Meaning of “to be Accounts Receivable for someone”

Question

I understand what accounts receivable are, and I understand what factoring is. But I don't understand what the phrase "to be accounts receivable for someone" means, e.g. "I'm accounts receivable for company X".

Does it mean I owe company X money, or does it mean that I'm collecting the money other people owe to company X for them? Or something else?

Answer 1

This means that you perform the Accounts Receivable functions for the company.

This could mean that either:

• you are employed by the company as a salaried full-time employee, and are the only one doing this job (otherwise you would likely say "I work in Accounts Receivable for XYZ company" , if there was more than one full-time employee in the department)

• or, quite possibly, that you are performing Accounts Receivables as a service, and charging/being paid as a separate entity /independent contractor/ company for those services. Furthermore, you could be paid:

  • on an hourly basis
  • per invoice
  • by the number of accounts
  • per total $$ dollar volume / a percentage of $$ billed
  • a flat monthly recurring subscription / fee for your services