The Back Office is an essential part of any company, but it's often overlooked. This portion of a business is 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 back office can also be known as the "middle office," "middle office professionals," or "middle office managers."The term "back office" comes from the banking industry, where it refers to individuals who work in the back of a bank, processing transactions, updating accounts, and making sure everything runs smoothly. While the front office of a bank consists of staff that deal with clients and help them conduct their business, the back office is made up of support staff, such as accountants, IT personnel, and operations managers.In accounting, back-office procedures are called "back-office accounting." This type of accounting involves basic accounting functions, such as payroll and accounts payable. Back-office accounting is sometimes done by one person or by a department with many different roles. The department may be broken down into smaller units, each focusing on a specific task. For example, one unit might manage accounts payable while another only deals with payroll.Back-office procedures are overseen by the chief financial officer (CFO). The CFO also oversees.
