CPA Practice Advisor

OCT 2011

Today's Technology for Tomorrow's Firm.

Issue link: https://cpapracticeadvisor.epubxp.com/i/42507

Contents of this Issue

Navigation

Page 13 of 35

TIPS & TRICKS Is the Virtual Practice Model Right for Your Firm? W Isaac M. O'Bannon, Technology Editor Isaac is the Technology Editor for CPA Practice Advisor, having joined the publication in September 2002. Through his experience in the areas of consumer and professional- level software and peripherals, as well as knowledge of the public accounting fi eld, he provides reviews of technologies used by accountants and their business clients as well as contributing a regular column that provides helpful information that ranges from improving search techniques, when to upgrade a computer and computing security issues. He can be reached at isaac.obannon@ cpapracticeadvisor.com. When we fi rst started writing about web-based programs about 10 years ago, the focus frequently centered on the key benefi ts of anywhere/anytime access to client and fi rm data and the enhanced security of data stored in online systems. Yes, this data is safer "in the cloud" than on a computer or server in your office, which is at risk of physical damage, fi re, theſt , fl ooding or a variety of other disasters. You also have the added comfort of redundant servers, where major technology service pro- viders automatically keep backups at separate physical locations. As the years have progressed, mobility has certainly proven anything but a fad or a convenient add-on to practice workfl ows. And over the past fi ve years, with the advent and mass adoption of smartphones and remote apps, the mobility movement has shown itself to be a powerful force in reshaping the very structure and workfl ow of modern practices. Many practices have realized the benefi t of remote workers, particularly with being able to recruit and retain talent. For an increasing number of tax and accounting professionals, however, this total mobility has even resulted in the dissolution of "the offi ce" as it has long been understood. While the profession has had remote workers for years, the fairly recent ability to truly have the same workplace capabilities from home, the airport, a coff ee shop or even a faraway beach, has led some business management to rethink the need for walls and a physical business address at all. MOST OF THE TANGIBLE BENEFITS TO GOING TRULY VIRTUAL ARE REALIZED BY SMALL FIRMS AND SOLE PRACTITIONERS THAT HAVE ALREADY STARTED TO ADOPT WEB-BASED PROGRAMS. 14 October 2011 • www.CPAPracticeAdvisor.com Why would a fi rm go virtual? T ere are obvious fi nancial incentives to ditching or reducing the amount of space in a physical offi ce, starting with the cost of rent or the mortgage. However, many practitioners consider the equity and eventual ownership of a building to be part of their retirement exit strategy, as it is an asset that can eventually be sold. Firms will also realize a savings on utilities and maintenance costs. However, most of the tangible benefits to going truly virtual are realized by small fi rms and sole prac- titioners that have already started to adopt web-based programs. This decrease in overhead can also make it much easier to start a new fi rm. For larger practices, the potential savings are not as signifi cant, and personnel management issues can be more dif- fi cult. Other benefi ts include the ability to easily hire or contract with profes- sionals who are located anywhere across the country. Virtual isn't for everyone I noted that going completely virtual may not be as desirable or carry the same benefits for larger practices, although some have found success in such a move, such as Accounting Department.com, which has a staff of more than 40 full-time employees dispersed across the United States. But there are many other reasons that going virtual might not be a good move, starting with client needs. Think about your firm and how oſt en your clients actually come into your offi ce. If it is a somewhat rare event, then perhaps you could go virtual, meeting with clients at their businesses, at a shared offi ce space, or by video or phone conference. But if you have more of a retail practice that relies on frequent client visits or walk-ins, then it's probably not for you. Some people desire the structure and organization that a traditional offi ce instills, and some worry that they may be too easily distracted in a home offi ce set ing. And there are those who consider the idea just completely ludicrous. For these individuals, "the offi ce is the offi ce," and it shall not be mingled with a home offi ce. The hybrid alternative Many very small fi rms and sole prac- titioners are experimenting with maintaining an office, but using it about as oſt en as they work from other locations. T is allows the solidity of a physical presence, while being almost as flexible as a totally virtual firm. Some professionals I've profi led in our Productivity in Practice series who operate this way include CPAs Michael Hsu, Kara Haas, Chad Bordeaux, Elizabeth Davis and William Miranda. And even in practices with 15 to 20 staff , there's a successful variation on this option. At this level, there are undoubtedly some professionals who are more production-focused, who rarely, if ever, meet with clients, and who are already doing most of their work collaboration with other staff via electronic means, such as email and portals. If half of such a fi rm's staff were encouraged to work from a home offi ce, it would allow the practice to downsize its physical offi ce footprint. The virtual office may not be everywhere yet, but it is here. For those who embrace it, there are numerous benefi ts, but it's not for every fi rm or for every client base. Ecommerce revolutionized many aspects in the retail space, but it did not eliminate the need for the brick and mortar business. And the physical tax and accounting office won't disappear anytime soon. SaaS-inclined, on-the- go professionals simply have another option.

Articles in this issue

Links on this page

Archives of this issue

view archives of CPA Practice Advisor - OCT 2011