The Duties of an Accounts Receivable Supervisor in an Advertising Agency
The duties of an accounts receivable supervisor in an advertising agency are similar to those of her peers in other industries. While AR supervisors and other accounting managers may handle internal processes slightly differently depending upon the industry in which they work, accounting basics and accounts receivable management don't change.
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Accounts Receivable Oversight
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Accounts receivable is a general ledger account used to capture invoicing data for a specific period by client, project or job. The numbers in this account represent earned income not yet received, but completed and invoiced. One of the duties of an accounts receivable supervisor is to track and investigate the transactions that post to this account for accuracy and timeliness. One aspect of her job is to verify invoices are created as per the client’s needs.
AR Aging
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Advertising agencies, like other firms, submit invoices to clients with payment terms on the invoice. Terms for payment include how to pay the invoice, when to pay it and where to pay it. The accounts receivable supervisor manages accounts receivable aging, which addresses the age of an invoice in the account and ensures accountants are on top of collections from clients to avoid late payment of invoices. If the advertising agency’s terms are net payable in 10 days, invoices past net 10 are overdue and require the accountant to contact or “dun” the client and insist upon payment. The AR supervisor stays on top of the AR aging and reminds accountants to perform the collection activities sometimes necessary to get clients to pay their bills on time. Net payments refer to any payments made after taking discounts or credits.
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Cash Receipts
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Another aspect of the accounts receivable supervisor’s job in an advertising agency is to post payments against invoices when received. She would date-stamp checks and enter the data from them into the cash account in the accounting system. As she oversees the activity of this account, she would also be responsible for receiving the payments against created invoices in the computer system. This also would include making bank deposits and handling all bank reconciliations.
Staffing Management
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An AR supervisor in the advertising agency might have several staff members who report to her. This would include all accountants responsible for generating invoices in the company; all clerks affiliated with filing AR invoices as well as any ancillary people assigned to her department. In some companies, the duties of an AR supervisor are gathered under the auspices of accounting manager and in these cases, she would be responsible for not only accounts receivable, but accounts payable and payroll as well.
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References
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