The Financial Advantages and Opportunities You Have With Remote Work‍

There are some significant advantages to engaging with remote working practices. This is among the reasons many businesses and employees are keen to keep engaging with it for the long haul. Indeed, the future of employment is likely to revolve around these more flexible workforces. The benefits surrounding a better work-life balance and improved productivity have been explored in some depth. But most people have only touched the surface of the financial pluses this approach offers.

The fact is, a lot of people have only just started to discover just how varied this element of remote work can be. As more individuals and corporations embrace the practice there are increasing reports of financial advantages and opportunities most hadn’t previously considered. Indeed, even the more obvious areas can be optimized to have a more positive impact on everyone involved.

So, let’s take a closer look at the financial advantages and opportunities you have with remote work. Whether as an employee or a company leader, there are elements worth exploring further.

Lower Overheads

One of the primary benefits for both workers and businesses when it comes to remote operations is the potential for lower overheads. Working from home can mean there is less need to dedicate resources just to make sure you can keep functioning professionally. This means more of your income or profits can go toward ensuring your long-term stability. Aside from anything else, this can be a serious influencer to lower stress levels.

As an employee, the way your overheads are lower is most evident in the costs involved with your commute to work. You’re not having to pay for gas and your insurance premiums may even be lower. However, remote operations can also empower you to live in a location with lower costs of living. There are certainly some key considerations that should go into choosing where you work from home. There may be higher property taxes in some areas, or you want to make sure there are sufficient amenities. But you’re not limited to more expensive homes within commuting distance.

For businesses, there is no need to invest in office space or the full range of utilities. There will still be some expenses. If you are employing people full time there is a reasonable expectation to provide them with equipment and other resources. However, the reductions in rent or mortgage costs, property taxes, and maintenance costs can make the switch more than worthwhile.

Tax Benefits

Remote working is a new experience for a lot of people. As such, one of the areas too often overlooked is the potential for tax breaks. The fact is, in some circumstances, both workers and employers can take advantage of deductions in ways they wouldn’t usually be able to in traditional business environments.

As a full-time remote employee, you generally can’t claim deductions for your out-of-pocket home office expenses. However, if you are set up as a self-employed remote worker or freelancer, you may be able to take advantage of reasonable costs. You’ll find this applies only to purely work-related items. However, you can often claim a proportion of some home expenses such as rent or utility costs.

You need to calculate these to accurately represent business costs. For example, if your home office takes up 30% of your home, you could claim 30% of your rent as a tax deduction. This doesn’t apply if you’re working from a table in your kitchen, though. It has to be a dedicated space. Keep accurate records of all these expenses and your calculations, as you’ll need them if you’re subject to an audit. You can find all kinds of tools and resources ranging from free tax bracket calculators to expense-tracking apps—all of which can make things significantly easier.

For full-time remote workers and businesses, the better route to go is a provision of a home working allowance. For workers, this means you get to use some resources toward your costs without using your own wages or needing to pay income tax on this. For businesses, you can usually claim the amounts you provide workers as part of your tax reporting.

Sustainability Savings

There is a clear ethical responsibility for businesses and individuals to adopt environmentally friendly measures. Shifting to remote work practices can offer great opportunities to meaningfully engage here. The outcome is not only the potential for effective sustainability, though. Your green actions can save you some money along the way.

As an employee, you may need to make some adaptations to your home office to make it suitable for your work. There are sustainable interior design options that reduce your negative impact on the environment and minimize your initial investment. This includes sourcing recycled and upcycled office furniture. Adopting energy-efficient light bulbs reduces light pollution and uses fewer finite resources. From a financial perspective, they also save you money on your utility bills and may need to be replaced less frequently.

From an employer’s point of view, the choices of equipment you provide to remote workers can prioritize sustainability while reducing costs. Refurbished computers and smartphones tend to be lower in cost and minimize the electronic waste pressure on landfills. You should also consider favoring Energy Star-rated equipment. This is the government-backed standard for efficient appliances. Investing in these items can lower the utility costs your workers claim from their working from home allowance.

Diversity Perks

Diversity has become a core ethical consideration in our society today. It also has a role to play in remote operations. The key here is exploring the various definitions of the word. Making efforts to focus on diversity when working from home, can not only improve your experience but also tends to result in some clear financial advantages.

As an employee, you can establish methods to take advantage of a diverse income. For instance, you can ensure your life as a freelancer programmer is more successful by marketing your services in a way that gains a range of quality clients. You could also choose to work a couple of part-time remote jobs. The point is, that your diverse income can provide an element of stability. You’re not relying on a single source of salary. The reduced need to commute to the workplace can also give you time to dedicate to creative endeavours you’re passionate about that provide you with a passive income. Making YouTube videos or designing apparel can be effective here.

For businesses, you can benefit from a truly global and diverse talent pool. This means you are not limited to a narrow selection of local workers. You can attract the most productive employees, resulting in a greater return on your investment. There is also evidence to suggest a diverse employee base can breed the kind of innovation that boosts your financial results.

Employment Choices

An outstanding feature of remote work is the freedom of choice for everyone involved. It has made the potential for positive professional and financial outcomes accessible to the wider population. Whether a business owner or worker you can shape your employment scenario to fit your priorities.

We’ve already covered the fact that as an employee you can operate from anywhere in the world. But you can target employment with businesses based anywhere, too. This means chances to work with companies offering salaries usually designed for the higher costs of living near their headquarters. Your distance from industry hubs is also no longer a barrier to a lucrative career in the way it would have been just a few years ago. Your dream job with a larger salary is accessible from wherever you happen to be.

Similarly, as a business, you can avoid the need to pay city-level salaries in your early years of operation and still connect with talented professionals. There is still, of course, an ethical duty not to target low-income communities and pay them less than their talents are worth. This is behaviour that perpetuates poverty cycles. You can be reasonable while still saving money by not being restrained by the salary standards set by the big-city corporations.

Conclusion

Remote operations don’t just offer the potential for greater productivity and comfortable working conditions. Lower overheads can mean both workers and employers can reduce pressure on their budgets. There are also significant benefits to be gained from prioritizing sustainability and diversity in virtual workspaces. It can take some planning and careful consideration, but everyone involved can find ways to capitalize on the shift to remote working.

Author's Bio

Dan Matthews is a freelance writer and content consultant who specializes invaluable insights when it comes to digital marketing and technology. If Dan isn't writing, you will find him with a coffee in one hand and searching his phone for new music in the other.