Back Office

 What Is Back Office?

The back office is the portion of a company made up of administration and

support personnel who are not client-facing. Back-office functions include
settlements, clearances, record maintenance, regulatory compliance, accounting,
and IT services. For example, a financial services firm is segmented into three
parts: the front office (e.g., sales, marketing, and customer support), the middle
office (risk management), and the back office (administrative and support
services).

KEY TAKEAWAYS
 The back office is the portion of a company made up of administration and
support personnel, who are not client-facing.
 Back-office functions include settlements, clearances, record maintenance,
regulatory compliance, accounting, and IT services.
 The term "back office" originated when early companies designed their
offices so that the front portion contained the associates who interact with
customers, and the back portion of the office contained associates who
have no interaction with customers, such as accounting clerks.

How the Back Office Works

The back office can be thought of as the part of a company responsible for
providing all business functions related to its operations. Despite their seemingly
invisible presence, back-office personnel provide essential functions to the
business. The back office is an essential part of any firm and associated job titles
are often classified under "Operations." Their roles enable and equip front-office
personnel to perform their client-facing duties. The back office is sometimes used
to describe all jobs that do not directly generate revenue.

The term "back office" originated when early companies designed their offices so
that the front portion contained the associates who interact with customers, and
the back portion of the office contained associates who have no interaction with
customers, such as accounting clerks.
Example of Back-Office
Today, most back-office positions are located away from the company
headquarters. Many are located in cities where commercial leases are
inexpensive, labor costs are low, and an adequate labor pool is available. 

Alternatively, many companies have chosen to outsource and/or offshore back-

office roles to further reduce costs. Technology has afforded many companies
the opportunity to allow remote-work arrangements, in which associates work
from home. Benefits include rent savings and increased productivity. Additionally,
remotely employing back-office staff allows companies to access talent in various
areas and attract a diverse pool of applicants.

Some firms offer incentives to employees and applicants who accept remote
positions. For example, a financial services firm that requires high-level
accounting could offer a $500-per-month housing subsidy to
experienced CPAs to work from home. If it costs $1,000 per month to secure
office space per individual, a housing subsidy of $500 per month would result in
an overall savings of $6,000 per year. The cost savings can be significant when
employing many remote professionals.

Though this saves money for the company, the employee may also have to
accept a lower salary if they are moving from a Front Office position in a central
location to a more remote location or even a work-at-home arrangement.

Special Considerations
Although back-office staff members do not interact with customers, they tend to
actively interact with front-office staff. For example, a manufacturing equipment
salesperson may enlist the help of back-office staff to provide accurate
information on inventory and pricing structures. Real estate marketing
professionals frequently interact with sales agents to create attractive and
relevant marketing materials, and IT professionals regularly interact with all
divisions within the company to ensure proper functioning systems.

Many business school students from non-target colleges and universities see
Back Office work as a way to gain experience within a firm and potentially
network up into the Front Office roles. Though it varies from one firm to another,
the work in the Back Office roles is significantly different from the Front Office
and, with the exception of corporate credit risk roles, may not provide a Front
Office hopeful with the needed experience to make such a transition. ( ADAM
BARONE )
A Solution for Growing Your Business
without Adding Staff
Partner with The Innovative CPA Group for your Back Office Accounting Services, and
grow your portfolio of business service offerings without adding staff.

Our Philosophy
The Innovative CPA Group is a team of forward-thinking accounting, tax, and business
experts servicing businesses and high net-worth individuals in Connecticut and across
the nation. We use cutting-edge technology and a collaborative approach to find the
savings our clients need and the peace of mind they want.

Your Back Office Support Solution

It’s a win-win. When your clients demand more, but you canít add staff, count on The
Innovative CPA Group to provide back office accounting service support. We function
as an extension of your firmís staff. Our experienced team of accounting professionals
will handle your work overflow and deliver results. You keep your clients and attract new
ones with expanded services.
Expanded Services + Increased Revenue

Are you turning away clients or complex high profit jobs because you donít have the
capacity or particular expertise to handle the work? Avoid those dilemmas, and let The
Innovative CPA Group be your solution.

Some of the Business and Individual Services we can assist you with include:

 Audits, Reviews & Compilations

 Audits of 401(k) Plans
 Retirement plan set-up and administration
 Non-profit audits and tax preparation
 Foreign Taxation and FBAR filing
 Commercial Real Estate Consulting for
 owners, developers, investors
 Cost Segregations
 Bank Financing Assistance
 Buying & Selling a Business
 QuickBooksÆ ProAdvisor set-up and training