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Tax Season

How to plan capacity 90 days before April 15.

The tax-season capacity-planning checklist we run with every CPA partner in January — PBC lists, return-volume modeling, reviewer balancing, and three steady metrics.

Tax Season8 min read

How to plan capacity 90 days before April 15.

The partners who get through tax season clean don't get there by working harder. They get there by making three small decisions in January that compound for ninety days.

This is the checklist we run with every firm that calls us between New Year's and the first week of February.

The three numbers that hold steady through tax season

You only need to defend three metrics. Everything else is noise.

  1. Returns-per-reviewer-per-month. Above 60 and review quality drops measurably. Pick your ceiling now.
  2. Days-to-draft from PBC complete. 5 working days for 1120-S; 3 for 1040. Track weekly.
  3. Open notices outstanding. Set a hard ceiling — 12, 20, whatever. Above that and the team's attention fragments.

Pin these three to the wall. Re-check them every Monday WIP.

PBC list construction — building a single source of truth

The biggest tax-season time sink is the back-and-forth: "Did we get the K-1?" "Where's the bank statement?" "Why is this prepayment showing twice?"

Fix it by building one PBC list per client, in one shared location, with three columns:

  • What we need
  • Who's responsible (client name, not "client")
  • Status (Outstanding / Partial / Complete / Skip)

Update it during the week. Send a single Friday digest to the client with everything outstanding. Don't send micro-requests.

Return-volume modeling by entity type

A typical small CPA firm has wildly uneven return mix. Map it now:

Entity typeAvg. hoursReviewer load
1040 individual4Junior + reviewer
1040 complex12Senior + partner
1065 partnership18Senior + reviewer
1120-S14Senior + reviewer
1041 fiduciary10Senior + partner

Build it for your mix in the first week of January. Now you can see the bottlenecks before they happen.

Reviewer-load balancing — the rule of 60 returns/reviewer/month

A US-trained reviewer can sustain ~60 reviews per month for 4–6 weeks. Above 60 you'll see corrections-per-return tick up by 15–25%. Below 40 you're under-utilizing.

Compute it: total returns ÷ available reviewer-months ÷ 60. If the ratio is > 1.0, you have a capacity gap. Close it before March 1.

The capacity-stretch options when February surprises arrive

When a partner falls sick or a client's books come in three weeks late, you have four options:

  1. Defer non-time-sensitive work. 990s, amended returns, advisory.
  2. Push extensions. A 6804 isn't a failure mode — it's a tool.
  3. Rebalance reviewer pods. Move a senior off bookkeeping for two weeks.
  4. Call your offshore partner. If you have one. (If you don't, January is when you should have signed.)

Communication cadence with clients during peak weeks

The mistake is going quieter during peak. Go louder. Send:

  • A Monday status email to every client with returns in progress. One paragraph. What's done, what's pending, when it'll be ready.
  • A single Friday digest of outstanding PBC items.
  • A same-week reply to every client question, even if the reply is "we're on it, draft Tuesday."

Cadence reduces the mental load on the partner. Silence raises it.

The post-season debrief — what to log before the memory fades

By April 18, every partner forgets the bottlenecks. Don't let them. The same Monday after the season ends, schedule a 90-minute debrief and log:

  • Which clients were the most expensive in time terms
  • Which workflow steps slipped the most
  • Which staff stepped up
  • Which software gap cost the most hours
  • Three things to change before next January

You'll thank yourself in October.

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