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 – Daily activities

• Last week we discussed the daily activities around.
• sales, banking, purchases, petty cash, and stock.

Tip 02 – Debtors

• If you sell any products or offer any services on terms, you will have debtors.
• Sales are great when the money is in the bank.
• The longer your debtor takes to pay you the higher the risk of bad debt.
• Do you have a debtors collection procedure?

Tip 03 – Creditors

• Any purchases that are not paid for immediately, form part of your creditors.
• You can split your creditors into sundry creditors and creditors.
• All creditors must be paid against a creditors recon, showing that you and your supplier agree on the amount due, and if not showing a list of reconciling items.

Tip 04 – Bank Recons

• Reconciles what is moving in and out of your bank accounts.
• What is still due and/or uncleared?
• Lets you know what your actual bank balance should be.
• Do you have a bank recon template?

Tip 05 – HR activities

• Whether your staff uses a manual system, a clocking system, or a biometric system.
• It is especially helpful to update staff activities at least weekly.
• Things like sick leave, and annual leave. unpaid, late coming overtime, etc can be time-consuming and place extra pressure on month end.
• Updating the information weekly helps a great deal.
• Do you have an efficient payroll system, what about employee handbooks?

Tip 06 – To Follow

• Debtor’s month-end statements and collection procedures.
• Creditors’ month-end processes.
• From Bank recons to cash flows.
• Trial balance.
• Payroll and recons.

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