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The Importance of Back Office Operations in the Success and Growth of a Business

Back office is an integral part of the overall operation of every company or business. The speed and efficiency of the people assigned to handle and manage back office tasks contribute tremendously to the growth and expansion of any business in operation. It would be very impossible for companies to for years in the business arena without an efficient back office support. But what really is back office? Why do companies need such to survive?

Back office departments are where most operations of the company take place. Front office contains the staff that directly deals with clients and customers and the back office deals mostly with manufacturing, researching, developing of products, administration tasks such as human resources, payroll and information technology departments that maintain technical equipment and internet presence. Back office are not given a lot of consideration and most employees who perform these basic tasks only get minimum salaries but they are actually the major contributors in the growth and stability of any business enterprise.

Back office tasks are often supported by a back office system the helps keep the records of companies in an orderly fashion such sales, purchases, customer and client transactions, and inventory updating. It also includes production of creation of invoices, receipts and reports which is made possible through technical infrastructure such as the use of computers and servers.

Take for example banking. The banks relay heavily on information technology processing systems that take care of position keeping, deposit clearances, financial settlements and other banking transactions that concerns automated teller machines or ATMs and other loan and financial transactions. When it comes to investment companies, the back office tasks often handle administrative tasks that support the trading of:

  • Securities
  • record keeping
  • trade confirmation
  • settlement of trades
  • Compliance with investment regulations.

Back office is also an essential part of any sales business that include fulfilling of customers orders from product deliveries to after sales customer service support that are often called call centers. The present state of the economy has made more companies outsourcing customer support department from offshore outsourcing companies that offer a more affordable cost for customer support manpower and operations.

Back office may be located within the premises of the company’s headquarters or may be located in other states branches or in foreign shores where labor is cheap. Back office operations can be further enhanced through the use of automated tools such as back office software that are sold in multitude of forms and features. It is then a smart move for a company to identify its needs as far his back office operations are concerned. However a company manages its operations, back office work will always be a major deciding force for the success or failure of the business.

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