The Back Office - Accounting

For many people, the back office is a mystery. Data goes in, and informative financial reports come out. But mysterious as it seems, the back office is vital to any business.

What happens in the back office? The back office is home to clerks, bookkeepers, and accountants. Here is a list of some of the most important accounting tasks: Payroll Accountants calculate salaries and total wages for every employee. These are called gross earnings or gross wages. The accountants also prepare pay stubs for each pay period showing the employees their year-to-date earnings and taxes. Cash collections Accountants record cash that the company receives and manage the company's checking accounts. Cash disbursements Payroll checks are not the only checks that accountants write. They also handle all other cash disbursement. Procurement Accountants keep track of all company's inventory. They record purchase orders and make them have been filled. back office = administrative and support teams that are responsible for operations but don't directly interact with customers disbursement = a large payment of money, for example, from a bank, organization, or government, or the act of making such a payment procurement = the process by which an organization buys the products or services it needs from other organizations