Key Responsibility Areas (KRA) & Key Performance Indicators (KPI) for Accounts Receivable Clerk
1. Timely Invoicing and Billing
KRA: Ensuring accurate and prompt invoicing to maintain cash flow and client relationships.
Short Description: Timely creation and sending of invoices.
- Percentage of invoices sent within 24 hours of service delivery.
- Average days sales outstanding (DSO).
- Accuracy rate of invoice details.
- Percentage of overdue invoices resolved within agreed terms.
2. Accounts Receivable Monitoring
KRA: Monitoring outstanding payments and aging reports for effective debt collection.
Short Description: Regularly tracking and managing accounts receivable.
- Percentage of outstanding invoices over 30/60/90 days.
- Collection effectiveness index (CEI).
- Reduction in aged receivables over time.
- Number of collection calls made per week.
3. Payment Reconciliation
KRA: Reconciling payments received with invoices and resolving discrepancies.
Short Description: Matching payments to invoices accurately.
- Percentage of payments reconciled within 48 hours of receipt.
- Accuracy rate of payment matching.
- Reduction in unresolved payment discrepancies over time.
- Percentage of refunds processed accurately and timely.
4. Customer Account Maintenance
KRA: Updating and maintaining customer accounts with current information.
Short Description: Keeping customer records up to date.
- Percentage of accounts with updated contact information.
- Accuracy rate of customer data entry.
- Number of account updates processed daily.
- Customer satisfaction score related to account accuracy.
5. Dispute Resolution
KRA: Resolving billing disputes and discrepancies in a timely and efficient manner.
Short Description: Handling and resolving payment disagreements.
- Average time taken to resolve billing disputes.
- Percentage of disputes resolved in favor of the company.
- Customer feedback on dispute resolution process.
- Reduction in the number of unresolved disputes over time.
6. Cash Application Management
KRA: Efficiently applying cash receipts to outstanding invoices.
Short Description: Allocating payments accurately.
- Accuracy rate of cash application process.
- Percentage of receipts applied within 24 hours of receipt.
- Reduction in unapplied cash over time.
- Percentage of accounts with fully applied payments.
7. Credit Control and Risk Assessment
KRA: Monitoring credit limits, assessing credit risk, and implementing control measures.
Short Description: Managing credit policies and risk evaluation.
- Percentage of accounts reviewed for credit limits quarterly.
- Reduction in bad debt write-offs compared to previous periods.
- Accuracy of credit risk assessments leading to minimized losses.
- Number of credit limit reviews conducted per month.
8. Reporting and Analysis
KRA: Generating reports on accounts receivable performance and analyzing trends.
Short Description: Providing insights through data analysis.
- Frequency of accounts receivable reports generated per week/month.
- Accuracy of data analysis in identifying collection trends.
- Improvement in DSO based on analysis recommendations.
- Implementation rate of process improvements based on analysis findings.
9. Compliance and Audit Support
KRA: Assisting in compliance with regulations and providing support during audits.
Short Description: Ensuring adherence to legal and audit requirements.
- Completion rate of required compliance training annually.
- Number of audit findings related to accounts receivable processes.
- Percentage of audit recommendations implemented successfully.
- Accuracy of documentation provided during audits.
10. Process Improvement Initiatives
KRA: Identifying and implementing process improvements to enhance efficiency and effectiveness.
Short Description: Driving continuous improvement in accounts receivable processes.
- Number of process improvement ideas suggested per quarter.
- Percentage increase in efficiency following process enhancements.
- Employee engagement in suggesting and implementing improvements.
- Reduction in error rates as a result of process changes.
