Farwah Jafri | September 9 2022
Back office services don’t directly impact revenue and often get tossed to the back burner. Some ignore them to focus more on so-called essentials – sales. However, it is almost impossible to make a business function rightly without back office services. No matter how small or large the venture, you need some folks behind the curtain to ensure you stay hinged on the success track.
Back office services vary from organization to organization. The term refers to services relating to administration, management, and finances. Some are relatively easy, while others are complex. Regardless, all are time-consuming. Left ignored, these little chores may take up loads of time and distract your focus.
Here are a few back office services relating to accounting and finances:
Bookkeeping is the heart and soul of all business finances. Tracking a record of all cash inflows and outflows is super important. Every buck earned and spent must go into the book. These transactions should be recorded timely and accurately to keep your finances upright. The best way to do so is by delegating accounting and bookkeeping work to virtual experts. Professionals who work with you as an extension of your team to fix your finances.
Whether you run a small business or a global corporation, you must file and pay taxes timely. Like bookkeeping, tax preparation is time-consuming plus a lot more complicated. Thus, it is better to delegate tax services to experts who know all about credits, deductions, and rebates.
Account payables are short-term debts an organization owes the vendors for the product or services. Paying off dues on time is essential to keep your company’s repo intact and stay in the good books with vendors and service providers. Business owners cannot keep track of all payables on their own. Luckily, they can hire pros to do so who work behind the curtain to ensure your business debt doesn’t become a burden.
Typically, account receivables count as assets on the balance sheet. It is the sum of money you are owed and will likely get later from your clients, consumers, or associates. All sale invoices with a due date fall into the AR bucket. The fact receivables count as an asset, even before the sum is received, complicates cash flow management.
Without a proper record, assessing the current financial position of your business will get tricky. In contrast, with a virtual expert on the team, you can rest assured account receivables don’t make your balance sheet a mess.
Check Out: What is General Ledger in Bookkeeping?
Chief Financial Officer or CFO heads the business finances and acts as a strategic partner to the business owner. Their job is not to ensure the books remain error-free but to maintain the entire financial story of a business. However, hiring a full-time CFO is difficult, especially for small and medium-sized businesses with little funds.
Virtual CFO services provide an alternative to in-house CFO. Work with a fractional CFO who imparts his knowledge to guide your business forward and help you stay on top of your finances.
Outsourcing back office service is the best way forward for businesses short on cash and in dire need of financial guidance. Here are some benefits of outsourced back office services:
Outsourcing accounting services takes a burden off your shoulder and helps you focus on what matters the most. It applies not only to the top but also frees up time for the employees and results in accelerated productivity. There is no better way to boost productivity than delegating time-consuming and repetitive work to experts so the in-house team can focus more on perfecting the front end.
Outsourced back office service is quickly becoming a trend because it costs less and gets equal, if not more, work done. The reason is simple. There are no operational, payroll, or benefit costs linked to it. Hiring an in-house team requires paying for more than just the service. You have to accommodate, facilitate, and maintain. All of it takes cost.
Risk Management is a top concern of every business. Risks often work against you and derail your business from the winning track. Thus, it is a must to hedge the risk linked with financial activities. Outsourced accounting services provide you with better guarantees, data security, and peace of mind. In turn, it helps you minimize risks and maximize growth.
Back Office Services are essential to success, regardless of the company size. Whether you have a small business or a large multinational company outsourcing your back office operations could be a game changer.
Farwah is the Product Owner of Monily. She has an MBA from Alliance Manchester Business School, UK. She is passionate about helping businesses overcome challenges that hamper their growth, which is why she is working at Monily to facilitate entrepreneurs to efficiently manage business finances and stay focused on growth.