Back office operations may not be the most exciting part of a business, but they’re incredibly important if you want to succeed. After all, how can you focus on growing your company and increasing profits if you’re busy trying to keep track of inventory or keep up with invoices? As your business grows, many questions will come up about back office operations and processes.
What is an Order?
An order is a client’s request to buy or sell securities, commodities, or other financial instruments. A broker sends orders to a market maker and a market taker.
Steps Involved in Order Processing
The back office process of order processing must be understood when engaging in e-commerce. Below are some steps involved in order processing:
Step 1: A customer places an order by clicking on your products on a website or by calling your toll-free number displayed in your ad.
Step 2: The system connects back to you and confirms the order, when it will be shipped, payment information, any special notes about shipping or handling, etc. This process helps both you and your customer know what is happening with their order from start to finish.
Step 3: Once your customer submits their order through a website or over the phone, all of that information goes directly into an e-commerce software’s database, which stores everything.
According to experts at Verint, every step in each purchase made on your site adds another data point onto one central platform (your e-commerce software). All steps can then be accessed on one screen at any time during business hours by anyone with access rights (you or employees).
Read: How To Migrate From Shift4Shop To Shopify?
Communication Methods Between Members
The most common means of communication is through email. Companies will also use face-to-face conversations and telephone conversations to run effectively.
The Differences Between Clearing, Settlement, and Custody
The clearing is a process by which securities are bought, sold, and transferred from one book-entry account to another. Clearing involves an intermediary between two parties transferring ownership of securities. The intermediary will examine documentation, verify transfers and ultimately update their records.
Special Considerations for Derivatives Orders
Derivatives orders typically have different lifecycles than typical securities orders. Although you should be familiar with these differences, many nuances and rules can trip up even experienced brokers.
Data Structures in FINS
FINS maintains several data structures used throughout a trading session.
BOP is essentially a fancy term for everything else. It encompasses every aspect of your business that does not fall into either retail, accounting, or operations. These are some of the most commonly used words and phrases in back office operations:
1. Bureau de Change (BDC)
2. Clearing
3. Clearing House
4. Custodian
5. Depository
6. Derivatives
7. Settlement
8. Trade Date
9. Trade Finance
10. Underwriting
Essentially, you can think of BOP as administrative work related to sales, delivery, and customer service. This includes financials administration, inventory management and storage, data entry, and call center operations.
Read: How To Put Machine Learning Models Into Production
Workflow Systems Supporting BOP
A workflow system is a business process management solution that focuses on automating specific aspects of your organization’s daily operations and management.
The back office is an essential part of every organization. No matter what type of company you work for, these operations play a crucial role in determining a company’s profitability and success.