The distinction between the back office and front office in a business is not a recent topic. The main difference is the direct contact with customers, which typically occurs in sales or customer service departments. The activities that make up the back office vary depending on the industry but often include financial and administrative tasks such as accounting, administration, and tax compliance. Accounting includes financial management, payroll, and inventory management, and should provide meaningful data to improve business operations. Administration includes tasks such as document management and report preparation. Tax compliance is crucial to avoid consequences and must be kept up-to-date with changes in legislation. Let’s agree on several concepts:
Accounting: Financial management organizes the data going into the different accounts (payable, receivable, etc.), payroll, and inventory management. In short, accounting should be able to provide meaningful data on how to best improve the company’s overall business operations.
Administration: This area can range from database management to enterprise content management. Setting up documents, invoices, contracts, and internal and external reports causes a lot of paperwork that needs to be handled with great precision.
Taxes: Not complying with the regional and national tax codes can have severe consequences for your business. This back office service is closely linked to local regulations and needs utmost attention and precision. Furthermore, tax regimes change quite rapidly, and keeping up with new legislation is crucial for a sustainable business expansion.