Guide · 5 min read

    Bookkeeping for virtual assistants

    Retainers, hourly clients, software, and home office — clean books for VAs and OBMs.

    Why VA books get messy fast

    Five clients on five different platforms (Stripe, Wise, PayPal, direct deposit, check), recurring SaaS for each client, and a home office. Without simple tagging, you can't tell who's actually profitable.

    Tag by client: retainer hours · hourly overage · project work · pass-through software. End of month you'll know which clients to keep, raise, or fire.

    The 4-step VA system

    1. 1

      One business account, one card

      Route Stripe, Wise, PayPal, and direct deposits to one checking. One credit card for software so it auto-categorizes.

    2. 2

      Invoice with simple terms

      Net-7 for retainers, 50% upfront for projects. Tag each payment to client + service type. Cuts late payments and makes per-client revenue obvious.

    3. 3

      Track home office + utilities

      Sq ft method ($5/sq ft up to 300) or actual (% of rent, internet, electricity, renters insurance). Actual usually wins for most VAs.

    4. 4

      Quarterly tax habit

      25–30% to tax savings per payment. Pay April / June / Sept / Jan. SEP-IRA or Solo 401(k) on top.

    Deductible expenses for VAs

    Home office (sq ft or actual)
    Internet & phone (business %)
    Laptop, monitor, headphones
    Notion, ClickUp, Asana, Trello
    Slack, Loom, Calendly
    Canva, Adobe Express
    ChatGPT, Claude, Zapier
    Password managers (1Password)
    Bookkeeping software
    VPN & cybersecurity tools
    Business license
    Coworking memberships
    Courses & certifications
    Networking events & conferences
    Health insurance (self-employed)
    SEP-IRA / Solo 401(k)

    Books that handle the back-office for you

    SnapBooks tracks every retainer, software charge, and client payment automatically.

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    Tools for VAs

    Frequently asked questions

    Do I need a business license as a VA?+

    Most states/cities require a basic business license for any self-employed work, even fully remote. Cost is usually $50–$200/year and 100% deductible.

    How do I handle international clients?+

    Income from international clients is still US-taxable. If they pay via Wise/PayPal/Stripe, just track in USD. No special form needed unless they request a W-8.

    Are software subscriptions deductible?+

    100% — Notion, Slack, Loom, ClickUp, Calendly, Canva, ChatGPT, Zapier, password managers. If you use it for client work, it's deductible.

    What about coworking memberships?+

    Fully deductible. Coworking, day passes, and even Starbucks if it's clearly work-related (occasionally, not daily lunch).

    Should I form an LLC?+

    Not required, but worth it once you cross ~$40k/year for liability protection and to look more professional on contracts. Tax-wise it's neutral until ~$60–80k net.