What Does a Collections Specialist Do?
A collections specialist ensures that outstanding invoices and overdue accounts are resolved in a timely, accurate, and professional manner. Working primarily with businesses or internal finance teams, they monitor account aging reports, contact clients to follow up on unpaid balances, and coordinate with billing or sales departments to reconcile discrepancies.
Unlike outbound call agents, collections specialists typically focus on higher-volume accounts receivable recovery through structured follow-up processes and financial reporting. They play a critical role in maintaining cash flow, reducing delinquency, and supporting broader financial goals.
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Collections Specialist Core Responsibilities
- Monitor aging reports and follow up with customers on past-due invoices
- Investigate payment discrepancies, issue dunning notices, and update account notes
- Communicate with clients via phone, email, or portal regarding payment status
- Collaborate with billing and sales teams to resolve disputes or invoice errors
- Reconcile customer accounts and process adjustments or credits when necessary
- Track KPIs related to collections, such as DSO and recovery rate
- Prepare regular reports for finance or accounting leadership
- Ensure compliance with financial policies and industry regulations
Required Skills and Qualifications
Hard skills
- Experience with ERP or accounting systems (e.g., NetSuite, SAP, QuickBooks)
- Understanding of AR workflows, credit terms, and payment processing
- Proficiency in Excel and reporting tools
- Familiarity with compliance standards and internal controls
Soft skills
- Clear written and verbal communication
- Problem-solving and dispute resolution
- High attention to detail and data accuracy
- Ability to prioritize tasks and meet deadlines
Educational requirements
- High school diploma or GED required
- Associate’s or bachelor’s degree in accounting, finance, or related field preferred
Certifications
No certifications required, though training in AR or financial systems is a plus.
Preferred Qualifications
- Experience working in B2B or high-volume receivables environments
- Familiarity with collections metrics and cash application
- Prior work in credit/collections for finance, healthcare, or SaaS organizations
- Knowledge of SOX compliance or other audit standards
National Average Salary
Collections specialist salaries vary by experience, industry, organization size, and geography. Click below to explore salaries by local market.
The average national salary for a Collections Specialist is:
$45,630
Sample Job Description Templates for Collections Specialists
Entry-Level Collections Specialist
Position Overview
An entry-level collections specialist assists with recovering outstanding payments by supporting routine account follow-up and recordkeeping tasks. They monitor aging reports, update account statuses, and communicate with customers under the guidance of senior team members.
Responsibilities
- Review daily aging reports to identify delinquent accounts
- Contact customers via phone or email to follow up on unpaid invoices
- Assist in reconciling payments and updating customer records
- Escalate unresolved issues to senior specialists or supervisors
- Maintain accurate documentation of collection activities
- Learn company policies, ERP tools, and collections processes
Requirements
Hard skills
- Basic knowledge of accounting or billing systems
- Proficiency with Excel and email communication
- Ability to learn ERP or CRM software
Soft skills
- Detail-oriented and organized
- Willingness to learn and follow procedures
- Strong communication and follow-up
- Dependability and professionalism
Education
- High school diploma required
- Associate’s degree in business or accounting preferred
Senior Collections Specialist
Position Overview
A senior collections specialist manages complex or high-value accounts and is responsible for resolving payment disputes, maintaining customer relationships, and supporting financial reporting. They play a key role in ensuring AR health and DSO reduction.
Responsibilities
- Manage outreach for aging accounts with higher balances or risk
- Resolve invoice disputes and negotiate payment arrangements
- Monitor and report on KPIs such as DSO and recovery rate
- Collaborate with sales, billing, and customer service to ensure accuracy
- Recommend write-offs or escalations when appropriate
- Support training and mentoring of junior collections staff
Requirements
Hard skills
- Strong ERP skills (e.g., NetSuite, Oracle, SAP)
- Excel reporting and aging reconciliation
- Knowledge of credit terms, payment plans, and compliance
Soft skills
- Proactive problem-solving
- Effective customer and internal team communication
- Strong time management and prioritization
- Ability to mentor or guide others
Education
- Associate’s or bachelor’s degree in accounting, finance, or related field preferred
Lead Collections Specialist
Position Overview
A lead collections specialist supervises day-to-day collections operations and ensures team performance aligns with organizational goals. They monitor metrics, resolve escalations, and help improve policies and processes.
Responsibilities
- Oversee daily activities of the collections team
- Assign and prioritize account workloads
- Lead team training, onboarding, and performance coaching
- Manage escalated or strategic account disputes
- Analyze AR trends and recommend process improvements
- Report progress and risk areas to management
Requirements
Hard skills
- Advanced use of AR and ERP platforms
- Financial reporting and KPI tracking
- Strong understanding of collection laws and internal controls
Soft skills
- Team leadership and communication
- Performance monitoring and coaching
- Strategic thinking and issue escalation
- Process documentation and cross-team collaboration
Education
- Associate’s or bachelor’s degree required
- Leadership or finance certifications are a plus