How to Devise and Implement a Remote Work System

When the COVID pandemic hit in March, 2020 and government at all levels invoked sheltering and social distancing orders to mitigate the spread of infection, businesses of all sizes were forced to quickly implement remote, work-from-home systems whether they had them at the ready or not.

Many owners and principals in small accounting and tax practices were unprepared for the shift and became reluctant to close their offices because their employees wouldn’t have access to the right tools and data protections to securely access their company files without the fear of them becoming compromised.

As we continue to navigate the COVID-19 pandemic, remote work systems are still necessary and important. Not to mention—they also offer an opportunity to redefine your practice’s efficiency and profitability.

So, how do you devise and implement a remote work system?

Remote work systems come in many shapes and sizes. Finding one that’s the perfect match for you is entirely dependent on the unique needs of your business.

Here is a list of great resources to help get you started (or help you discover new ways to refine the systems you already have):

Here a few key tips to keep in mind:

Before investing in new technology, start by taking a second look at the tools you already have and seeing if they meet your needs - A common mistake company’s make is chasing after and spending big money on fancy applications or softwares without investigating whether their current systems have undiscovered features that already meet their needs.

A great example of this is the Microsoft Suite. If your employees already use several Microsoft apps for daily work (such as Outlook, Word, Excel, etc.) then why use Zoom for video calling? Microsoft already has an entire collection of applications (such as Microsoft Teams, SharePoint, and OneDrive) that are extremely remote work friendly. And if you’re already using its other applications, there’s a good chance you’re already paying for and have access to these additional tools.

Taking the time to exhaust the use of your current resources can help you save money and streamline your processes by consolidating the number of different technology tools needed to run your business.

Just as you have documented processes for in-person work, you should have have documented processes for remote work - Your employees need to know what’s expected of them while they work remotely. Therefore, it’s important to document your process and ensure your team knows exactly which tools and workflows they should follow while working remotely. For example, employees should know which exactly video conferencing software they should use to meet with clients. You don’t want one employee using Zoom while another uses Google Meet.

Taking the time to establish clear workflows ensures you’re offering a consistent and high-quality experience for your customers.

Now, let’s talk data security.

Security is the most essential ingredient to your remote work system. In fact, if you have a Preparer Tax Identification Number (PTIN) through the Internal Revenue Service, a practice security system and plan are required whether or not you have a remote work system.

“Protecting taxpayer data is not only a good business practice, it’s the law for professional tax preparers,” said IRS Commissioner Chuck Rettig. “Creating and putting into action a written data security plan is critical to protecting your clients and protecting your business.”

The Financial Services Modernization Act of 1999, also known as the Gramm-Leach-Bliley (GLB) Act, gives the Federal Trade Commission authority to set information safeguard regulations for various entities, including professional tax return preparers. According to the FTC Safeguards Rule, tax return preparers must create and enact security plans to protect client data. Failure to do so may result in an FTC investigation.

The IRS also may treat a violation of the FTC Safeguards Rule as a violation of IRS Revenue Procedure 2007-40, which sets the rules for tax professionals participating as an Authorized IRS e-file Provider.

The FTC-required information security plan must be appropriate to the company’s size and complexity, the nature and scope of its activities and the sensitivity of the customer information it handles. According to the FTC, each company, as part of its plan, must:

  • Designate one or more employees to coordinate its information security program;

  • Identify and assess the risks to customer information in each relevant area of the company’s operation and evaluate the effectiveness of the current safeguards for controlling these risks;

  • Design and implement a safeguards program and regularly monitor and test it;

  • Select service providers that can maintain appropriate safeguards, make sure the contract requires them to maintain safeguards and oversee their handling of customer information;

  • And evaluate and adjust the program in light of relevant circumstances, including changes in the firm’s business or operations, or the results of security testing and monitoring.

The FTC says the requirements are designed to be flexible so that companies can implement safeguards appropriate to their own circumstances. The Safeguards Rule requires companies to assess and address the risks to customer information in all areas of their operations.

Here are the essential links to help you create a data security plan as required by the IRS:

IRS Publication 4557, Safeguarding Taxpayer Data , details critical security measures that all tax professionals should enact. The publication also includes information on how to comply with the FTC Safeguards Rule, including a checklist of items for a prospective data security plan. Tax professionals are asked to focus on key areas such as employee management and training; information systems; and detecting system failures.

Read more about each of these:

Here are some links to help you select or improve the data security system for your business:

Information is power. We hope this post offered you some great insight, tips, and resources to devise and implement (or simply perfect) your remote work system with confidence!

Have questions?

Don’t hesitate to reach out and ask us via email at staff@michigantap.net.

Jon Hayes

A Michigan association of accountants and tax professionals.

http://www.michigantap.net
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