When your business grows as a content creator, one of the most common ways of outsourcing is by hiring a VA or virtual assistant. Virtual assistants are great when you have multiple tasks that you need just a little help with. But, how do you pay your VA?
Most virtual assistants will have a preferred way to get paid. Depending on whether they’re hourly or on retainer will determine how you’re billed. Some virtual assistants work per project and will bill before the project starts based on what tasks you’ve given them or expect to be done.
The tricky part comes when choosing which platforms you’re paying your VA through and how you’re tracking your expenses. These records are essential for tax season when you want to report and write off your expenses.
Let’s take a look at what (and where) a virtual assistant is and appropriate ways to pay them –
A virtual assistant is a business assistant that assists your business virtually. They typically work as an independent contractor or through an agency. Most virtual assistants will have an area they specialize in, such as content management, graphic design, or administrative support.
As virtual assistants only work virtually, you can hire a virtual assistant from nearly anywhere. You can hire a VA from the US, Canada, the UK, and even the Philippines. Their location typically impacts their rate, but you can expect to pay anywhere from $12-$42 per hour depending on their experience.
Paying your virtual assistant is easy – it’s keeping your records detailed and organized along with how you’re paying your VA that can leave you asking questions.
When you’re paying a subcontractor, in this case, a virtual assistant, you want to keep a record of the general tasks and projects they’ve performed work on. For example, if they’re charging you hourly, ask for an invoice that details the project and general tasks completed during that hour. This will not only allow you to keep track of how much you’ve spent, but also which projects you’ve spent it on. Your invoice and receipt after payment will serve as proof to the IRS that this charge was associated with your business as a content creator.
We highly recommend that you use a bookkeeping and accounting program, such as Quickbooks, to track your transactions.
Paying your virtual assistant should always be done through secure payment processors – particularly when paying overseas. Never pay through a third party that is unrelated to your business, like your personal Paypal (Paypal Friends & Family) or an app like Cashapp or Venmo.
While more options are now available, like Venmo for business, opt for an option that allows you to pay through your business bank account. A business bank account is typically free to set up and can be done online.
If you do not receive an invoice or receipt, request one for your personal records as mentioned above. If you begin managing a team of contractors or subcontractors, you can move to a payment platform of your choice like Gusto.If you’re still unsure how to pay your contractors and subcontractors or if you’re ready to hire a virtual assistant for your content creation, reach out to the ModVentures team today for a consultation on how to keep your business finances organized and determine when you’re ready to outsource!