Despite the widespread availability of relatively easy-to-use accounting software programs, entrepreneurial experts tell the Christian Science Monitor those who decide to do day trading for a living may want to work with an independent accounting and management firm to help get them moving in the right direction.
The source says even though do-it-yourself software programs can be relatively easy to work with once they are figured out, there is still a distinct learning curve as business owners get used to them.
"Do-it-yourself accounting tools may provide some assistance, but the entrepreneur will incur a learning curve and have to invest time in these sites when he should be investing time in developing the business," Vic Alexander, chief manager of a CPA firm, told the source.
In addition, Alexander says an accountant can be a valuable partner, helping traders choose the best business formation for their purposes, and set them up with bankers, attorneys or insurance agents they need to speak with. In addition, they can also set up performance metrics to help day traders stay on task, and assist with retirement planning and other aspects of their business.
CPAs and other accounting firms will also be up-to-date on any recent regulatory changes that may affect the tax breaks or obligations which a small day trading company might be impacted by. Keeping up with those changes can take even more time away from traders when they could be focusing on other things.
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