Back-office functions may not be directly coordinated with clients and customers, but they are nonetheless critical to the business operations. They act as a support system to help other departments focus on their core capabilities.
Just because they are called “back office” does not mean they are taking the back seat in the business.
This article will delve into the most common back-office functions that keep companies running and highlight their importance to the success of an organization.
But first, what is back-office?
Most companies design their offices by putting employees who interact the most with clients at the front portion and delegating the support staff to the back of the office —hence the term “back office.”
Unlike the client-facing nature of front-office roles like sales and customer care, back-office functions are primarily comprised of administrative and support services. They perform various technical and non-technical tasks to keep the company running without interruptions.
They may be away from the frontline action, but these functions are essential to laying a strong foundation for the company’s success and growth.
There are two categories under the back-office operations:
- Administrative staff – keeps the company functioning efficiently; and
- Support staff – attends to the requests and issues of the clients.
It is typical for the back office to generate less revenue than the front office. After all, they do not bring in new customers to the company by promoting the products and services.
However, they are equally important as their presence ensures that all internal issues and problems are fixed and would not affect other departments within the organization.
What are the most common back-office functions in a company?
There are many job positions and tasks under the two categories of back-office functions. Here are the most common ones that you can find in every business:
Human resources
Aside from screening and hiring employees for the company, the human resources (HR) department handles all the records in an organization. They take care of each employee’s compensation, leave management, retention, and performance management every quarter or year.
They are also in charge of creating better procedures in the office environment to keep all workers happy and ensure a smooth operation every day.
Finance and accounting
The finance and accounting (F&A) team is in charge of the company’s financial records. They monitor all the money coming in and out of business and record it in sheets.
Because they are handling the business’s operating expenses, F&A analysts must be skilled in mathematics and have excellent analytical skills.
IT
It is almost impossible to think of a thriving business with no IT department nowadays, especially in this digital era. IT professionals help provide the tools and data employees need to do their jobs.
They are always on stand-by, tending to any tech problems that employees may run into while completing their tasks.
Data entry
Data entry services range from a simple encoding job to researching specific information needed by the company, interpreting them, and inputting them into the system.
Having a data entry team helps the company monitor its performance, target audience, and operational expenses in any given period.
That is why being detail-oriented helps every data entry employee be successful in their tasks.
Why are back-office functions important in day-to-day operations?
Often, the things that front-office employees present to customers result from the work done by the back-office staff. Without them, the company would be rigged with errors and interruptions, preventing smooth operations.
Here are the essential benefits of back-office functions to a company.
Provide a strong company backbone
Just like a human paralyzed without its spinal cord in tiptop shape, a company cannot do much without its back-office functions. They handle all operational tasks and essential data. They are also trusted with the internal and external finances.
Additionally, efficient back-office management allows the rest of the business to perform its core processes, maintaining a healthy workflow without interruptions.
Boost productivity
Most back-office functions are monotonous, yet they take a lot of time to be completed. For example, organizing payroll could take days, especially if the company has a lot of employees.
Back-office employees are the ones who take this burden. With their help, the front-office staff can devote their time to attracting new customers and converting clients.
Compile data and information
Managing data is not easy, regardless of the company’s size. Back-office employees are trained in compiling important data and information that could be accessible by everyone in the organization.
With an organized and accurate database, other departments can have all the data they need with just a few clicks.
Present growth opportunities
Because they file all information that goes in and out of the organization, back-office teams have a good grasp of its operations and the strategy needed to ensure growth.
For example, with an excellent HR team, the company will recruit the top talents. Their presence could then strengthen the company’s services which will, in turn, lead the business into growth and development.
