Tools
Do You Think Back Office Is Not Important For An Organisation?
Post date: 2020-06-18 05:52:19 Index
The back-office is not as equally important as the front office?
Back-office: the pillar of the organization’s operational and financial success
Data Management
Market Research
Processing of Projects
Finance & Accounting
Final Thought
The back office is the non-client facing part of an organization that is powered by administration and support personnel. The reliability and efficiency of back-office confirm the health of the overall business and its functions include record maintenance, accounting, settlements, clearances, and regulatory compliance.
As a customer or client, you may only imagine the storefront, brands, products, marketing, and services campaigns; but behind the desirable offering and attractive exterior there is well functioning back office at the heart of any successful business. In simple words, the back office is the lifeline of every business.
The back-office is not as equally important as the front office?
Wrong.
Whether you want to be a part or front office (e.g., marketing, sales, and customer support), or middle office (e.g. risk management) or the back-office (e.g. administrative and support services) depends on your career aspiration and what work environment you want to be in.
Back office technologies are related to support systems that help the front office to keep afloat. And the technologies used in back-office vary with function and responsibilities. The expertise expected in the back office is mainly administrative-based. These skills include projects and claims processing, market research, behaviour analysis, and market trends, data entry and management, and accounting and finance responsibilities.
Back-office: the pillar of the organization’s operational and financial success
The back office of the organization assists to build up the framework of the overall business by commencing and sustaining effective business functions. In this article, we have discussed back office executive responsibilities and how the engagement and coordination of the back office help to build a successful business transaction.
Data Management
Data management, one of the vital parts of back-office responsibility. It makes the data available for the company after drafting, collecting, storing, verifying, organizing, protecting, and processing essential documents. And it is solely back-office executive's responsibility to draft, authenticate, prepare, and format any presentation and documents that stick to legal, contractual, and organization policies.
Importance of Data Management
- Productivity: with good data management, your company becomes more organized and productive.
- Cost efficiency: with data management, your company can avoid unnecessary extra costs.
- Security risk: proper data management with data security can keep your information safe and never ends up in the wrong hand.
- Accurate decision: it helps that all the employees got the recent information so that analyzing them your company ends up with the most accurate decision.
Market Research
Market research is the most important tool to get an overview of your business growth rates, sales, and state-of-the-art product developments. Complete market research helps to set achievable goals, develop effective strategies, and to make well-informed decisions. Following and analyzing market trends and behaviour a back office executive becomes enable to understand the current as well as future impact circumstances on the company. without this, the company will end up with no guidelines for plans/actions to reach out to the target audience. What does extensive market research reveal?
- Competitor’s product & services
- Marketing strategies
- Target audiences
Processing of Projects
One of the crucial responsibilities of a back-office executive is the management of projects. Though the main project is handled by the front office, operations like ordering, tracking, and delivery of any goods related to that project are the sole responsibility of a back-office executive and staff.
Finance & Accounting
Accounting and finance play a vital role in the management of any business. To control the business, one has to control the money. And to do so, you must have proper accounting for the company’s income and expenses. Receipts, bills, invoices, checks, initiating financial reports, and statements are all the responsibility of the back-office executive. Why it's important? It helps;
Final thought
Overall, the responsibility of the back-office executive is a vital component and as important as working on the front-line of any organization. And to boost the back-office efficiency we have outlined a few best tips;
- Introduce short interval management (SIM)
- Build a continuous improvement culture
- Invest in a software
- Eliminate non-value adding activities
- Try changing things up
