and phone.
• Escalate unresolved issues and coordinate with internal teams to resolve disputes.
• Send monthly statements to customers who request them.
• Prioritize resolution or write-off review for accounts aged 120+ days.

Customer Account Setup & Maintenance

• Run D&B reports, collect credit references, and set up new accounts in SAP and IKan.
• Maintain customer master data including terms, contacts, shipping instructions, and billing preferences.

Dispute Resolution

• Collaborate with Customer Service to resolve short payments and discrepancies.
• Ensure resolution of disputes within 5 business days.

Reporting & Analysis

• Track DSO and aging trends to identify risk exposure.
• Flag high-risk accounts for immediate action during weekly AR reviews.
• Support monthly reporting and reconciliation efforts.

Team Collaboration

• Provide backup coverage for team members and assist with overflow emails.
• Participate in special projects including automation initiatives and CRM case follow-ups.

Performance Metrics
Collection Management Aging Bucket Per Customer

Metric

Target

Collection Success Rate

? 80–95% TBD

31–60 Days Past Due

? 5% – Acceptable short-term delays; monitor for trends

61–90 Days Past Due

? 2% – Should be actively followed up by collections

91–120 Days Past Due

? 2% – High risk of delinquency; requires escalation

120+ Days Past Due

? 1% – Critical aging; should be prioritized for resolution or write-off review

Credit Management

Metric

Target

Credit Check Response Time

? 1 business day (urgent: ? 2 hours)

AR Outstanding Review Frequency

Weekly full review; high-risk accounts flagged

DSO Monitoring

? 45 days

Credit Limit & Risk Category Review

Quarterly updates for high-risk/high-volume accounts

New Account Setup Timeliness

Metric

Target

Setup Completion

? 95% within 1–3 business days with D&B, information and references

General AR Metrics

Metric

Target

Dispute Resolution Time

? 5 business days

Monthly Statement Delivery

100% of requested statements sent

Customer Record Accuracy

? 99%

Aging Follow-Up Rate

? 90% of accounts followed up within expected timeframe

Credit/Debit Memo Timeliness

? 80% resolved within the same calendar month

Expectations

• Maintain professionalism in all communications and uphold company standards.
• Partner with the Billing/AR Manager to ensure alignment on credit strategy and account priorities.
• Support continuous learning and provide training resources to peers.
• Participate in structured performance feedback sessions every 6 months.

Remote Work Expectations & Metrics
Collection Associate works remotely two days per week and is expected to be available and responsive during standard business hours (8:00 AM – 5:00 PM). She should remain active on Microsoft Teams, respond to messages within 20–30 minutes when working from home, and complete all assigned tasks  based on the deadlines assigned . The associate is also expected to be available to work at the office when needed for special projects, training, or any other work-related requirements. Attendance, training participation, and responsiveness are monitored to ensure consistent performance while working from home.
Working from home must be  seamless and without disruptions . All internal and external customers should continue to receive  excellent customer service without compromise. If any issues arise that impact our ability to deliver that level of service,  remote work will no longer be an option , and the employee will be required to work  full-time from the office .
To help maintain uninterrupted service, it is  highly recommended that employees schedule  vacation time, doctor appointments, and other personal commitments during their  WFH days whenever possible. This ensures that in-office days remain fully dedicated to team collaboration and customer support.
Connectivity Issues While Working from Home (WFH)
If you experience connectivity issues and are unable to connect while working remotely, you are expected to either:

• Report to the office , or
• Use a vacation day if the issue cannot be resolved.

It is your responsibility to  communicate and document the issue by reaching out to  IT support via phone or chat . Please make every effort to resolve the problem  promptly to minimize disruption to work.
Remote work is a  privilege , not a right, and it depends on our ability to consistently meet performance and service expectations.
Key Responsibility: Collaboration & Accountability via Teams
All employees are expected to use  Microsoft Teams as the primary platform for:

• Real-time collaboration with colleagues
• Task assignment and tracking
• Maintaining accountability for deliverables and deadlines
• Prompt communication through chats, calls, and group messages.

Associate is expected to remain active and responsive on Microsoft Teams, with a response time of -1-2 hours when in the office  unless on a lunch break or has a justified exception . Collaborates effectively across departments, ensuring timely communication, task follow-through, and support for team initiatives.
Consistent engagement on Teams is essential to ensure transparency, productivity, and team alignment—regardless of work location.
Expectation : Employees are required to work from the office  at least 3 days per week .
Excluding Vacation time and sick time.