AICPA Top Technology Case Study

Mobile and Remote Computing debuted as one of the AICPA’s 2007 Top Technology Initiatives, indicating the accounting profession’s interest in technologies that support working in the field or out of the office. The ways in which CPAs and accountants use these new technologies continue to evolve, especially at KAF Financial Group, where Project Balance is a viable, working solution to getting more work done without being tied to the office.

Imagine weekend ski trips in March and April. Picture yourself at home for dinner every night. Visualize an empty office on Saturdays — even during busy season. This is a not a pipedream — it is real, and it works for KAF Financial Group in Braintree, Massachusetts.

This team of 55 accounting, tax and business advisors has a strong commitment to providing clients outstanding levels of expertise and exceptional service. However, to continue improving service without burning out its employees, KAF’s partners recently looked at ways to radically change the way the company and its people work. Project Balance was born.

“I’m no longer tied to this office. I usually leave by six to have dinner with my family and catch up with my kids,” says Mark Albrecht, CPA, a partner with KAF. “When they do their homework or go to bed, I link in with my office to get work done.”

New hardware, software and networking technologies helped launch this radical change. The KAF staff were ready, as were their clients, who had become accustomed to — and even preferred — electronically communicating with the staff. On the staff side, everyone from partners to administrators believed that effective work/life balance would make them happier while improving the firm’s service.

Industry trends indicate mobility and remote computing is only going to escalate. According to an April 2006 Deloitte Consulting report, “Eye to the Future — How Technology, Media and Telecommunications Advances Could Change the Way We Live in 2010,” the number of employees with always-on mobile e-mail is forecast to rise from the current millions to at least tens of millions by 2010. KAF’s Project Balance initiative has three main components: 1) a digital paperless office; 2) mobile/remote computing strategy; and 3) new processes that allow people to work in a more flexible work environment.

In 2001, KAF was among the first CPA firms to embrace the paperless office, a fundamental component of any viable mobile and remote computing solution. As part of their paperless office implementation, the firm revised it’s processes so that client source documents are scanned early on. Once digital, they can be tracked electronically and are easily accessible to staff members working remotely. “You can’t access data from a paper file remotely,” says Barry MacQuarrie, CPA.CITP, director of Technology for KAF and the manager of the technology portion of Project Balance.

KAF’s next major milestone was to design and implement its mobile/remote computing solution. The backbone is a Citrix Presentation Server, a remote access software application and publishing product that resides on a Microsoft Windows-based server, and enables secure, remote access to data and applications on KAF’s network. KAF then installed a Web-based workflow software application called XCM, developed by its sister company — XCM Solutions. As a task moves through the workflow process, XCM electronically tracks every step of KAF’s processes and serves as the repository for all the information pertaining to the particular task, such as questions, answers, review points, and assembly and shipping instructions. In addition, XCM sends a notification e-mail to the person assigned to work on the task. With XCM and a remote access server, data and applications are accessible to the staff from anywhere and at any time. If there is a question on a tax return, for example, any staff member, with the appropriate permissions, can access the needed data and answer it from wherever they are — in the office, at home, or at an on-site client engagement.

According to Albrecht, questions used to hold up returns for days. “Now, the preparer sends questions through the XCM application. Not only does the task get posted to my XCM home page, it also sends an e-mail to my BlackBerry.”

With the ability to remotely access data and applications, the team also had to be equipped with the right hardware. The majority of the KAF staff have a BlackBerry and carry a Dell laptop to complement their mobile phones. Standardized hardware, software and services, allow KAF to purchase in bulk, achieving a cost benefit, while at the same time keeping technology up-to-date, interchangeable and easy to support. It also ensures that all hardware and software interfacing with network resources comply with the firm’s security standards.

To ensure that data is secure, all remote access sessions and BlackBerry transmissions are encrypted. KAF also has strict physical policies and security procedures. Each laptop contains Computrace anti-theft tracking software from Absolute Software that helps the firm locate stolen hardware and allows them to delete data remotely.

With everything electronic and so many employees working remotely, what happens when a staff member cannot access a network resource or requires IT support? Even KAF’s internal IT support services can be doled out remotely. KAF’s technology support team is equipped with remote access capabilities, and can fix most problems regardless of the user’s location.

KAF’s Project Balance initiative has many benefits for the firm, its clients and staff. Flexible work schedules have led to happier employees and improved productivity, while always-on mobile e-mail and extended business hours have improved customer service and led to greater customer satisfaction.

The combination of the paperless office, XCM workflow process, and the remote access server — which enables virtual access to applications and data — has decreased the number of write-offs and increased revenue per full-time equivalent. The firm estimates revenue per full-time employee was 15 percent higher during the most recent tax season, and credits much of this increase to productivity gains related to Project Balance.

Cathy Foley, a CPA with KAF, effectively managed work/life balance for years. In addition to working four days per week and managing a team of tax professionals, she has two sons, ages 15 and 6, and a daughter, age 12. In her situation, there’s no such thing as downtime. “With Project Balance, I’m measurably more productive,” she says. “It’s the technology, the partners’ commitment to making this work and the acceptance of this work model from everyone at the firm that has made the difference. It’s here to stay.” Albrecht adds, “Prior to our technology improvements, we would work 14 to 15 hours a day, and end up only billing 7 to 8 hours. Where did the other hours go? We spent them looking for files, moving files around the office and dealing with minutiae.”

From his experience, Albrecht believes that with the right tools to allow staff to do their work in the office or at home, lost unbilled time is significantly reduced. Employees are also happier since KAF began Project Balance — they can be home with their families, and have control over where and when they work. “It’s similar to running your own business,” says Albrecht. “Some even take vacations during tax season. They watch their BlackBerries from the slopes or beach.”

Albrecht recently indulged in one of his passions by traveling to the NCAA hockey tournament — two weeks before the April tax deadline. “I’m able to do that because I can bring my laptop, sit in a hotel, tie into my office and do my work remotely,” he says.

Demonstrating the entrepreneurial spirit behind Project Balance, Foley, who manages six people in the firm’s tax department, agreed to give the firm more hours during tax season in exchange for more flexibility. “If they’re stuck on something or if there’s a client issue, they can reach me. If there’s something going on with my kids at school, it gives me the ability to deal with that as well. I’m always reachable via my BlackBerry. Our technology gives me days to volunteer in the classroom, and drive to football practice and dance lessons. I’m at home when my kids go out the door and when they come home.”

According to a two-month survey commissioned by Manpower and conducted by True North Research in 2006, 80 percent of 900 respondents said they prefer telecommuting to physical commuting. This wide spread sentiment has inspired KAF to capitalize on their mobile and remote capabilities by incorporating Project Balance into recruiting efforts. Recruits regularly ask about the firm’s philosophy on flexibility regarding when and where they work, and are genuinely impressed with the firm’s progressive stance.

One of the strongest, and most important, benefits of Project Balance is improved client service. “Take tax season alone,” explains MacQuarrie, “with XCM and our digital office, there’s less telephone and e-mail tag, and everything is at our fingertips when a client calls.”

KAF’s remote/mobile technologies allow the staff to work more efficiently, and with a more streamlined communication process than most CPA firms. This benefits clients via increased access to the KAF team, and quicker response to their inquiries. KAF is also able to turn around work more quickly. The firm regularly completes combined audits, corporate and individual returns for many of its clients all before the April tax deadline.

One client, Paul Hart, owner of The Lantana, a special events facility based in Randolph, Massachusetts, credits the KAF staff for their responsiveness and quick turn around. “Every time I have questions, whether e-mail or phone, they get back to me right away. They lay my concerns to rest so I can focus on my business.” KAF guided Hart when he bought his business. They provide him tax services and general business consulting, as well as business planning and financing.

Plans are underway to look to the future for ways to build on Project Balance. MacQuarrie notes that KAF is researching other technologies, such as wireless Internet access, instant messaging and client portals. He is also looking at ways to use Web conferencing for some client meetings. These new technologies will continue to support the firm’s work/life initiatives, increase productivity and efficiencies, and allow the firm to enhance service to its clients.

For more information on Remote and Mobile Computing, visit the AICPA’s Top Technology Intiative’s Web site: www.aicpa.org/toptech.

Reproduced with permission of AICPA

© 2007, American Institute of Certified Public Accountants, Inc. © 2007 AICPA. This checklist is part of a series of Content Suites created by the AICPA’s IT Executive Committee to help Information Technology Section members and Certified Information Technology Professional (CITP) credential holders in their everyday technology life.Opinions of authors and the AICPA staff are their own and do not necessarily reflect policies of the Institute or the Information Technology Section. Any hardware or software products mentioned do not in any way represent an endorsement by the Institute or Section.

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