A company's back office employees do not directly contact a client. They are also not the face of the company. But the back office handles crucial tasks and functions to make front office management easier. Back office staff usually handle administrative and operative functions.
Why is Back Office important?
The back office handles several key tasks like database administration, HR management, finance, IT, and technical support. Having an efficient back office helps in the smooth functioning of your business processes. Additionally:
They handle multiple tasks
Your back office handles most of your financial tasks. They manage accounts, keep track of revenue and expenses, and ensure that all functions go smoothly.
They ensure front office productivity
While the front office focuses on building the company's image, the back office handles all tedious tasks. They make sure that front office employees have all the information they need. This ensures the front office is productive and focused on building the brand reputation.
They manage company data
Every day the company generates a lot of data in the form of client information and transactions. Your back office collects, organizes, and stores the data on a secure platform like the cloud. More than 90% of companies worldwide store data on the cloud. They also help make the data ready for analysis to gain valuable insights from the information.
Get more from back office functions through outsourcing
Having excellent back office management is crucial for a company's growth. The company relies on the back office for a majority of its functions. But, 60% of customer dissatisfaction is traced back to the company's back office teams. If you find it difficult to manage another in-house team, you can outsource your back office operations. Outsourcing has several benefits over managing an internal team.
They manage company data
Even if you have to pay for outsourcing services, it can reduce the overall costs of your back office operations. Companies that provide back office services have pre-trained staff that have hands-on experience. You can cut down on training and induction costs through outsourcing. They also have a well set out approach to all back office functions. This increases productivity and cost-effectiveness. According to EY estimates, you can save from 20-60% by automating your back office operations.
Moreover, most outsourcing services operate from cities with lower living costs. This can reduce your back office expenses while providing you better services than an in-house team.
Since the primary goal of the back office is cost reduction, outsourcing to an expert team is a smart choice.
Better resource management
Most businesses do not have a consistent workload for their back office team. For example, during tax season, the back office team may have to work overtime. This company will have to increase its employee compensation to account for the extra hours. While in other months, the back office team may not have much work at all. Regardless of the workload, the company will have to keep paying them a certain salary.
With outsourcing, you can utilize the services as per your requirements. Most outsourcing companies require payment on a project-to-project basis. You can hire them during a busy season and keep away from back office expenses when the business is slow.
Easy scalability
Depending on your clientele, your company may require additional back office staff. Or, you may also need to lay off a few employees if there is no business. With an in-house team, it is difficult to do so every time your clientele changes. Back office outsourcing provides easy scalability options.
These services have a team of experts working on different projects. You can always increase or decrease the amount of work assigned to them and pay accordingly. By outsourcing, you can improve your clientele without worrying about finance and data management operations.
Better expertise, services and technology
Back office functions require more than just trained staff. If you handle large amounts of data every day, you will need specific tools and software to make your back office functions more efficient. For different operations, you will require additional software. These tools can be expensive and add unnecessary expenses to your company's budget.
You can also choose to host your data on the cloud to make it accessible to you at any time. This keeps you in the loop with your back office operations while also leveraging the benefits of outsourcing. Data storage on the cloud also ensures that your data is secure.
Outsourcing services have a variety of software available with them. Companies like KriyaGo can also integrate features from multiple software to fit your requirements. This can save costs of buying and training staff for different digital tools.
Investment more time in other business functions
Outsourcing services take care of everything from employee training to payrolls. This reduces the burden of managing an in-house team. You can focus on other business operations such as marketing and data analysis. Tasks that increase the company's revenue, such as market expansion and product management, require more attention.
Outsourcing frees up your time to concentrate on your company's growth.
Better business opportunities
With easily scalable back office operations, your company can focus on increasing your client base. Most back office services use software capable of bulk work. Whether it is payroll management or bank reconciliation, back office services can handle everything. As you increase your market reach, you can scale your back office operations accordingly.
Automate your back office operations through KriyaGo
At KriyaGo, we believe the back office is the backbone of your company. Our back office services offer you better software and expert resources at lower costs. By outsourcing to us, you can drive core functions, ensure data security and get better control over the operations.
Additionally, we offer other software solutions for property management companies. If you are looking to integrate the best features from various software, KriyaGo is the right place for you. We work with platforms like Yardi, Procore, and SAP Concur to build customized software for our clients.
If you want to get the most out of back office outsourcing, book your consultation with KriyaGo!
