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.
1 comment:
Great and very useful. Thanks for sharing.
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