[vc_row][vc_column][vc_column_text]Our customers are engaged in a wide variety of industries including small business to large enterprises who represent industries including wholesale distribution, manufacturing, construction, medical services, legal services, professional and consulting services, and others; no matter which industry they work in, the question has always been the same. “How Many Employees Do I Need for Effect Accounts Receivable Management?”

The answer to this question depends on several factors, but the most important of them being the volume of accounts and invoices your company handles.


The size of your credit department may be dependent not on revenue per employee, but rather, on revenue per active customer account or on the number of invoices managed each month. This makes a lot of sense when you think about it.

To illustrate, let’s consider a capital equipment manufacturer who sells 20 machines a year to less than 20 customers. They can probably manage their accounts receivable much easier than a distributor of commoditized products producing the same annual revenue but at much lower margins. The distributor might have thousands of invoices and thousands of customers compared to the manufacturer.

According the CRF report “On Whose Terms?” 39% of business invoices are past due. If we assume that each of these will require some action from the credit professional then we can back into the workload for companies based on the number of invoices they manage on an annual or monthly basis.

A well-trained credit and collection professional will be able to resolve most issues in a short-period of time (perhaps as fast as 30 minutes) but they will inevitably have to manage more complex disputes and difficult accounts that could require many hours or days of effort. It is safe to assume that it probably takes at least 30 minutes (probably much more) to resolve non-payment issues.

This means that a company generating 1,000 monthly invoices likely spends close to 100 hours per month managing past due accounts or the equivalent of about 12 days per month. This more than half of the available work days in the month and the credit professional typically has other responsibilities within the organization such as invoice creation, cash application, credit risk analysis, etc.

It is therefore safe to estimate that most companies should staff at least one full time credit professional for every 1,000 invoices created each month (or at least one part-time employee for 500 monthly invoices) – especially if they are not using software for invoice delivery or collections automation. The same principle holds true if they are managing 500 to 1,000 active customers per month assuming that each customer has 1-2 open invoices each.

For each full-time credit employee a company will also need to have a back-up resource as well as a supervisor. These positions do not necessarily facilitate a full time position but are important considerations in respect to responsibilities for other staff members inside and outside the credit and collection department.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_cta h2=”STAFFING AN EFFECTIVE ACCOUNTS RECEIVABLE TEAM” txt_align=”center” color=”turquoise” el_width=”xs” add_icon=”bottom” i_type=”entypo” i_icon_entypo=”entypo-icon entypo-icon-doc-text” i_color=”grey” i_background_style=”rounded” i_background_color=”turquoise” i_size=”xl” i_on_border=”true” i_link=”url:https%3A%2F%2Fanytimecollect.com%2Fstaffing-effective-accounts-receivable-team%2F|||”]

How exactly do you know if your team needs a full-time employee or if you should skip out?
Read our guide here.