You work in a virtual office, if you work from your home utilizing a computer, modem, fax machine, email or other electronic means to perform your job and communicate with your place of employment or you operate your own business. In other words, you are telecomputing. Even though a virtual employee may use a company email address, mailing address and phone extension, but he still works from an outside location.

Working in a virtual office can be frustrating. A virtual office worker can work in any clothes, eliminating the cost of a business wardrobe. Expenses such as office supplies can either be billed back to the home office or written off on his taxes. Telecommuting may even eliminate the expense of day care or a baby sitter. The virtual employee is able to work without the distractions of a busy office. He won't be interrupted by a coworker's phone calls, office gossip, or a last minute meeting.

There are downsides to a virtual office as well. Working by one's self is lonely. There are also many distractions at home, such as the refrigerator, the telephone, the Internet, the kids, and many more. It takes a disciplined person to be able to work in a virtual office.

The virtual office worker doesn't necessarily need to be an employee. The virtual office worker can also be someone who owns his own business and works from his home. The owner of a virtual office can also be an independent contractor or freelance worker.