So your day trading business is taking off like a rocket, profits are landing in your account daily, and life is extremely good. Everything is perfect.
Then, the thought suddenly hits you…”HOLY C**P! I need an accountant.”
The last thing you want is to do is avoid paying the tax man. If you do, then your huge day trading profits can quickly become a small chunk of change and the resulting legal problems can drain you of your valuable time and energy.
Getting a good accountant is essential for any day trading business. Not only will they get all of your finances in order, so you can stay out of trouble, but they will also end up saving you money in the long run as they work out ways to reduce your tax bill.
You don’t have to choose the first accountant that you come across. In fact, it can be very beneficial to shop around until you find an accountant that seems to be knowledgeable about the day trading business, and has also has experience preparing accounts for other day traders.
If you are having trouble finding an accountant in your local area, then it is a good idea to talk to other day traders about who they use. This kind of insider information can be invaluable, and can lead to finding a great accountant for your day trading business.
Small or Large?
There are many different types of accounting firms out there, and which one you choose will depend on your own specific needs.
For example, there are many large accounting firms with hundreds of staff eager to take your business. While there are advantages to going with a larger firm, there are also a lot of downsides.
One of the major downsides is that it’s hard to build up a solid relationship with any one accountant. You might find that everytime you phone them, you end up talking to a different person.
On the other hand, choosing a small accounting firm is probably the best way to go. Not only will you be able to build a relationship with a small team of accountants, but as time goes by they will also become much more knowledgeable about your day trading business. This means they get better at saving you more money with each passing year.
Be clear on the fees
Before you hire any accountant for your day trading business, it’s very important to be perfectly clear on the fees you’ll be charged.
The best way to do this is to have a chat with an accountant before you hire them and get them to put all charges down in writing. This makes everything clear from the start, so you won’t have any nasty surprises down the line.
For example, there are some accounting firms that charge for making corrections to documents, even if they made the mistake!
Save your day trading business from needless accounting fees, by fully understanding fees and charges from the beginning.