The term ‘back-office’ is extremely misleading. Businesses are inclined to believe that back-office tasks are secondary to other activities when in reality, they form a critical part of business processes. Most company managers are reluctant to focus on their back-office necessities considering the lack of visible value it adds to the business.
Since most of such tasks revolve around account bookkeeping and payroll, they tend to be heavily time-consuming and also requires extreme attention to detail. But when an emergency arrives, without clear visibility into business cash flow, things can feel excessively out of control.
In today’s post, let us discuss the importance of back-office tasks and how outsourcing back office solutions can help scale your business.
Defining the Concept of Back-Office:
Diving deep inside the origin of the term, it has to do with the building layout of early companies. When businesses are set up for the first time, their offices were built in certain sections. The front side of the buildings was occupied by employees and departments who were primarily focused on customer-centric activities like sales and customer support.
The departments towards the backside provided administrative and operational support to the business and their work did not concern direct customers. Most of the tasks generally revolved around bookkeeping and accounting services, maintaining employee payroll and handling taxes.
To sum up, front offices drive revenue to the business whereas back offices are the centers of expenditure.
The Importance of Back-Office:
Poorly managed back-office can result in a huge financial mess. When businesses prioritize these jobs and stay on top of their accounts and financial records, they have a great opportunity to be proactive. With actionable insights already present at their disposal, they can better analyze incoming and outgoing cash flow to get a hang of the health of their business.
Ways Outsourcing Back Office Solutions Can Be a Great Help to your Business:
- Outsourced Back Office Solutions Help Save Costs:
Companies work towards streamlining and betterment of their front office tasks to maximize their revenue. When it comes to spending that revenue, back-offices should efficiently optimize their business processes to drive profits and augment their financial capabilities. Partnering with back office associates helps businesses in cost reduction since the best outsourcing firms have optimized pricing packages based on competitive market trends.
2. Availability of Flexible Resource Management:
Back-office tasks like account bookkeeping do not need daily attention. If you hire an in-house team to handle your back-office jobs, you lack the flexibility to manage your employees. It does not make sense to lay off people when business is slow for the week or avoid paying over-time costs when there is too much work. Outsourcing back office solutions are a great help in this regard because you only have to pay for the service you receive and not bear costs of unproductiveness or over-times.
3. Increased Access to Advanced Services and Technology:
Another way how businesses can profit from hiring back office associates is by saving money on capital investments.
Back office outsourcing firms are equipped with advanced software, technologies and expert human capital to drive their regular business. Moreover, old techniques for handling such jobs prove to be less efficient and time-consuming. The costs are high and the margin for human error is also very significant.
By outsourcing back office solutions, you get to delegate your work on experts who correspond daily with businesses like yours. This means that they already have the best tools and procedures at their disposal to assist you in various degrees of back-office tasks like providing bookkeeping and accounting services, solutions pertaining to human resources, taxes, and other related jobs.
4. Visible Insights into your Financial Situation:
Outsourced back office associates often provide businesses with monthly and quarterly reports defining the financial health of their business. When businesses have to make investment decisions or come up with audit reports and account data, these actionable insights help them make informed decisions regarding the future of their business.
5. Focus on Core Business Activities:
When businesses manage their back-office tasks in-house, they need to hire an entire department of employees along with administrative overheads. Employees at leadership posts have to be deployed in charge of manual tasks like managing finances and human resources which is fundamentally a poor utilization of their talent. Hiring expert back office associates help companies solve this issue and station managers at front-office posts where their ideas and experience are a great help in generating revenue.
Back Office Services in Singapore
When you are looking for back office solutions for your business, you need a reliable, trustworthy partner firm that can responsibly handle all your accounts and data. PikoHANA provides a single-window solution to all your back office woes with the speedy delivery of services that ensures dependable and accurate results.
The various back-office services provided by PikoHANA in Singapore are:
- Takes care of the lack of actionable metrics and insights
- Increase in financial visibility
- Solves challenges faced in staffing and human resource management
- Tax filings and compliance to regulations
- Organize financial records and bookkeeping
- Accounting and audit services
- Manages employee and contractor payroll
- Customer invoicing and collections management
PikoHANA understands the hefty job of running a business. Experts at PikoHANA are brilliantly trained and they hold rich experience in handling all your back-office essentials so that leaders can get back to doing what they are best at.
To know more about how PikoHANA handles its daily business, read our article about how it helped a tech company in Singapore manage business expenses: How A Tech Company Cut 50% Of Its Back Office Costs In 2 Months
In the fundamental market-driven landscape, prioritizing back-office tasks can give companies a significant degree of competitive advantage. Outsourcing these tasks and hiring back office associates can prove to be a huge help in managing the all-encompassing workload of business managers. Save a significant amount of money and time and divert it towards your front-office to grow and scale your business with ease.