How Much Does an AR Manager Make? (2025)
Understanding the AR manager salary is important for job seekers and employers to ensure fair compensation and make informed decisions.
In the United States, the average AR manager salary in 2025 is $103,710 per year. Additionally, the HYPERLINK "https://www.bls.gov/ooh/management/"Bureau of Labor Statistics (BLS) projected 1.2 million annual openings in management occupations, including the AR manager making this a stable and promising career choice. making this a stable and promising career choice.
This guide provides everything you need to know about the AR manager role, including salary expectations, factors affecting compensation, and answers to frequently asked questions.
What Does an AR Manager do?
An accounts receivable (AR) manager oversees the AR department, ensuring timely payment collections, tracking outstanding accounts, customer accounts, delinquent accounts and maintaining accurate financial records. They manage aging reports, direct reports, cash receipts, negotiate payment terms, and supervise a team of AR clerks or analysts to optimize processes.
Typically, an AR Manager holds a bachelor's degree in accounting or finance and has 5+ years of experience, including 1-3 years in a supervisory role. They report to senior executives and ensure adherence to deadlines and financial policies, requiring a solid grasp of accounting principles and ERP systems.
What is AR Manager Salary Overview?
As of January 01, 2025, the accounts receivable (AR) manager average salary in the United States is $103,710 per year or $50 per hour.
Based on Salary.com salary data, the AR manager salary range is between $77,575 to $135,290 per year, with most earning between $90,030 and $120,240. This figure is slightly above the national average for similar managerial roles. The AR manager salary per month is $8,643 on average, with monthly pay ranging from $6,465 to $11,274.
AR managers typically earn an average of $50 per hour, with hourly rates ranging from $37 to $65. The average weekly salary for an AR manager is $1,994, with weekly pay ranging from $1,451 to $2,356.
2025 AR Manager Average Salary: $103,710 per year ($50 per hour)
Meanwhile, the median core compensation for AR managers is $103,710 per year, including salary and bonuses, and varies depending on the percentile.
| Percentile | Salary + Bonus |
|---|---|
| 10th Percentile | $79,046 |
| 25th Percentile | $93,850 |
| 50th Percentile (Median) | $110,110 |
| 75th Percentile | $130,000 |
| 90th Percentile | $148,109 |
The average total compensation for AR managers is $153,210, according to Salary.com. The total compensation package includes benefits like healthcare ($8,352), time off ($13,552), and Social Security ($8,423), which make up 27.9% of the total compensation.
| Core Compensation | ||
|---|---|---|
| Median | % of Total | |
| Base Salary | $103,702 | 67.7% |
| Bonus | $6,403 | 4.2% |
| Value of Benefits | ||
| Social Security | $8,423 | 5.5% |
| 401K/403B | $4,625 | 3.0% |
| Disability | $2,202 | 1.4% |
| Healthcare | $8,352 | 5.5% |
| Pension | $5,946 | 3.9% |
| Time Off | $13,552 | 8.8% |
| Total Compensation | $153,210 | 100% |
What Can Affect AR Manager Salaries?
The AR manager salary is influenced by several factors, including experience, location, education, and industry demand. Below is a breakdown of how these factors can impact earnings:
By experience level
Salary.com data shows that entry-level AR managers with less than one year of experience earn an average salary of $97,857 per year. While AR managers with over eight years of experience can expect to earn an average salary of $104,634 per year.
| Level | Salary |
|---|---|
| Entry Level AR Manager | $97,857 |
| Intermediate Level AR Manager | $98,464 |
| Senior Level AR Manager | $99,882 |
| Specialist Level AR Manager | $101,502 |
| Expert Level AR Manager | $104,634 |
By geographic location
The salary of AR managers in the United States varies by location due to factors like cost of living, the local economy, and industry presence.
The highest paying cities are San Jose, CA, San Francisco, CA and Oakland, CA. The average salary for AR managers here in these cities is $130,145 to $126,516 per year, while other cities like Bridgeport, CT and Newark, NJ offer lower average salaries at $117,494 and $117,183, respectively.
| City | 25th Percentile | 50th Percentile | 75th Percentile |
|---|---|---|---|
| San Jose, CA | $112,979 | $130,145 | $150,897 |
| San Francisco, CA | $112,529 | $129,627 | $150,296 |
| Oakland, CA | $109,828 | $126,516 | $146,689 |
| Bridgeport, CT | $101,996 | $117,494 | $136,228 |
| Newark, NJ | $101,726 | $117,183 | $135,867 |
By skills
High-demand skills contribute to salary increases for accounts receivable managers. According to Salary.com's Real-time Job Posting Salary Data Report, an accounts receivable manager earns a 9.63% salary increase with accounting management, while those with financial statements expertise can receive a 9.45% increase. The demand for these skills is 6.61% and 15.07%, respectively.
Additional skills that can increase the salary of AR managers include:
| Skill | Salary Growth | Demand (%) |
|---|---|---|
| Accounting Management | +9.63% | 6.61% |
| Financial Statements | +9.45% | 15.07% |
| SAP (Systems Applications and Products) | +8.62% | 7.58% |
| Account Reconciliation | +7.76% | 6.49% |
| Internal Controls | +7.58% | 6.72% |
| Accounts Receivable | +5.91% | 66.22% |
By education
Educational qualifications can have a significant impact on AR manager salary. The most common educational background for AR managers includes a bachelor's degree, held by 39.4% of professionals in the role. A smaller percentage holds an associate's degree (18.8%), while a notable portion has a master's degree (7.1%).
| Degree Level | % of AR Managers with This Level of Education |
|---|---|
| High School Diploma or Technical Certificate | 32.8% |
| Associate's Degree | 18.8% |
| Bachelor's Degree | 39.4% |
| Master's Degree | 7.1% |
How to Become an AR Manager
Here's how to become an accounts receivable manager:
- Earn a bachelor’s degree: Get a bachelor’s degree in accounting, finance, business, or a related field. This is typically required to start a career as an accounts receivable manager.
- Gain experience: Work in accounts receivable for at least five years, including three years in a supervisory role. Start with entry-level positions like AR clerk to gain hands-on experience with billing, collections, and managing invoices.
- Develop leadership skills: As you gain experience, take on leadership responsibilities. Manage teams, train staff, and handle the full accounts receivable process to prepare for a managerial role.
- Master accounting software: Become proficient in tools like Excel, PowerPoint, and other accounting software. This is necessary for accurate financial reporting and improving efficiency.
- Apply for AR manager roles: Once you have the required experience and skills, start applying for accounts receivable manager positions. Highlight your experience in managing AR processes, leading teams, and working with financial software.
What are the FAQs about AR Manager Salary?
Here are the common questions about the AR manager salary:
What is the average accounts receivable manager salary?
The average salary of an accounts receivable manager job in the United States as of January 2025 is $103,710 per year. The salary typically ranges from $77,575 to $135,290, depending on factors like experience, location, and company size.
What is the highest pay for AR manager?
The highest accounts receivable (AR) manager salary is $135,290 per year, or about $65 per hour. This higher salary is typically offered to AR managers with significant experience, advanced skills, and expertise. It can also reflect positions in high-cost living areas or with large companies that require more complex financial and risk management.
What is the lowest pay for AR Manager?
The lowest accounts receivable (AR) manager salary is $77,575 per year, or approximately $37 per hour. This typically applies to entry-level positions or roles in areas with lower costs of living, or to companies with smaller financial operations.
