Financial and Legal Practices Flashcards
7 cards from real Virtual Assistant practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Financial and Legal Practices flashcards as text
A US VA expects to owe more than $1,000 in taxes for the year. What should they generally do?
Answer: Pay quarterly estimated taxes
Self-employed individuals usually must make quarterly estimated tax payments to avoid penalties.
Which of these is a common deductible business expense for a VA?
Answer: Software subscriptions used for client work
Tools and software used directly for the business are ordinary, necessary deductible expenses.
What is the benefit of a VA forming an LLC?
Answer: Limited personal liability protection
An LLC separates personal assets from business liabilities, offering legal protection.
A client disputes a charge claiming work was never delivered. What best supports the VA's position?
Answer: Documented deliverables and time logs
Clear records of completed work and time tracking provide evidence in a dispute.
Why might a VA carry professional liability (errors and omissions) insurance?
Answer: To cover claims of mistakes or negligence in their services
E&O insurance protects the VA against claims arising from errors in their professional work.
When setting rates, what should a VA factor in beyond just desired take-home pay?
Answer: Taxes, software costs, and unpaid admin time
Rates must cover self-employment taxes, business expenses, and non-billable hours to be sustainable.
What is a retainer agreement in VA work?
Answer: A prepaid block of hours or fixed monthly fee for ongoing service
A retainer reserves a set amount of the VA's time each period for a recurring fee.