Virtual Assistants are small business owners and independent contractors, which means we have the privilege of handling our own taxes. 

This may seem like a huge task, but if you're organized it will be a breeze. Many of these things can be done daily and will reduce your stress later!

Here are a few tax tips for Virtual Assistants:

Keep all of your receipts. When working from home, you will  definitly have a few deductions! Keep any receipts you have for business-related expenses.

Get everything in writing. Anything related to the exchange of money that is. Keep detailed records of all the money spent and earned through your business.

Use financial or accounting software to make life easier. Track all of your financial transactions related to business with software like QuickBooks, Peachtree, etc. I found a great FREE one I love! It's called Outrite, http://outright.com/. Organize your small business finances... all in one place! No more spreadsheets, piles of paper, and sticky notes everywhere.

Take advantage of home office tax deductions. Working from home lets you use a home office tax deduction. You may deduct things like office supplies. You may also be able to include:

• office equipment including computers, fax machines, etc.
• new office furniture
• office supplies, like paper, toner, etc.
• association dues / fees
• tax software
• mileage if visiting clients
• home office space if using as office only
• home office repairs and decorating
• advertising/marketing
• percentage of your utilities, mortgage or rent, cell phone and/or home phone
• web hosting
• payment to independent contractors
• credit card interests on business accounts
• travel expenses including meals and entertainment
• real estate taxes on business property
• accounting and legal fees
• and varous other expenses...

Set aside money. Virtual Assistants pay taxes at the end of the year. If you are not prepared for this expense you be not so happily surprised. Start now to set aside approximately twenty percent of your earnings in a separate account where you can't touch it. You will be happy you did!

Hire an accountant. It is usually a good idea to hire an accountant to help you with your taxes when you are self-employed. Even though this costs money, many VAs find that the money saved on deductions found by their accountant exceed the accountant's fee.

Or Use Tax Software like TurboTax or TaxAct. I use TurboTax Home and Business which walks you though step by step everything you need and keeps up with the tax laws. Be sure to purchase the upgraded version with home office deductions.

Consider taxes when setting your fees. When deciding upon the fees you will charge as a VA, don't forget that you will end up paying around one-third of the money in taxes. Always add on a little extra above what you want to keep for yourself. You could open a savings account and depositing 25 to 30% of each check or payment that you receive from a client to cover taxes. Not only will you ensure you have the money to pay your taxes at the end of the year, you will also be earning interest on this money instead of depositing it with the IRS for a year.

Whew! Lots to think about on this topic for sure! But this should help in getting your business tax ready!