VA Business Operations Flashcards

Why should a VA use a separate business bank account?

Answer: To cleanly separate business and personal finances

Separating accounts simplifies bookkeeping and tax reporting.

A client repeatedly pays invoices late. What contract clause helps prevent this?

Answer: A late-payment fee clause

Late fees incentivize clients to pay on time and protect cash flow.

What is the main benefit of requiring a deposit before starting a project?

Answer: Secures commitment and reduces risk

An upfront deposit confirms the client is serious and protects against non-payment.

Which metric best measures whether a VA business is profitable?

Answer: Net income after expenses

Profit is revenue minus all business expenses, not just gross income.

A VA wants to raise rates with existing clients. What is the most professional approach?

Answer: Give advance written notice with a clear effective date

Advance notice respects clients and gives them time to adjust budgets.

What is a key reason to maintain professional liability insurance as a VA?

Answer: Protection against claims of errors or negligence

Liability insurance covers financial risk if a client claims your work caused damages.

Which tool category helps a VA manage recurring client tasks and deadlines?

Answer: Project management software

Project management tools track tasks, due dates, and progress across clients.