Back Office Troubles Pt 3

Back office functions are important because they are essentially the backbone of a company.

Instead of talking about the technical aspects of your back office functions, I have some tips on the nuts and bolts, to have an efficient back office which in turn can support your business.

Tip 01 – Weekly activities

• Last week we discussed the weekly activities around.
• Debtors, creditors, bank recons, and HR activities.

Tip 02 – Debtors Month End

• Keep month-end dates firm, and don’t move sales from month A into month B, etc.
• Print an age analysis and compare it with the debtor balance on your TB
• Send all debtor’s statements timeously on a fixed date (by email).
• Start collection calls from the 7th of the new month.
• Debtors older than 30 days should have a formal collection strategy.

Tip 03 – Creditors month end

• Creditor month-end also requires a firm cut-off date.
• Print your creditor’s age analysis and compare to your TB.
• Create a creditors recon for each creditor, comparing their statement to your book balances.
• If there are variances request proof through the creditors recon.
• Prepare for payment.

Tip 04 – Cash Flow

• If you are doing your bank recon regularly, the cash flow becomes easy
• Cash flow opens with the bank recon balance, showing outstanding cash ins and outs.
• The next step is to record expected monies in and monies out from cash sales, debtor’s receipts, and all payments
• This information is recorded by date.
• you can update a cash flow daily or weekly as required with the theoretical closing cash balance.
• Making the necessary adjustments with actual activity.

Tip 05 – HR activities

• Month-end activities around payroll can be busy if not managed weekly.
• All staff movements must be recorded. sick leave, annual leave, etc as well as any unpaid or overtime where applicable.
• The payroll system must reconcile all payouts and trial balances.
• Staff payslips are to be printed or available on cloud systems.
• Payment processing with the bank for timeous payment into staff accounts.
• All statutory returns deducted from staff salaries are to be paid by due dates.

Get in Touch

• Contact details
• Email: felicia@keymetrics.co.za
• Cell: +27 81 289 8318
• Website: www.keymetrics.co.za
• Linkedin page
• https://www.linkedin.com/in/felicia-heyburgh