A home office is the work reality
for many CPA consultants and tax preparers. It beckons with the promise of an
easy commute, and the comfort of working in your pajamas. It provides the
flexibility of working when you want to. It can also save thousands of dollars
that would otherwise be spent on rent. What’s not to love?
Well, as tax preparer Joyce Linzy
has learned the hard way, a home office can also be a liability. To recap the
Tax Court decision in Linzy v. Commissioner, T.C. Memo
2013-219, Joyce Linzy felt harassed by client visits and calls at
her home office, rented a hotel room to get away during the busy season, and
attempted to deduct the cost of the hotel and travel as a business expense. The
court ruled against Linzy (see To Sleep, Perchance to Dream (of
Escaping Your Tax Clients).
As I read the case and the decision,
a question formed in my mind: “How does one end up in this situation?”
Your home is your castle. How does your home office become a place to run away
from? Here are three ideas to get you started on your way to a home office
nightmare, guaranteed and fast!
1. Let your clients know that it is
OK to stop by any time.
No one will want to work with you unless you make yourself available 24/7.
Besides, nothing is better for a professional image than a face to face meeting
with your CPA making breakfast while wearing the above-mentioned pajamas!
2. Set up a shared phone line for
your home and office.
This step works even better if you don’t have caller ID and are in the habit of
answering every phone call when it comes in.
3. Encourage family and friends to
interrupt your work any time for any reason.
An office without a door works best for this; however, you can accomplish the
same goal by consistently accepting interruptions, door notwithstanding.
Jokes aside, no one I know has ever
announced to their client roster that dropping by the house at 11 PM with a shoebox
of receipts is perfectly acceptable. In reality, the sacred boundary of your
home office is more likely to erode in small patches. Driven by a sincere
desire to help the clients and to provide the best customer service possible,
you might make an exception here and there. Trouble is, the other party
frequently walks away thinking that the exception is the normal way of doing
business with you.
Many professionals working from home
have become very adept at appearing to be patient while hating every minute of
it. While no one starts their home office adventure by declaring it a
free-for-all zone, few take the formal step of thinking through the things they
are willing to tolerate—or not—while working. I have found the list below to be
a helpful start, whether you are considering setting up a home work space,
working in one, or even working in a conventional office arrangement.
1. What are the hours when you are
available and open for business?
Choose the hours when you are most productive and able to focus on work. Setting up a phone call with a client at 7 AM or 8 PM may seem like a good idea in a pinch—until it sets an availability precedent that can be difficult to reverse. Outrageous requests are easy to keep at bay; it is the requests on the fringe of reasonable that erode the boundary.
Choose the hours when you are most productive and able to focus on work. Setting up a phone call with a client at 7 AM or 8 PM may seem like a good idea in a pinch—until it sets an availability precedent that can be difficult to reverse. Outrageous requests are easy to keep at bay; it is the requests on the fringe of reasonable that erode the boundary.
2. What is your policy on weekends
or after-hour availability?
Will you make yourself available, cheerfully and without a grudge, to clients on weekends or after hours? Will it be a one-time arrangement or an ongoing one? How will your clients know the difference?
Will you make yourself available, cheerfully and without a grudge, to clients on weekends or after hours? Will it be a one-time arrangement or an ongoing one? How will your clients know the difference?
3. How will you deal with the
inevitable interruptions?
Whether it is your child cruising in with the latest drawing, your pet barking while you are on a conference call, a friend stopping by to invite you out for lunch, or a client dropping by unannounced, it helps to have a plan. You are more likely to handle the interruption firmly, gently and with grace if you are prepared.
Whether it is your child cruising in with the latest drawing, your pet barking while you are on a conference call, a friend stopping by to invite you out for lunch, or a client dropping by unannounced, it helps to have a plan. You are more likely to handle the interruption firmly, gently and with grace if you are prepared.
4. What exemplifies an emergency
that requires your immediate and personal attention during your work hours?
Certain situations require an immediate and personal response: an injury to your child, a gas leak, a fire alarm. Be clear on what warrants an interruption, and help those around you get the same clarity.
Certain situations require an immediate and personal response: an injury to your child, a gas leak, a fire alarm. Be clear on what warrants an interruption, and help those around you get the same clarity.
5. What is your approach to office
organization and order?
If you expect clients to visit your home office, how will you keep it professional and presentable?
If you expect clients to visit your home office, how will you keep it professional and presentable?
Who is allowed to clean your office?
I encourage you to think through
those questions, and come up with your own. The answers will form the basis for
your rule book. No matter how good your rule book is, the only rules that
matter are the ones that are communicated and enforced. Make sure that your
clients understand your general policies. Putting them in a client agreement, or
creating a client handbook, is a great start. While creating a written contract
with your friends and loved ones may not be practical, be sure that everyone is
clear on the rules. Above all else, be prepared to defend your boundary from
all trespassers—gently, firmly, and consistently.
Setting boundaries can be a scary
proposition. It can feel as though you are putting up walls, digging a moat,
and setting up guns along the perimeter. However, it is possible to establish
home office boundaries gracefully; as with any skill, this one is mastered with
patient practice. It helps to remember that boundaries are not selfish. They
can help you create a space to deliver a valuable service, grow your practice,
and support yourself and your loved ones.
Circular 230 Disclosure
Pursuant to the requirements of the Internal Revenue Service Circular 230, we inform you that, to the extent any advice relating to a Federal tax issue is contained in this communication, including in any attachments, it was not written or intended to be used, and cannot be used, for the purpose of (a) avoiding any tax related penalties that may be imposed on you or any other person under the Internal Revenue Code, or (b) promoting, marketing or recommending to another person any transaction or matter addressed in this communication