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Frequently Asked Questions

Regarding IAC Professionals:

Regarding Accounting, Finance or Business Management:

I am located in Australia (or Canada, or the U.K., or Japan). Can you help me?

Yes, we can! We provide services worldwide. The wonderful thing about a virtual world is that we can communicate with you whether you are next door or 3,000 miles away.

We communicate with our clients via telephone, fax, email, web conferencing, postal mail, expedited shipping - and even sometimes in person.

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What are your rates? Do you charge by the hour?

We have hourly rates, project rates and retainer rates – whatever suits your needs best. Our prices are among the most reasonable in the industry.

Our rates depend on a variety of factors. We base our rates on the number of staff we need for your project, the required staff skill level, the length of time, the complexity of task and any advanced materials we need to complete your project.

Please feel free to contact us for a customized estimate for your project.

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What is a Virtual Assistant, and do I need one?

A Virtual Assistant (VA) is an independent contractor who helps take care of the administrative and technical side of your business or personal life. A VA assists you or your business on a contractual basis from a remote location.

Almost anyone can benefit from a VA! Please contact us and we'll help you determine if a VA is the right choice for your needs.

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What is the difference between a Bookkeeper and an Accountant? Which do I need?

A bookkeeper is a person who performs one or many duties in the bookkeeping cycle.

In large companies, these duties are broken down into departments such as Accounts Receivable, Accounts Payable or Payroll. In small companies, a bookkeeper may perform the entire bookkeeping process or might just enter the data.

The people who perform these steps are often referred to as clerks, but they are, indeed, bookkeepers. They're "keeping the books" for a company.

A full-charge bookkeeper is someone who can do it all – from compiling the data into the General Ledger to preparing financial statements.

Someone has to set up the bookkeeping system, monitor it, and interpret the results. This process is accounting and is much less mechanical and more subjective.

Accounting begins with a system that benefits the business by capturing the financial information in a useful manner without being overly complex for the bookkeeper.

Once the system is in place, the accountant monitors the system to ensure it's doing what it's suppose to do. On a monthly basis, the accountant presents financial statements to management so that management can make informed decisions.

Accountants typically supervise bookkeepers. In a large corporation, there may be several accountants. One accountant designated as the Controller oversees the entire accounting and bookkeeping system.

Your business or company might need a bookkeeper, an accountant, or both. Your needs depend on the tasks to be performed, the amount of monthly transactions that occur and the size of your company.

Please feel free to contact us, and we'll analyze your needs to let you know the best choice for your business.

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I heard you have multiple newsletters, where can I subscribe?

We recently converted our 4 individual newsletters into one very valuable newsletter titled Productive Solutions. Existing subscribers to any of our previous newsletters were subscribed automatically and just had to confirm subscription. If you are not receiving the newsletter or are a new subscriber and would like to receive your weekly edition of Productive Solutions, please do so: Subscribe here!

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I am trying to register for your Client Log-In. Where can I do that?

We are happy to announce our new release of Client Enabled Enrollment. Please click the tab at the top of this page (and any page on the site) that says Client Enrollment to be taken to our enrollment form or you can click here.

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What is the difference between depreciation and an expense?

The Tax Code lets you deduct a yearly portion of a cost (or other basis of capital assets) used throughout the year, that is depreciation. Depreciation applies to Assets. An asset is an item purchased for use by the company that has a life of more than a year. Example: Computer, Printers, Cars.

Expenses are costs associated with your business such as Rent, Utilities and Insurance.

In some cases an asset is considered an expense rather than the asset and that is normally based on its price.

For example, a stapler has a life of more than one year and therefore an asset to your company, but it costs so little, that better to record it as an expense, such as office supplies.

Most companies place a threshold on their purchases. For example, one client, their threshold is $250.00 Any asset that cost under $250 is expensed and any asset costing over $250.00 is depreciated.

How long should I depreciate an asset?

Depreciation of an asset begins when an asset is put into service. The depreciation period ends when:

  • The asset is removed from service
  • Its cost has been redeemed
  • The asset has been subsequently sold or disposed of
  • The Government imposed limits have been reached (Example: You can only depreciate software over a three year period).

What is the Modified Accelerated Cost Recovery System (MACRS)?

The Modified Accelerated Cost Recovery System (or MACRS) is required for some property but is elective for others.

Calculated by the General Depreciation System (GDS) or by the Alternative Depreciation System (ADS), the MACRS is a form of accelerated depreciation. More depreciation expense is claimed early in the depreciable life, and less is claimed later.

Here are some common assets and their approved depreciation schedule:

  • Computer Equipment: Computers fall under the 5-year MACRS class. A 60-month depreciable life is spread across 6 fiscal years (usually at the midpoint of the first year).

  • Computer Software: Software is considered an intangible asset, and, as a general rule, is exempt from the 15-year amortization. Software usually depreciates using the straight-line method with a useful life of 36 months, beginning on the first day of the month that it's placed into service.

  • Office Furniture: Furniture falls into the 7-year MACRS class. This is considered property with a class life of 10 years or more but less than 16 years and includes office furniture, fixtures, and equipment.

  • Vehicles: Automobiles and general-purpose trucks fall under the 5-year MACRS class. MACRS depreciation deductions and the expense election are limited for "luxury" business autos and other "listed property." Property may be depreciated under the accelerated MACRS rates and is eligible special first-year depreciation allowance only if it is used for business more than 50%.

    • Depreciation of passenger autos ("luxury autos") is subject to maximum ceiling limitations. If a "luxury" auto is leased for a business, it must be added into income as an "inclusion amount".

  • Electronics: Equipment such as telephones, fax machines, televisions, etc. fall under the 5-year MACRS class.

  • Production Equipment: This property doesn't have a specifically assigned class, so it is assigned to the 7-year MACRS class.

This guide is just a reference. Please consult your tax advisor for the most complete tax information.

I would like to begin a Section 125 Plan, does IAC Professionals help with that?

We most certainly can. Based on this frequent request we have partnered with the leading Section 125 Plan Administrator. You can enroll and begin your Section 125 Plan by clicking here!