Important to keep control over bookkeeping

For obvious reasons, the tedious task of bookkeeping is one of the most commonly outsourced jobs for all small businesses, Flying Solo reports. However, outsourcing the process doesn't mean small business owners should start ignoring it.

According to the report, day trading companies that outsource their bookkeeping should still keep an eye on any assets or expenses along with overall management data.

The source says even though many traders started outsourcing in order to avoid constantly looking over their balance sheets, it may be a wise idea to look them over on a somewhat regular basis to make sure everything makes sense. If there are any question marks, the bookkeeper should be able to quickly explain them, or else raise questions about their abilities.

Flying Solo adds small business owners should also keep some level of control on other management data, such as profit figures or comparisons to any industry averages to see if there are any discrepancies.

The source adds business owners shouldn't be afraid to ask their bookkeeping firm for accounting tips relating to the business, since they are already paying the firm for their help in running the company.

For many traders, outsourcing bookkeeping may make the most sense, as relatively few may actually have an accounting background, and could make errors that hurt the company, says small business author Ruth King, who says small business owners' strengths are in the core of their companies.

DIY estate planning forms leave holes for many

With the continued growth of the internet over the past several years, a number of services offering do-it-yourself legal documents have popped up. However, Investor's Business Daily says while they may work for some people, those with more complex estate planning arrangements may put themselves in trouble by using these firms.

The main advantage of most of these sites is cost. Experts told the news source that those who use generic documents run the risk that something they need won't be included. That situation will only give traders a false sense of security and could end up costing their estate more money in the long run.

In addition, others say there may be issues if the generic language of the forms isn't specific enough to a certain situation. Some analysts said that those with more assets may find that the DIY route is insufficient.

"If your estate is larger than the estate-tax exclusion amount [$5 million this year and next], you may need help from an attorney," tax expert Mary Randolph told the paper. She added those concerned with estate tax planning may prefer specialized planning. "The more you need to discuss tax strategy, the less likely that do-it-yourself will be enough."

The source said among various other reasons experts cited as to why estate planning may be best left to professionals is if people divorce and remarry, have any ongoing needs for dependents or need to distinguish carefully between business and personal assets.

IRS Up's Mileage deductions

Well the IRS has cut us a bit of a break due to the higher gas prices. 4.5 cents to be exact - so now each business mile you drive is worth a 55.5 cent deduction as of July 1, 2011. Not a bad break for those of you small business owners. Remember - Document, Document, Document!

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Few Americans have put financial plan to paper

A recent survey finds that while many Americans feel it's important to have a financial plan in place to help manage their income, few have actually followed through on it.

A poll by the Certified Financial Planner Board of Standards found 86 percent of Americans felt everyone should have a financial plan, and 58 percent said they would personally feel more confident about their finances.

In addition, while 79 percent said they had a financial plan, most said that plan was only found inside their head, with 11 percent saying they just had notes.

"Creating and following through with a financial plan can be overwhelming for many people. Today's survey shows the importance of our efforts to educate consumers about the value of financial planning," said Eleanor Blayney, CFP Board's Consumer Advocate. "There are many different sources of advice, and consumers need to be aware of the breadth of options to identify the resource that best suits their individual needs."

Financial planning also goes well beyond the simple cost analysis day trading companies constantly do to know how much money they need to make in a given day to break even, as it can also be extended into estate planning.

Day traders may feel their estate will be managed according to their desires, but the lack of a legal document laying out their wishes means it may not be. Take the time to create a living trust to help ensure plans are followed while avoiding the costs of probate court.

Choosing the right tax preparer

One of the key parts of day trading for a living is keeping up to date on taxes. It can be a time-consuming and frustrating process for some traders who would prefer to spend more time trading and less time bookkeeping, leading many to outsource that job to an accounting firm.

However, Inc. magazine says it's important to take the time to carefully evaluate the company who will be preparing those taxes, since the fact that a person has the title of CPA doesn't mean they will be the best for a particular company.

The source says there are a number of different titles for tax preparers, such as CPA, tax attorneys, enrolled agents and others. While CPA may be the standard, experts told the publication that could just mean a particular firm is experienced with corporate accounting, and may not be the best fit.

The most critical factors to consider when choosing a firm to prepare a company's day trading taxes, Inc. reports, is that the firm is up-to-date on tax law changes and familiar with the industry.

"Ask yourself: Can I view this person as a partner in my business? Is it someone I am that comfortable with?" business coach Marla Tabaka told Inc.

Small business advisor June Walker also told the source many sole proprietorships and other companies generally "cheat themselves more than they cheat the government," and advises they take advantage of or be aware of all the deductions they may be eligible for.

Report: Consumers not focused on long-term financial goals

A recent survey finds many consumers and traders may not be on the same page as their financial advisers, and can be distracted from focusing on their long-term financial goals.

According to the Russell Investments Financial Professional Outlook survey, advisers reported their clients most often started conversations about government regulations, the volatile market or other global events which mainly affect short-term finances.

In addition, advisers reported they had to start the conversation about a number of different aspects of financial planing, including investment taxes and estate planning, showing a potential lack of interest by consumers.

"The adviser has a critical role to play when it comes to helping clients focus and avoid becoming distracted by short-term market moves and big news stories," said Kristin Gibson, director of strategic distribution partnerships for Russell Investments. "Investors are looking for a reality check on their current situation and direction as to what they need to do in the future."

Accounting for some of that disconnect, Russell analysts added some clients choose to do research about some financial products, such as living trusts, on their own. As a result, 90 percent of advisers surveyed said their clients had sent them media reports about financial issues.

Establishing an estate plan, such as a living trust, can be a prudent step for those day trading for a living. A living trust can lay out all of a person's wishes while also avoiding the potential costs and delays of dealing with probate courts.

Continued discussion about transactions tax

With a continued emphasis from lawmakers about reducing the federal budget deficit, some economists are suggesting that lawmakers impose a tax on each financial transaction as a way to raise funds and reduce market speculation.

In a column for the MetroWest Daily News, Martin Evans, a former professor at the Rotman School of Management, University of Toronto, says it may be possible to eliminate corporate income taxes and replace them with a stock transaction tax, which would be about 0.005 percent.

A recent estimate of the impact of the tax, Evans relays, suggested it could bring in $350 billion in revenues if trading activity continued at its current pace. However, the movement of many transactions overseas could cut that number in half.

Evans adds such a tax would also encourage long-term investing instead of daily market speculation, which he views as a positive for the economy, but would be a significant negative for day traders.

Several European leaders have already lent their support for a similar plan, called the "Robin Hood" or Tobin Tax, across the Atlantic, including France's Nicolas Sarkozy and Germany's Angela Merkel.

The idea behind the tax, which would create a significant obstacle for day trading companies, was proposed in 1978 by Nobel prize laureate James Tobin. Being taxed for each stock transaction would put a significant strain on traders, making it all the more important they stay on top of their accounting, tax preparation and daily costs.