The rise of remote work has impacted the majority of industries across the U.S. The Bureau of Labor Statistics found that between 2019 and 2021 the percentage of remote workers rose from less than 17% to over 39% among professional, scientific, and technical services—including tax professionals. Adopting remote working practices comes with both advantages and disadvantages: how can you communicate well across geographies and time zones and make sure the client gets the best product?

Remote work can take several different forms. You may meet virtually with clients either occasionally or exclusively. You may hire employees who work remotely—and these employees may either be U.S.-based or live outside the U.S. The latter in particular has been on the rise as U.S. employers have encountered a shortage of qualified talent in their industry. Each type of remote work brings up different considerations and challenges. This article will primarily focus on how to successfully work with remote employees. 

Keeping Compliant

Tax planners know that part of their ethical requirements are defined by Circular 230—a publication that outlines rules governing those who practice before the IRS including attorneys, CPAs, and EAs. When it comes to Circular 230, anyone working for your tax practice needs to be aware of what compliance looks like because, ultimately, you as the employer are responsible for any failures to comply. This applies to full-time tax professionals, administrative employees, and even contractors. Just because you hired someone through a contracting service or another intermediary does not mean we are free from our obligations to ensure our firm is upholding Circular 230 ethical requirements. 

In fact, if you should have known that someone was engaged in a pattern or practice of non-compliance and you fail to do anything about it, you can be held responsible. This is so-called “willful blindness.” Circular 230 guidelines will not allow for the excuse that you suspected there could be a problem but you didn’t know for sure—it’s your responsibility to detect problematic behavior and resolve it swiftly.

The key here is to have adequate procedures in place. Because you will not be interacting with these workers in-person day-to-day, you will want to be especially attentive to having the proper controls in place to review employees and their work. Ideally, you would even build systems to have the owner’s work reviewed by a second party. As straightforward as it seems, some firms neglect to formalize a standard operating procedure for their firm. This should include policies and procedures for assignment of work to ensure matters are handled by workers with the competence to complete everything with excellence. Otherwise, we will need to provide the mentorship and supervision needed, so workers are able to learn how to take on new tasks.

Another key factor is time. One reason we recommend having a lower volume practice is because we need adequate time to do the best possible job for our clients. 

Consider this as a best practice: implement a structure that provides appropriate supervision for all employees, especially newcomers. In the first three to six months, set up a probationary period where the new employee gets special training and oversight to ensure they understand the firm’s mission and goals and how the firm operates. 

If someone on your team does break a rule when it comes to Circular 230, prompt and remedial action needs to be taken. Remember, the consequences of non-compliance go beyond an employee’s performance and can have both legal and ethical implications. You also do not want to assume that your employees are up-to-date on the requirements. You want to be set up to provide continuing education and mentorship, so they can learn and grow.

Security Training

An essential consideration for remote work in a tax practice is security and technology. The data absolutely has to be transferred securely. Consider this: if someone is working from their home office, is that space secured? Does their laptop have a physical location where it can be securely stored? These are systems and requirements that you need to have in place before you consider shifting to remote work. 

Best practices for remote workers include:

Establishing a written information security plan (WISP). We cover this further in our article on ethics and technology, but you need to ensure your WISP procedures protect taxpayer data, especially when it comes to information transfers. You cannot simply rely on email. You will need to set up a secure portal or similar digital space where sensitive data can be shared safely. 

Consider also that voice assistants like Alexa and Siri are always listening. This means it can potentially be a confidentiality issue if they are active on your smartphone or other devices while you are having client conversations in your office. You want to take every possible measure, including turning off certain apps and devices, to protect your clients’ data.  

Providing guidance on remote work locations and securing personal identifiable information (PII). This can be as simple as instructing employees on securely putting away files and laptops at the end of a workday. If you or other workers share workspaces with different practitioners, consider how to maintain confidentiality and ensure that everyone knows who is affiliated with your tax practice and who is not. 

Conducting regular employee training programs on data security. Establish a learning culture that includes remote workers and contractors. Whether your employees are U.S.-based or outside of the U.S., ensure that everyone is aware of current tax law and knows when updates occur. As an employer, you are responsible for giving them the most accurate information on what technological compliance looks like.  

Modes of Communication 

Lastly, you will need to think about how to effectively communicate with clients in remote environments. Do you communicate all in writing? Do you primarily use the phone or Zoom?

What is your standard practice? 

Some tax practices will tend to adapt to the preferences of each client. If the client prefers in-person meetings, then so be it. Email only? The team adapts. However, when it comes to building up your tax practice, you want to start by thinking about your ideal client. More likely than not, that ideal client is someone who is willing to communicate with you using your preferred methods. When your firm has three or four different communication processes for working with clients, your operations can quickly become too chaotic. Not everybody is on the same page, and your team is not working as efficiently. 

Be willing to state upfront how you typically communicate when you bring on a new client, which might mean clarifying that you do not do in-person meetings. If you or members of your team need to communicate solely via Zoom or email due to their location or other constraints, build this expectation into your onboarding process with clients. Remember that clarity actually helps everyone so that expectations are aligned and there is synergy in your working dynamic.

Summary

As remote work continues to become popular, tax practitioners need to know how to set themselves, their employees, and their clients up for success in the world of asynchronous and virtual work. Follow these remote work best practices and focus on both hiring and training people with technological competence in mind. 

To learn more about best practices for running an ethical and successful tax practice in the digital age, sign up to become a Certified Tax Planner today.