Homeostatic plasticity plays a key role in stabilizing neural network activity. But what is its role in neural information processing? We showed analytically how homeostasis changes collective dynamics and consequently information flow - depending on the input to the network. We then studied how input and homeostasis on a recurrent network of LIF neurons impacts information flow and task performance. We showed how we can tune the working point of the network, and found that, contrary to previous assumptions, there is not one optimal working point for a family of tasks, but each task may require its own working point.