How does a back office work for an accounting firm?
A back office does the bookkeeping, reconciliations and admin behind your client work, while your firm keeps the advice, the review and the tax filing. Here is how it works.
By Virtually On It
3 minute read
A back office for an accounting firm is an outside team that does the routine work behind your client service: bookkeeping, bank reconciliations, data entry, document collection and admin. Your firm keeps the client relationship, reviews the work, gives the advice and files the tax returns. Your clients deal only with you.
What work does a back office take on?
A back office takes on the work that must be done accurately but does not need a qualified accountant to do it. That usually means:
- Bookkeeping. Coding transactions and keeping each client's books current.
- Reconciliations. Matching bank and card statements every month and listing any queries.
- Document collection. Reminding clients for missing statements, receipts and forms, and filing them when they arrive.
- Client onboarding. Sending engagement letters, collecting details and setting new clients up in your systems.
- Admin. Managing the shared inbox, booking meetings and keeping records tidy.
What stays with the accounting firm?
Everything that needs your qualification, your judgement or your name stays with the firm. That includes advice to clients, review and sign off, year end accounts, tax returns and filing, and the client relationship itself.
The back office prepares. The firm reviews, decides and files.
| Task | Your firm | Back office |
|---|---|---|
| Client relationship and advice | Yes | No |
| Tax returns and filing | Yes | No |
| Review and sign off | Yes | No |
| Bookkeeping and data entry | Reviews | Does the work |
| Reconciliations | Reviews | Does the work |
| Collecting documents | Sees the status | Does the work |
Why do accounting firms use a back office?
Firms use a back office to free qualified staff for the work only they can do. Bookkeeping and document chasing take a lot of time. When that time moves to a back office, accountants can spend more of their week on review, advice and clients.
It also helps with busy season. Extra hours can be added for the weeks before a deadline without hiring and training someone for a short period.
Will my clients know?
That is your decision. Most firms have the work done under the firm's name, so clients continue to deal only with the firm. If you prefer to tell clients, that works too. What matters is that the arrangement matches your engagement terms and your professional rules.
How is client data kept safe?
The safest arrangement is one where client data never leaves your systems. In practice:
- The back office works inside your firm's own accounting software, with logins you provide.
- Access is limited to the client files in the agreement.
- What may be accessed, and how, is agreed in writing before any work starts.
- You can remove access at any time.
Check your own professional body's rules on outsourcing and confidentiality before you begin, and make sure your engagement letters allow it.
How do I start with a back office?
Start small and check the quality before you hand over more. A sensible way to begin is:
- A call about your workload. Which clients, which software and where the hours go.
- A written plan. The tasks, the deadlines, the review points and the price.
- A trial with a few client files. Enough to judge accuracy and communication.
- A monthly rhythm. Agreed deadlines, a status for every client and one summary each month.
What should I look for in a back office?
Look for clear answers to these questions:
- Will they work in the software we already use?
- Who is my point of contact, and is it the same person every time?
- How are queries raised, so nothing is guessed?
- What happens when a client sends documents late?
- How do we add hours for busy season, and how do we reduce them afterwards?
A back office that answers these plainly, in writing, is one you can review and rely on.
What is the next step?
See how the arrangement works on the accounting firms page, or read about the bookkeeping service. When you are ready, book a free call to talk through your workload.