When thinking about the term “back office,” sometimes it takes on the actual literal meaning. Often, it comes from the old standard of establishing out the office for space so that marketing, sales, and other customer and business relation and operations would be organized.
Usually, the work and responsibilities in the back-office involve Networking, IT, Payroll, Bookkeeping, and Human Resources. But of course, it all varies depending on the business niche and size, because some of these responsibilities have their own role and staffed department, and many of these roles are delegated to a useful of multitasking administrative employees.
An excellent and emerging trend of many growing companies nowadays is to outsource back office solutions to help them focus on greater attention on planning and developing the central core of the business.
It’s definitely worth your effort and time to look for the most excellent approach to a more effective and optimized workflow for your business’ back-office support.
So how to get and established a smart back-office solution that helps your business towards success and growth?
Identifying your critical areas of back-office solution management and the appropriate process to manage and monitor for optimal and successful business growth.
Accounting and Bookkeeping
Money is the source that is needed to keep your company going, and good bookkeeping practices are a requirement to keep your business on the right track. Your bookkeeping involves managing and recording all of your company-related financial transactions. These kinds of back office solutions that require bookkeeping process may include the following:
- Accounts Payable
- Bank Deposits
- Sales and Operating Taxes
- Cash Receipts
- Banking and Credit Card Reconciliations
- Billing and Invoicing or Accounts Receivable
Studying how, when, and whom the processes are utilized can support your streamline back-office by figuring more effective workflows and timely performance of responsibilities. This kind of review recommends estimating any overlooked, weak, and unmanaged duties, as well as the separation of responsibilities for efficiency and fraud prevention.
Accounting process system may include the following:
- Managing accounts
- Mont and year-end close
- Invoice reconciliation
- Making sure that financial statements are timely, accurate, and meaningful.
Accounting is your business front line as far as numbers and data are involved. It is a management of the business’ accounts to make sure that it has a proper reconciliation.
Also, accounting is the execution of accounting principles of the business, be it the revenue recognition, matching principle, and generally accepted accounting principles of accounting.
In most small businesses, the CEO may be the one who operates as the controller, bookkeeper or both. It is essential for the organizational growth the controllership and bookkeeping are both exclusive processes. The controller’s main duty is to review all the activity in the bookkeeping system while maintaining to get away from business fraud.
Having an extra hand on the books supports to figure out cash flow problems and lessen the risk of internal and external fraudulent activities or employee error. There are lots of business work with limited resources, though the duty of the controller should remain different from the bookkeeper role. However, most of the time, they often merged into one role.
No employee should be doing these three primary accounting duties, record keeping, functions of authorization, and custody of assets. The most exceptional practice to avoid fraud in your company is to follow the standard accounting methodologies and processes of separation of duties.