Back office: How Does Back Office Work? Learn About the Latest Technologies

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Published on: August 30, 2022

The back office is the set of administrative departments and functions behind the company's operations, such as legal, financial, HR, accounting, and other areas. Behind any business is a Back office, which handles customer support and tries to solve customers' problems. Customers might not know that behind services and products is a back office handling these things. Today we are going to tell you what the back-office is and how it works.

What is Back Office?

The Back office is a set of activities responsible for dealing with financial and administrative issues of a company that customers don't know. Back office support is a term for office solutions that aren't customer-facing. Consequently, the office is actually to run the company's operation, production, and sales smoothly. All these things directly affect the customer's satisfaction and the company's performance. It's opposite the front office is mainly connected to the company, and they are the ones who take the customer's problem to higher authorities. Still, the back office plays an essential role in handling customers; they acknowledge the customer's feedback and try to provide them with a satisfactory response. fundamentally, Back office support is the one who acts directly to get products to reach customers.

The back office includes activities

• Finance, accounting, and controllership
• Administrative
• Human Resources
• IT
• Marketing
• Legal

What is Financial Back Office?

The back financial office works and looks after the company's accounts, profits, losses, and taxation issues. The back office plays a vital role in the company's growth, and they are made to ensure the closings of companies' accounts.

Back Office vs Shared Service Center

Mostly everyone thinks that Back Office and SSC (Shared Service Center) are the same things, and these both work same, But SSC is a separate thing because the main motive of SSC is to provide business support services. SSC looks after and serves all company departments, and they can also outsource the work to other parties.

How Does Back Office Work?

The back office looks after all the company's departments' value chain. Essentially, the back office works for the company's sales, products, marketing, recruitment of specialized and experienced personnel, IT and Service desk, and many other functions. The back office is minimal to looking after and supporting all these departments. For better performance and efficient response, the back office should be automated and punctual for all the responsibility because a single minor mistake can turn into a massive loss for the company.

Read Also: 4 Important Reasons of Video Call in Contact Centers

Why is Back Office so Important?

The back office plays a significant and visible role in every business. Establishing a standardized routine with more precise and more controlled processes benefits your business as a whole. Suppose any customer buys your product online, but unfortunately, the product is out of stock, and the customer can't order it. In that case, this thing will dissatisfy the customer, which can ruin the company's reputation. It can also reduce the customer traffic to your business and other consequences.

The Back office must prevent operational errors and identify and solve gaps in your business's day-to-day. Following are the steps which every back office should follow to increase the company's growth.

Process optimization: Regularity makes it very easy to search possible barriers in processes and come up with perfect and related solutions.

Noise reduction in communication: As the back office is link with all company departments, it can identify communication issues so that the back office can avoid revision. It will also help the company resolve every issue as soon as possible.

Data analysis and Business Intelligence: With management systems like BPMS (Business Process Management System), you can collect data from all processes and perform proper analyses. The back office can use this to generate significant business performance observations and establish Key Performance Indicators (KPIs) and performance goals for teams and processes.

Should You Do This?

Back Office Automation

A company can make operations and work much more accessible with automated Back Office Support. There is software which is known as (BPMS) Business Process Management Software. Therefore, the primary use of this software is that it can all the processes of the whole chain in a single place. The back office will have access to all information regarding the operation of your company in the cloud, such as which group of employees is responsible for which task, the progress of an activity, how long the task take, what work is essential to complete, what needs to complete to improve customer support and customer satisfaction, and much more. This system and software are purely beneficial for every kind of company, and after this software, they can see a clear and visible change in performance.

Failure Reduction

Most of all, having an automated back office is very important now a day for any kind of company or chain because a single error can become a huge loss. Moreover, an automated back office is made to identify the error before it occurs so the team can resolve it and the processes will not stop. This function of an automated back office is one of the best because it helps the company to run smoothly without any errors.

System Integration

Instead of having several systems for different tasks, the back office with BPMS can track all the processes in one place, a digital platform that can integrate CRM (Customer Relation Management), ECM, Service desk, and analytics. In this system, you came quickly gather all information in one place.

Less Administrative Work

The duties of the back office require a lot of documents, invoices, contracts, reports, etc. These all things are foremost essential for better growth of the business. Managing all these documents and paperwork is quite tricky for anyone. There is a software as the ECM system (Enterprise Content Management) to manage all these documents. Most importantly, this system is integrate with BPMS and lets you manage all the essential documents and paper works in the system. It also reduces the hassle of all paper works and the time and hassle of providing tax information and failures while sending documents.

Real-Time Data

First and foremost, automation also allows you to use the activity-generated data in real-time. Given the dynamic market, this is extremely valuable for a competitive advantage. When a customer returns the product, this minor thing disturbs the whole chain because it disturbs the inventory cycle and finance. It can also lead to online lawsuits and other massive consequences. With access to real-time data, you can contact the after-sales department so that they can try a new sale, or they can get the reason for the return and try to solve the issue if it is possible.

Conclusion

The back office plays an essential and massive role in a company's success and growth because they manage the customers, sales, marketing, and finance; all 4 things are significant and sensitive. Today we discuss, how to improve your back office by installing some systems or software, and after doing it, you will be amazed by seeing the results in the company's progress. We recommend that every company make sure that their back office is automated and capable of handling everything perfectly.

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Abdullah Haroon

Abdullah is COO of Xtreme Technologies. He is Interested about Business, and Technology.