Bookkeeping Tooles & Virtual Assistance Services Inc.

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Chase and other banks

Posted on January 24, 2015 at 9:15 AM Comments comments (0)

Have you tried to deposit cash into a bank account that is not yours? Have you been asked for ID or "are you a signor on this account? Couldn't make the deposit, could you? Well here is why.

Chase and other banks are sighting the Bank Secrecy Act for their changes to cash deposits. Per the regulation page about the Bank Secrecy Act, "The Financial Recordkeeping and Reporting of Currency and Foreign Transactions Act of 1970 (31 U.S.C. 5311 et seq.) is referred to as the Bank Secrecy Act (BSA). The purpose of the BSA is to require United States (U.S.) financial institutions to maintain appropriate records and file certain reports involving currency transactions and a financial institution’s customer relationships." 

The initial purpose of this Act was as stated by the Act itself, "The implementing regulations under the BSA were originally intended to aid investigations into an array of criminal activities, from income tax evasion to money laundering. In recent years, the reports and records prescribed by the BSA have also been utilized as tools for investigating individuals suspected of engaging in illegal drug and terrorist financing activities."

Under Section 326 of the USA PATRIOT Act, which is implemented by 31 CFR 103.121, requires banks, savings associations, credit unions, and certain non-federally regulated banks to implement a written Customer Identification Program (CIP) appropriate for its size and type of business. Although this provision pertained to opening a new account, it doesn't limit how the banks use this requirement. Under the Bank Secrecy Act banks are encouraged to develop policies in accordance to this act, the USA Patriot Act and the Anti-Money Laundering Compliance program. 

An article written by Matt Egan for, addresses JP Morgan Chase's change in their cash deposit policy. It also mentions other attacks on the banking industry that has fueled the necessity of banking deposit changes.  Review his article here


Direct Deposit Limits

Posted on December 24, 2014 at 8:00 AM Comments comments (0)

Per the website

In an effort to combat fraud and identity theft, new IRS procedures effective January 2015 will limit the number of refunds electronically deposited into a single financial account or pre-paid debit card to three.  The fourth and subsequent refunds automatically will convert to a paper refund check and be mailed to the taxpayer.

Taxpayers also will receive a notice informing them that the account has exceeded the direct deposit limits and that they will receive a paper refund check in approximately four weeks if there are no other issues with the return. Taxpayers can track their refunds at Where’s My Refund?

The vast majority of taxpayers will not be affected by this limitation, and we would encourage taxpayers and tax preparers to continue to use direct deposit. It is the fastest, safest way for taxpayers to receive refunds. The direct deposit limit will prevent criminals from easily obtaining multiple refunds. The limit applies to financial accounts, such as bank savings or checking accounts, and to prepaid, reloadable cards or debit cards.

However, the limitation may affect some taxpayers, such as families in which the parent’s and children’s refunds are deposited into a family-held bank account. Taxpayers in this situation should make other deposit arrangements or expect to receive paper refund checks.  The new limitation also will protect taxpayers from preparers who obtain payment for their tax preparation services by depositing part or all of their clients’ refunds into the preparers’ own bank accounts. The new direct deposit limits will help eliminate this type of abuse.

NOTE:  Direct deposit must only be made to accounts bearing the taxpayer’s name. Preparer fees cannot be recovered by using Form 8888 to split the refund or by preparers opening a joint bank account with taxpayers. These actions by preparers are subject to penalty under the Internal Revenue Code and to discipline under Treasury Circular 230.

Bookkeeper vs Acct. Paraprofessional

Posted on August 20, 2014 at 7:40 PM Comments comments (0)

According to many websites including, a bookkeeper is a person who records the day-to-day financial transactions of an organization. Day-to-day financial transactions generally consist of sales, accounts receivable, and cash receipts and purchases, accounts payable, and cash payments. The bookkeeper is responsible for ensuring all financial transactions are recorded in the correct journals, subsidiary ledgers, and general ledger.


An accounting paraprofessional is generally a person who may perform bookkeeping (write-up), accounting, payroll, or tax preparation services at an accounting firm under the direction of a Certified Public Accountant.

Both can be certified and both can be professional. Accounting Paraprofessional rates can be more expensive than bookkeepers. However Full-Charge Bookkeepers, in particular Certified Bookkeepers can do the same thing for less money. Our service works with CPA's, Forensic Accountants/CPAs and Public Accountants. 

We encourage you to do your homework and we also encourage you to inquire with us.