How Much Do Accounts Receivable Managers Make?
Accounts receivable managers play a crucial role in the financial health of a company. They are responsible for overseeing the collection of payments from customers, ensuring that the company’s cash flow remains stable. Given the importance of their role, many people wonder how much accounts receivable managers make. In this article, we will explore the average salary of accounts receivable managers, factors that can affect their earnings, and the benefits of pursuing a career in this field.
Understanding the Average Salary
The average salary for accounts receivable managers can vary significantly depending on several factors, including the industry, company size, location, and level of experience. According to the U.S. Bureau of Labor Statistics, the median annual wage for accounts receivable, payable, and loan managers was $129,590 as of May 2020. However, this figure can vary widely, with some managers earning much more or less.
Factors Affecting Salary
Several factors can influence the salary of an accounts receivable manager:
1. Industry: Certain industries, such as healthcare, technology, and finance, tend to offer higher salaries for accounts receivable managers due to the complexity of their financial operations.
2. Company Size: Larger companies typically have more resources to allocate to their financial teams, which can result in higher salaries for accounts receivable managers.
3. Location: The cost of living in different regions can significantly impact salaries. For example, accounts receivable managers in major metropolitan areas like New York City or San Francisco may earn more than those in smaller cities or rural areas.
4. Experience: More experienced accounts receivable managers with a proven track record of success can command higher salaries. Additionally, those with specialized skills or certifications may also earn more.
5. Education and Certifications: Individuals with advanced degrees or certifications, such as the Certified Professional in Accounts Receivable (CPAR) or Certified Accounts Receivable Manager (CARM), may have a competitive edge in the job market and potentially higher salaries.
Benefits of a Career in Accounts Receivable Management
Despite the potential for high salaries, there are other benefits to pursuing a career in accounts receivable management:
1. Job Security: As long as businesses need to collect payments from customers, there will be a demand for accounts receivable managers.
2. Career Advancement: Accounts receivable managers can progress to higher-level positions, such as financial controller or chief financial officer, within their organizations.
3. Professional Development: The field of accounts receivable management offers opportunities for continuous learning and professional growth through certifications and advanced training.
4. Stable Income: With a steady salary and the potential for bonuses and commissions, accounts receivable managers can enjoy a stable income.
In conclusion, the salary of accounts receivable managers can vary widely based on several factors. While the average salary is around $129,590 per year, there are numerous opportunities for higher earnings through experience, education, and industry-specific skills. A career in accounts receivable management offers job security, potential for advancement, and a stable income, making it an attractive option for those interested in the financial sector.
