Workplace 2000.

As is true in many other professions, men and women in accounting are searching for ways to achieve work, life and family balance. Some of the means that are currently popular include telecommuting, working flexible hours and "hoteling." The focus of this article is telecommuting.

The U.S. Department of Transportation estimates the number of people telecommuting to work in 1997 was around 7.5 million and will double by 2002. A recent survey in the U.S. showed 43.2 million Americans were working out of their homes in 1995. Estimates of the rate at which the telecommuting phenomenon will grow are about 20% per year.

In the 1995 AICPA report, "Experiences and Views of CPAs in Industry," the overriding comment from the people interviewed was the need for flexible policies to provide work, life and family balance. Those companies that have developed policies allowing flexibility should enjoy a more stable work force.

There are both benefits and detriments associated with telecommuting. Exhibit 1 below presents a list of these.

Exhibit 1

Pros

Commuting time saved. More than 50% of average company employees commute more than 40 minutes per day.

Perils of commuting. Late arrivals and early departures.

Family responsibilities. A child's routine health appointment turns into a sick day.

Increases work productivity 15-20%.

Telecommuters rend to work for longer stretches.

Reduces air pollution.

Real estate costs keep going up. Overcrowding can affect productivity and employee moral.

Cons

Loneliness and isolation.

At-home distractions.

Lack of necessary resources.

Poor work habits or lack of discipline.

Workaholic. Problems for those that have difficulty separating work time and time oft.

In 1997, the AICPA published "Flexible Work Arrangements in CPA Firms," issued by the AICPA Women and Family Issues Executive Committee and the AICPA Management of an Accounting Practice Committee (in collaboration with Barney Olmsted). This book provides a resource for those firms considering instituting flexible work arrangements and includes a checklist for an office at home, sample policies and sample request forms.

The Telecommuter Profile

There are several important personal characteristics to look for in employees when considering whether to institute telecommuting. Employees should:

* Be thorough;

* Work well in solitude;

* Not need to work with others;

* Be accommodating, thorough and reflective;

* Be comfortable with routine work; and

* Have a strong desire to do the job "by the book."

Work Suited to a Telecommuter

Certain people are better suited to telecommuting; the critical factors are an ability to work alone and be thorough and detailed. There are projects that CPA firms can use to determine whether telecommuting will work in an office and for which employees. In addition, certain jobs and tasks lend themselves better to telecommuting employees, including:

1. Short-term projects:

* Completion of an audit report following fieldwork;

* Compilation and reviews;

* Tax returns;

* Tax projections;

* Tax research;

* Special projects; and

* Bookkeeping projects; and

2. Long-term projects:

* Complex versions of the above;

* Systems manual;

* Organizing a "messy" set of books;

* Forensic projects; and

* Tax appeals.

"Flexible Work Arrangements in CPA Firms" suggests that before setting up a telecommuting program, a CPA firm should decide how the following issues will be handled.

Reversibility. This is a process for changing or reversing the telecommuting arrangement.

Privacy issues. The material taken from the office must be treated in the same confidential manner and in accordance with the company's operating procedures for privacy of information.

Insurance coverage. How will it be determined if an accident is work-related or not? Firms need to provide guidelines to ensure that safety rules are being observed.

Provision of furniture and supplies for the home office. Some companies provide all the necessary equipment, while others expect an employee to provide for the bulk of furniture and equipment needs and get reimbursed for office supplies. For example, Pacific Bell has a budget of $4,000 per year for a person's needs for an office at home; Hewlett-Packard's budget ranges from $4,000 to $6,000.

Other Issues

Employers must contend with other issues when considering a telecommuting program. For example, they have to consider nexus. Will employees be working in jurisdictions where the firm is not presently taxed or regulated? Another consideration will be how to verify the hours worked by a telecommuter, in addition to determining how the billing will be handled.

However these issues are handled, a telecommuting program should be established deliberately and thoroughly. A CPA firm should be alert to the problems that could arise and try to set policies that will guide both the firm and its employees in determining how these issues should be resolved. As accounting professionals strive to achieve a balance between work, life and family, arrangements such as telecommuting will increase.

FROM GLENYS M. ZIMRICK, CPA, GORDON, ODOM & DAVIS, INC., SACRAMENTO, CA, AND LARRY JAFFE, CPA, FORT LAUDERDALE, FL

Editor's note: Mr. Holub chairs the AICPA Tax Division's Tax Practice Management Committee. Ms. Zimrick and Mr. Jaffe are members of the committee.

If you would like additional information about this article, contact Mr. Holub at [phone].