Back Office

What is Back Office?

The back office is part of a company that is made up of support personnel and administration who don’t get to face clients.

The functions of back-office comprises IT services, Accounting, compliance to regulations, record maintenance, clearances, settlements, and more.

Back Office Duties and Responsibilities

Basically, back-office is an essential part of a company that has the liability of providing business functions relevant to the operations. Sometimes, this is also called as a job that does not generate revenue directly. Although they remain invisible, however, the role of personnel and administrators working in the back office is significant to Handle functioning efficiently. In the current scenario, a majority of back-office positions are situated away from the headquarters of the company. Several of them are also located in such cities where commercial leases are not costly, labour is inexpensive, and enough employees are available. Alternatively, several companies also outsource back office to decrease additional costs even more.

On top of that, technology has made it easier for people to work from home and provide the same results as they would have by sitting in an office cubicle. Furthermore, some company may even provide incentives to employees to work from home. For instance, suppose there is a financial service company that needs high-level accounting. Now, if they hire a couple of certified public Accountant, the company may offer an additional Rs. 10,000 to work from home. If this costs the company Rs. 20,000 for an employee’s space in the office, they can easily save the same amount by allowing employees to work from home.

Interaction of Back Office

Although employees in the back office don’t get to interact much with customers; however, they get to work closely with the front office staff. For instance, if there is a salesperson selling Manufacturing equipment, he may get help from the back office to get appropriate information on the pricing structure and inventory availability. Majorly, a lot of business schools present back office as a place where newbies can gain experience from. Although the workload varies from Industry to industry; however, the responsibilities of back-office employees are pretty much similar in every company.