Do you like what you do?

Do you ever have a client sitting across from you, watching you scan through 38 pages of a 1099 as you are also trying to find where to input amortized bond premium into your software, who pulls you back into reality by asking you, "Do you like what you do?"

Do you ever have a client sitting across from you, watching you scan through 38 pages of a 1099 as you are also trying to find where to input amortized bond premium into your software, who pulls you back into reality by asking you, "Do you like what you do?"

I became a CPA in 1986, many friends became cops and teachers. They made 50K when I made 25K. 5-8 years later they made 100K when I made 75K. I hated it. Worked 60 hours a week in tax season etc. (Yes, cops and teachers make 100 to 150K on Long Island)

Now my income is pretty darn good, I only work 4 days a week except tax seasons and am selective with my clients. So, for me, yes, I like what I do. I make an above average living in my 50's. I have a sense of purpose, I am respected by most clients and I believe I make a difference. Some of it sucks as you have described but it can't all be glory.

I think its a good time to major in accounting.

For the past 5 years I've hated what I do. I would give anything to get out of this and into something that is not so incredibly seasonal. I sold a portion of my practice from another state last summer and it has become less stressful, but I won't make as much money. I've also realized that I'm damned good at it, and I don't mind what I do if I could make it less seasonal. Unless I can find a way to make it a steady year-round business, I'm looking for other businesses to start and run.

For the past 5 years I've hated what I do. I would give anything to get out of this and into something that is not so incredibly seasonal. I sold a portion of my practice from another state last summer and it has become less stressful, but I won't make as much money. I've also realized that I'm damned good at it, and I don't mind what I do if I could make it less seasonal. Unless I can find a way to make it a steady year-round business, I'm looking for other businesses to start and run.

Have you considered trying to play that to your favor?? Make a TON in 4 months and relax from may to November?

I know a bunch of guys who bill out $200 to 250K in 4 months and about 50K the rest of the year.

Im in a situation similar and I literally dont work Fridays after 4/16 and this year Thursdays and Fridays.

I just can't seem to make enough from Jan-April to make it through the other 8 months. I'm burnt out and just can't stomach working 80 hour weeks anymore. I've thought about that idea but mentally, just can't get there. The stress of tax season leaves me hating my profession and I have no motivation to do anything in the off-months. Maybe I need to start cultivating only high-margin clients so I can do that.

Have you considered trying to play that to your favor?? Make a TON in 4 months and relax from may to November?

I know a bunch of guys who bill out $200 to 250K in 4 months and about 50K the rest of the year.

Im in a situation similar and I literally dont work Fridays after 4/16 and this year Thursdays and Fridays.

smtcpa, What is your opinion of extensions? This is one tool to make it a little less seasonal.

I'm with smtcpa on this. I love extensions, but my clients don't. I am tired of my work being shoved into basically two months. I am worn out. A family member has to have open heart surgery tomorrow, so that is adding to the stress level, as I will have to miss work for that.
The past few years have gotten worse. It seems that everyone is getting 1099's and K-1's later and later. A lot of my clients are not receiving 1099's until around March 15. I think individuals should just be given a deadline of October 15, period. That would give us a good steady income for 9 1/2 months, without stressing out so much!

Seaside, The deadline is October 15th. The April 15th date is just a preliminary checkpoint. You need to do enough prior to 4/15 to estimate the balance due and provide at vouchers for the next year.

Last year, we decided this is nuts! There is too much work to do by 3/15 and 4/15. I tell my construction clients, imagine if all of your jobs for the year had to be completed by 4/15, but you could not order your materials from your suppliers until 1/1, and they could not order from their manufacturers until 1/1.

We have always been a no-extension company. But we could see the burn-out in our staff and the owners, like me, are only getting older. This is unsustainable.

We are now transitioning into aggressively promoting (pushing) extensions on our clients. It's all about the message and debunking the superstitions.

We take pride in delivering timely, quality work. But when time and quality become competing goals, we will always choose quality over time. This is especially true for the artificial due dates of 3/15 & 4/15. If the client prefers time over quality, then they are not a good fit for us. Goodbye!

No the deadline is not October 15th. The "extended" deadline is October 15, and the majority of my clients do not want extensions. The ones I extend are worked up properly for estimates and balances owed. But most people do not want this. If they just said tax returns (and payment) are due October 15 with no extension required, problem solved! I know this will never happen due to the budget, etc., but something has got to give.

Seaside, You are a professional. You are not their gardener (no offense, gardeners). Yes, the client pays you. But you also give up part of your time, part of your life for them. You get to call some of the terms of the engagement.

How are you aggressively promoting extensions and getting the clients to go along with it? I'm all for this. Do you tell them upfront any tax return info that comes in after a certain will be extended?

We have a cutoff date that is in our engagement letter.

smtcpa, What is your opinion of extensions? This is one tool to make it a little less seasonal.

I love extensions but, like seaside, most clients don't. I have toyed around with seasonal pricing like the airlines do. For example, 50% premium if they have to have it done by 3/15 or 4/15, normal pricing or even discounted pricing the rest of the year. I have also toyed with the idea of offering free tax planning or a projection (to a limited extent) in exchange for handling the returns after 5/1. The idea would be that we meet with them between October and December, provide final current year estimates and next year estimates, and tell them to contact us after 5/1 unless a dramatic change in income occurs. That way I spread the work out and make great money for busting my ass during tax season with the premium pricing.

I think this is a good idea; I've just been too burnt out after 4/15 to care about it, but it sure sounds great in the midst of tax season.

Like I said, we are transitioning into pushing extensions. We are still refining the message. Each client is different and gets their own separate conversation. We will work on one client at a time. The first year, it's hard. The second year, it's a little easier. The third year, it's assumed. But the trend is there. More and more of our clients are going on extension and becoming OK with it.

For new clients, we tell them that they will very likely go on extension. If they don't, then that's fine. But if they do, they have already agreed to the terms.

A wholesale rule such as a cutoff date is fine. However, this just provides you with an excuse for 'penalizing' them with an extension. It also sets you up for the "Why am I going on extension? I got my stuff to you on time." lose-lose discussion.

We all essentially have the same 2x2 matrix of clients. Easy / Complex. Organized / Not Organized. The Easy & Organized do not go on extension. The Complex & Not Organized do go on extension or disengaged.

However, the Complex & Organized should also go on extension. These folks need our care and attention, i.e. time. They need to understand their situation is unique and we want to do quality work for them. If they appreciate this, then all is good. If they don't then they really were not a good client for you in the first place.

We have a cutoff date that is in our engagement letter.

May I ask what your cutoff dates are? I was thinking of using Feb 28th and Mar 31st. But that may not even be enough time to finish the work that was brought in.

I also try to push for extensions. I tell them I extend my corporate and personal every year and I've never had a problem.

I totally agree with Wiles. Completing the last 15% of the return takes way more than 15% of the total time. I was having trouble getting one client last year to relax about this. Then, on his draft return, I missed a small estimated tax payment on a nonresident return. I said, that is why we are extending. I am tired, and I don't want to complete your return when I am at less than my very best. Then he understood.

So just explain it. Maybe in the organizer. You don't want to issue a return that was prepared when you were at less than 100%. Tax season is long, the Code is 75,000 pages, and anyone who doesn't have his/her information in by 3/15 should be prepared to go on extension. I appreciate this relationship, and thank you for your understanding....

I have a very limited number of clients that are adamant about NO EXTENSIONS. That doesn't preclude getting work done before 3/15 and 4/15, but if they are paranoid about extensions AND do not represent a significant revenue, then I make no effort to retain them. Starting about March 20th (no specific date-changes every year depending on what has come in thus far), (since it is just me, myself, and I doing the work) I tell them upfront that if the extension is anathema to them, then maybe my office is not a good fit for them. My business clients don't seem to be weirded out by extensions. Which is good, because I usually enjoy that work. I have a high retention rate, but have lost some new business because of it. I hope that my "personal touch" with each client helps in the long run, as I try to do much more than just "run the numbers" onto the form.

I also NEVER prepare a return while someone waits. That just isn't my business model.

I have a cut-off date in my engagement letter this year of March 26, but it changes each year. I basically state that anything received after this date will probably have to be extended. I think that is why I have so many coming in right now. I never prepare returns while someone waits either. Right now, I'm backed up 1-2 weeks.

Seaside, Do you see the difference between your message to clients about extensions and Joan's?

I like getting paid time and a half for part time work that's usually pretty easy....but "If I had a million dollars...."