Benefits of Implementing Telecommuting in the Accounting Industry

BENEFITS OF IMPLEMENTING TELECOMMUTING IN THE ACCOUNTING INDUSTRY

Prepared for

Francois GnambiKadjo, MBA, MM
Managing Director of K.G Tax & Accounting solutions
Adjunct Accounting Faculty at Metro Community College

Prepared by
Sandra Starks

14 May 2012

MEMORANDUM

TO: Francois GnambiKadjo, MBA, MM
Managing Director of K.G Tax & Accounting Solutions
From: Sandra Starks, Student, and Future CPA
Date: 14 May 2012
Subject: Implementing Telecommuting in the Accounting Industry

I put this report together to show you how implementing telecommuting can save your accounting company money.

"Telecommuting is a practice in which an employee works at a location-- typically, but not always, one’s home—that is remote from the actual business facility in which he/she is employed." ( site source)

Research has shown that as a result of steadily escalating information technologies (IT), "collaborations between buyers and sellers, organizations and their members, customers, and clients, employers and employees, and coworkers have been going virtual" at the blink of eye.

A progressively rising work opportunity in many businesses and industries, the usage of telecommuting is projected to increase even more so in the future, heightened by new innovations in computer and communication technology.

Given the scope of this report you may want to consider implementing telecommuting in your business practice.

Thanks for giving me the opportunity to research and fortaking the time to read this report. If you have any questions, please let me know for I am free to do more research.

SYNOPSIS

This report is designed to support the recommendation that K.G Tax & Accounting Solutions implement a telecommuting policy from now on. By researching this procedure, I have found that telecommuting can save employers money, retain valued employees, as well as make employees happy. Employers can save tons of money on expenses resulting from workspaces, parking, and energy use, along with sick pay, just to name a few of the benefits. Research has shown having happier employees’ increases productivity. With site flexibility, a work environment can be chosen that best suits the teleworker’s approach, enhances creativity, and reduces disruptions in contrast to the customary office space. It will also show telecommuting can help companies retain valuable employees who require flexible schedules or move to another location. . Being flexible allows employees to decide when it would be more sensible and resourceful to run errands, make appointments, and transport children.This report will show the benefits of telecommuting for your company.

BENEFITS OF ADOPTING TELECOMMUTING IN THE ACCOUNTING INDUSTRY

INTRODUCTION
The purpose of this paper is to convince small to medium accounting firms and companies to invest in telecommuting.
"Telecommuting is generally defined as working from a remote location or home office, rather than working at a fixed employer-provided site or office. Telecommuting has grown about twenty percent a year over a ten year period." ( site source)
This report will show how telecommuting can save the company money, increase retention of valued employees, and help to create happier employees.

Telecommuting Saves the Company Money

The company can achieve substantial savings in amenities such as office and parking space requirements when employees telecommute.
Companies that telecommute save money in "office furniture, equipment and supplies, utilities, janitorial service, security, maintenance, paper goods, coffee and water service, as well as leased parking spaces." ( site source) Dow Chemical, for example, was able to save a third of non-real estate administrative costs by sending some workers home (Harnish, 2010). Despite the need to pay for equipment to enable employees to telecommute, downsizing facilities can help employers accumulate capital in the long run. Less employees in the office mean that fewer workspaces are needed, ultimately lowering utility costs; also, reduced maintenance overhead costs should be a direct result of less wear and tear on facilities and equipment. If property is owned, the free space can be sold (potentially providing a gain on the sale, positive income, and reduced property taxes) or leased (resulting in new intermittent income).
Another savings that telecommuting provides comes from lower absenteeism. Two-thirds of the people who call in sick aren’t (Meinert, 2011). They have to let in the cable guy, take a kid to the doctor, or have a doctor’s appointment themselves. In any case, working from home keeps people away from sick co-workers and allows them to start work sooner after illness or surgery. It also saves the company in paid sick leave.
And, finally there’s one big savings; if there’s a disaster or pandemic, a dispersed workforce can save your company from going out of business. Not having all your employees in one building means your people will be able to keep working when a blizzard, a flu outbreak, or a terrorist attack hits. When something happens, fewer people will be affected, your financial solidity will be more easily sustained, and stability of operations will be secured.

TelecommutingIncreasesRetention of Valued Employees

In these challenging economic times, the ability to telecommute may be a crucial component in drawing in and keeping high-potential employees while reducing recruiting and training costs.
Telecommuting assists businesses in preserving top talent, rather than losing them. Countless numbers of people leave their jobs annually. A great deal of this “job hopping” occurs because people desire to relocate to diverse settings. While they do take pleasure in their work, and would like to continue being employed by their current employer, most of them dislike their existing site. If people were able to telecommute without the fear of job loss, the amount of employee retraining for companies would decrease significantly. This increases general employee efficiency while keeping trustworthy and competent workers on the team.
Author Linda Shaw wrote in her book Telecommute! Go to Work without Leaving Home that “the labor pool of employees with specific talents will shrink, making employers more willing to make concessions to keep valued employees happy. A smaller labor pool combined with an increasing demand for highly skilled laborers has fueled employee-driven change in working environments. Scarce, highly skilled workers have begun to demand more flexible work arrangements, especially as they choose to live farther and farther from their employers” (Meinert,2011).
The expenses associated with losing a seasoned employee, then enlisting and teaching a new worker are all too common in accounting firms, where ongoing educational courses tend to be extremely expensive. Consequently, telecommuting is one alternative currently being seriously contemplated by firms hoping to hold on to valued employees. For example, KPMG Peat Marwick proclaimed its plan to offer flexible work schedules and work from home options to all its full-time employees. Other firms are considering exploring these alternatives as well (Theisen, 2005).
Research has shown that telecommuting has increased job satisfaction, reduced absenteeism, and lowered employee turn around.

TELECOMMUTING CREATES HAPPIER EMPLOYEE

The forces driving leader’s interest in telecommuting include, but are not limited to: the distressed economy, a scarcity of experienced specialists in certain areas, and heightened pressure on workers. "Three out of four employed parents say they don’t have enough time with their children," according to the Families and Work Institute’s (FWI) 2008 reportWorkplace Flexibility Among Small Employers (Meinert,2011)."Some employees value time more than money," says Ellen Galinsky, president and co-founder of the institute in New York City.
One way to help alleviate some of the tension felt by employees is allowing them to avoid lengthy commutes. This option offers them a greater work/life balance and eases strain on their wallets, potentially boosting productivity. Surveys have shown that business productivity increases anywhere from ten to one hundred percent, with the average being thirty percent (Theisen, 2005). This boost can be attributed to telecommuting employees working at peak times of the day when they are most productive, thus accomplishing lengthier uninterrupted work periods, often resulting in finished projects ahead of schedule.
In order for telecommuting to be effective, an employee must desire to be a telecommuter. Telecommuting employees who work from home have to be more readily available for conferences with their clients and supervisors via phone or e-mail than office workers. Most telecommuters need to preserve core times for accessibility to clients and business associates. They may also need to spend more time in the office or at client locations during peak seasons, while increasing telecommuting in slower months.

CONCLUSIONS AND RECOMMENDATIONS

Although telecommuting provides an array of advantages, some disadvantages of the process have been noted by both employees and employers, as well. When working from home many employees can feel disassociated from the company, and they may not be fully invested in its success. Employers can repair this through fostering these feelings among its employees by occasionally asking telecommuters within a given region to come together at central meeting places where they can get to know each other better. Businesses should also implement and promote distant employees to gather in virtual workplaces, where they can post pictures and personal information about themselves and take part in online activities that imitate those of real-world office, such as gift exchanges.
Telecommuting proposals should be considered on a position-by-position basis, rather than adopting “one size fits all”constraints. Prospective workers must be self-motivated; self-disciplined; and possess good problem solving and communication skills, both written and verbal.They must have organizational, and computer skills. It can be very costly to implement telecommuting, however many accounting firms already have much of the necessary computer equipment, including modems, fax machines, and CD-ROM equipment, making the capital outlay minimal. Many accountants already own computers and modems for home use, and other home products needed for telecommuting are widely available and easily installed. Once the necessary equipment is in place, the employer must identify the appropriate tasks and the employees to perform those tasks.
Some jobs lend themselves to working off-site, such as write-up work, tax return preparation, and computer data testing in off-peak hours. However, other assignments, such as financial statements, audits and consulting, require extensive client interaction and are less suitable for telecommuting, although certain aspects of these jobs identify the tasks that can be done at a remote location.
One key concern when identifying the tasks to be done at remote locations is guarding the security of client data. “The remote needs of telecommuters and other mobile staff create a hole in security walls with every connection,” cautions Kevin McNeely in Providence Business News. (Business, encyclopedia) but measures can be put into practice to permit employees access while barring unwanted trespassers. These measures include periodically updated password protection and informing employees concerning the need for remote access security.
Telecommuting has both advantages and disadvantages; however after researching both, I have found that the advantages of telecommuting far outweigh the disadvantages and would highly recommend that you adopt telecommuting for your company. Not only can telecommuting save you money, retain valued employees, and create happy employees; telecommuting can help the environment by reducing auto emissions and decreasing gas consumption. You can feel good about reducing commuting costs and contributing to a cleaner environment.
Telecommuting employees are usually more productive at home. While there are a plethora of disruptions in an office location, chatty coworkers, meetings, etc., an employee who has set himself or herself up appropriately at home has fewer interruptions. Employees also have the benefit of starting their day devoid of dealing with the aggravation of rush hour traffic, or being late because the car wouldn’t start.
Telecommuting is also advantageous during times of disaster. Whether concerns arise about contagious diseases, such as bird flu, or natural disasters, such as an earthquake or flood, telecommuters have more likely odds of continuing their work than employees who are required to travel to the office to work.
To decide whether telecommuting is a practical alternative for your business, try implementing a pilot program beginning in the non peak months. Most pilot programs last between six and eighteen months (Theisen, 2005). These programs assist in determining what other training and equipment may be required, the related expenses of telecommuting, and the most suitable tasks to be performed away from the office. When the pilot program is complete, management can assess and appraise its effectiveness based on employee morale, gains or drops in productivity, and other benchmarks.

References

All, A. (2008, December 9). Employers find telecommuting brings savings plus productivity. IT Business Edge. Retrieved from http://wwww.itbusinessedge.com/‌cm/‌community/‌features/‌articles/‌blog/‌employers-find-teleco...
Harnish, T. (2010, August 14). 8 ways telework can save you $20,000 a year [writer, Aerodite Inc./‌Kate Lister]. Retrieved from http://www.openforum.com/‌idea-hub/‌topics/‌money/‌article/‌8-way-telework-can-save-you-2...
Mayer, O. (2004, November 21). Accounting firm gives employees telecommuting, continuing education options. Denver Business Journal. Retrieved from http://www.bizjournals.com/‌denver/‌syories/‌2004/‌11/‌22/‌focus7.html?s=ptint
Meinert, D. (2011, June). Make telecommuting pay off. HRMagazine, 56(6), 33-37. Retrieved from http://ezproxy.bellevue.edu:80/‌login?url=http:search.proquest.com/‌docview/‌869070186?accountid=28125
Telecommuting.(n.d.). In Encyclopedia of Business [Reference for Business] (2nd ed.). (Original work published (n.d.). Retrieved from http://www.referenceforbusiness.com/‌small/‌Sm-Z/‌Telecommuing.html
Theisien, B. A. (2005, October). Telecommuting,an option for improving the CPA’s work environment.The CPA JOURNAL. Retrieved from http://www.nysscpa.org/‌cpajournal/

References: All, A. (2008, December 9). Employers find telecommuting brings savings plus productivity. IT Business Edge. Retrieved from http://wwww.itbusinessedge.com/‌cm/‌community/‌features/‌articles/‌blog/‌employers-find-teleco... Harnish, T. (2010, August 14). 8 ways telework can save you $20,000 a year [writer, Aerodite Inc./‌Kate Lister]. Retrieved from http://www.openforum.com/‌idea-hub/‌topics/‌money/‌article/‌8-way-telework-can-save-you-2... Mayer, O. (2004, November 21). Accounting firm gives employees telecommuting, continuing education options. Denver Business Journal. Retrieved from http://www.bizjournals.com/‌denver/‌syories/‌2004/‌11/‌22/‌focus7.html?s=ptint Meinert, D. (2011, June). Make telecommuting pay off. HRMagazine, 56(6), 33-37. Retrieved from http://ezproxy.bellevue.edu:80/‌login?url=http:search.proquest.com/‌docview/‌869070186?accountid=28125 Telecommuting.(n.d.). In Encyclopedia of Business [Reference for Business] (2nd ed.). (Original work published (n.d.). Retrieved from http://www.referenceforbusiness.com/‌small/‌Sm-Z/‌Telecommuing.html Theisien, B. A. (2005, October). Telecommuting,an option for improving the CPA’s work environment.The CPA JOURNAL. Retrieved from http://www.nysscpa.org/‌cpajournal/