Got a virtual office? Better get a physical address

About six months ago, we (NetAge) completed a process that had begun many years earlier. We went completely virtual. Jeff and I hadn't had desks in the physical NetAge office for at least a decade. For most of our lives, we've worked from home with our systems wired such that when a call came into the office for one of us, we could seamlessly pick it up from our home office. No biggie. Just a few extra bucks to the phone company, about which I cede to Ernestine, who can explain the "service" aspects of this far more succinctly than I.

It finally occurred to us that no one else needed to be in the office either and so we arranged to all go virtual.

For those of you able to make the move, highly recommended. Cuts down on the commute, wardrobe budget, cafeteria expenses, and so on and etc.

From a logistical standpoint, mainly it requires filling out change-of-address cards. And getting a post office box, which will enable you to realize, if you haven't already, how little mail of substance you actually receive. And how little of your office stuff you actually need.

Long before we vacated the premises, we moved our banking all online--paying bills, payroll, and receivables. We send electronic invoices to clients; they pay via direct deposit.

Imagine my surprise then when, after doing a recent presentation on virtual work, I submitted expenses, requesting direct deposit, and the client tells me that they cannot make the electronic payment without a physical address. A PO Box won't do. Mind you, there's nothing physical about the payment. Just a bunch of numbers streaming through the ether. When I explained that we didn't have a physical office, they said fine, that they'd send a physical check to the PO Box. OK. A bit irritating but OK. THEN, a few hours later they updated the arrangement, saying they couldn't send a physical check to the PO Box either, that Sarbanes-Oxley requires them to have a physical address for that as well.

Since I do want the reimbursement, I've reluctantly supplied my home address. And re-requested the direct deposit. Let's see what happens. My guess? A physical check may come to my home address.

By the way, I find this very odd. Other clients, also publicly-traded companies, have had no problem with this. Special SOX rules just for this company? I've requested interviews with those in charge so I can follow the money, so to speak, or, more accurately, the rules around the money. Meanwhile, virtual companies, beware. You may have to have a physical office just to be paid!

Comments

[Doug Cornelius]

Jessica -

It is not an explicit provision of SOX. It is just a policy of that company.

The policy is to prevent fraud and money laundering. Since a PO Box can hide the identity of the recipient, I have heard of a few companies that prohibit sending funds to PO Boxes.

Personally, I think it is kind of silly.

[jessica lipnack]

Thanks, Doug. That's what I figured, which prompted me to ask for the specific SOX provision after they used that as the reason. I wonder why the Fed tax ID # isn't sufficient for assurance that the organization is legit.

[Ken Follett]

We have a PO box for our business, and it has made control of the general mail flow much easier.

Where it becomes a problem for us, as we are involved in a narrow segment of the construction industry, is when clients send us overnight plans and specs. Though they could send them through the USPS the easier route for them is that FedEx has a box made to hold large plan sets and they pick up at the architect's, or blueprinter's shops... but FedEx will not deliver to a PO box. That does not, for some reason stop folks from addressing through Fed Ex to our PO box --- even when we provide them with our street home address -- and Fed Ex (sometimes UPS) blindly taking it into their system and sending it into geographic limbo.

I have had on a few occasions to chase around the countryside trying to figure out where the package went to... and this is always bothersome and usually a big waste of time.

A problem here is that I never know what is in the drawings until I receive them, that is why they are sending them in the first place. On the rare occasion time is of the essence and I need to act on the information like yesterday. Though most times I find myself with a big wad of paper for a project that if the sender had spent more than a few minutes to learn who we are, what we do, they would never have sent it in the first place.

Increasingly though I am receiving these documents through FTP in pdf files... and that makes life a whole lot easier, and it makes me able to be more directly responsive to those particular clients because they do not waste my time, energy or enthusiasm. These same clients also tend to know how to send checks in an efficient and timely manner. But not every design office in the world has quite caught up with the available technology.

But as to getting the check... I will never hesitate to get in the truck and go get the check in person. We did have a client overseas that would wire transfer but it also meant we had to sit on our account because they would never say when they were going to do so... and it was like pulling teeth to get them to do it when they did.

We find that often it is more work to get paid than it is to do the job itself.

[harmonsmith]

For the small home-based business or the newly established organization, professional virtual offices offer a convenient and cost-effective way to create a professional image for your company. I am also running a small business and after renting office provided by valleyhq I am very satisfied and feel like I am able to increase my business now.

[harmonsmith]

I think for small business owners these offices are like dream comes true. I am also running a small business and after renting office provided by [a vendor]. I am very satisfied and feel like I am able to increase my business now.

[jessica lipnack]

Harmonsmith - thanks for posting and I agree that renting can be an option but I don't allow advertising on my blog. Thus I've taken out the vendor name, having deleted your prior attempt. I hope this explains what's happening.

[Denver CO Offices]

I agree with what you said about going virtual. It can save businesses lots of money when they don't need to have an office. It's also nice to get to work from home.

[virtual office]

I agree with what you've said about virtual. this thing can make a big difference and it will favor to those working mom. they can work even they're at home.

Margarette Smith

[Alice01]

Good post. Nice information has been given. I agree with your comment. The post seems to be very informative one. Virtual office is becoming more important now a days. It is more benefited to the business people.

[jessica lipnack]

Thanks, Alice. Unfortunately, I don't allow advertising here so I've deleted the link to your business.