Discussion:At capacity - how to tell

From TaxAlmanac, A Free Online Resource for Tax Professionals
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.

From TaxAlmanac

Jump to: navigation, search

Discussion Forum Index --> Basic Tax Questions --> At capacity - how to tell
Discussion Forum Index --> Tax Questions --> At capacity - how to tell

Natalie (talk\|edits) said:	February 1, 2008
How do you tell if you are at capacity and when you need to start turning down potential clients? I've always been able to take on any new clients I wanted, but now I think I'm close to being at the 100% mark consistently. I work by myself, and I do not want to hire others at this point.

Irsfixer (talk\|edits) said:	1 February 2008
That depends on how many hours you are willing to work a week. Capacity is subjective.

JAD (talk|edits) said:

1 February 2008

I had the same question. Plus I didn't want to turn anyone away because I was afraid of "bad karma". That it would be a sign of being too cocky, and then a bunch of clients would leave, and I would feel sorry. When I realized that I was at the edge of not being able to properly serve existing clients if I took on one more responsibility, the fear that everyone would leave at once became less overwhelming. To restate, the fear of failing existing clients outweighed the fear of not having enough work. I also have two children. Enough said.

TaxFlake (talk\|edits) said:	1 February 2008
Hi all! My first post.:) Congrats Nat on reaching the 'point'. I know when I get there, my price quotes will double for new clients, and I'll start sending the PITAs on their way by telling them next years fees will be tripling!

Natalie (talk|edits) said:

February 1, 2008

Well, I'm not sure I am actually "there" yet. I have had a backlog of work since last March, but it's only because I started March off with a really big job. Then one of my clients lost a bookkeeper, so I had some training and fill in work to do. Then that same client's other bookkeeper was sick for a month, so I had to fill in again. I have enough work to keep me busy for at least the next month if nothing else comes in the door, but does that mean I should start turning down work now?

And I do not want to work any more hours.

Belle (talk|edits) said:

February 1, 2008

Natalie, my husband's motto has always been "work to live, not live to work". Based on your profile, you seem to have that view well in hand. MY biggest problem is ego; I really think I can do a better job for a client than most anyone else around (assuming the return isn't over my skill level).... so I have a hard time turning new clients down. I'm a sucker for their various & sundry stories. IMHO, if you are asking the question, you are probably getting close to capacity. Good luck!

Bottom Line (talk|edits) said:

1 February 2008

I'm at capacity if not over. I work at least 60 hours a week during non-tax time. But I've never worked only 40 hours since I got out of college (summers I worked a lot of hours too). It's my personality. I learned that I was over capacity when I started letting down good clients. About four years ago I had an epiphany and "fired" five clients. I worried about it for a week before hand. I fired those five and sweated for a whole day until I got two new clients to replace them. One big (a full day each week) client is phasing out (semi-retirement) so I had space to take a new one. Turning people down is difficult because I think that I can squeeze one more in and then I get stressed with deadlines. I have to keep reminding myself that it's better to turn them down (and refer them elsewhere) than to do a poor job for them. I also work by myself. I've finally learned that I'm not good at managing people. I am too soft on them and then want to review each transaction before the work goes to the client.

DZCPA (talk\|edits) said:	1 February 2008
You have 20 tax clients. Why are you so busy? Delegate out some of the bookkeeping work. You can spend more of your time on higher level work.

Natalie (talk|edits) said:

February 1, 2008

I provide a lot of accounting/consulting services and am getting into forensic accounting. Tax is really quite a small portion of what I do. The client I mentioned above is my bread and butter. I do their 990, quarterly compilations, accounting manual updates, bookkeeper training, audit workpaper prep and other monthly work for them. The big project I referred to was my second forensic accounting job -- it was over 20 hours per week for a couple of months.

A significant amount of my work is nonrecurring, e.g., the forensic job. After I help a business transfer its accounting system or work with the owner to get better information from the financials, the level of my involvement drops off. I guess that's why I'm struggling with this. I think it would be easier to determine if I had a full load if I always did the same thing for my clients year in and year out.

I just turned down a 1040 client today and a 990. I also interviewed with another company that needs to go from a manual system to a computerized package. While my time is constrained, this kind of work interests me. It does, however, require more time in the beginning to get to know their systems and set things up right. This particular opportunity is what prompted me to ask the question.

I've also been spending quite a lot of time on TA lately.

Smokeytax (talk|edits) said:

1 February 2008

Natalie - Why don't you see if you can find a new self employed accountant in your area to refer overflow work to? Then you wouldn't feel so odd about turning down work, since you would be establishing a mutually beneficial relationship.

(This may not be possible for this year's tax season.)

Good luck!

Bottom Line (talk|edits) said:

1 February 2008

I try to limit myself to two large projects at a time (and none during tax season). Last summer I had six going at the same time (two because of embezzlements) and it completely blew my schedule. Sounds like your challenge is doing big projects vs routine accounting work. I agree that I like the big projects but would be hesitant to try to make a living off them. I've got that on the back burner for when I retire (!?).

Szptax (talk|edits) said:

1 February 2008

For life balance, I hired an assistant for tax season & fired some PIA clients. That being said I feel much less stress & I am of course less busy! There is also a local personal consierge service for when I really get crazy. They can do my grocery shopping! I may not have taken these steps except my husband got a new job that has him traveling maybe a couple of days a week & the kids have their schedules that don't change for tax season. In the past, when I have been overwhelmed, I have "borrowed" personnel from another CPA that I know in the area.