TRADERS
Entity Accounting for Trading Entities and Management Companies

We have highly trained accountants, managed by Darren Neuschwander CPA and Adam Manning CPA, who specialize in full general-ledger accounting services for trading entities and management companies.

If you operate a hedge fund, please see our separate investor-level accounting services in our investment management section.

If you are a securities trader, we highly recommend our TradeLog® for GreenTraderTax software. We offer TradeLog Accounting Services separately, or as part of this full general-ledger accounting service with a lower price.

Why you should consider this service
As pointed out in our trader entity formation section, Webinars and trader tax center entity page, there are added tax breaks for entities vs. being a sole proprietor unincorporated retail trader. An entity looks better to the IRS on trader tax status qualification issues, unlocks AGI tax deductions for retirement plans and health insurance premiums and provides more flexibility on late-year Section 475 MTM elections.

Designing and forming your entity right is a challenge and that’s why it’s best to use our entity formation service. Many clients don't carry through on our strategies when they try to do the entity accounting on their own. Good entity accounting services are a wise bridge between our entity formation and trader tax preparation services. It can make a big difference in the overall outcome.

Here's how our service works
At the end of our entity formation process, speak with our entity accounting team manager. We recommend getting started with our New Account Set-Up service below, and continuing with Entity Accounting Monthly Services thereafter. Choose either the 6- or 12-month package depending on the time of year.

We offer these entity accounting services in a cost-effective package including our entity formation services, and even tax preparation services too.

Benefits of using our service from the start
The first important aspect of tax savings is accounting for start-up costs (Section 195), organization costs (Section 248), hardware and software for depreciation, initial capital contributions, debt, home office deductions and more. Getting off on the wrong foot can jeopardize many good tax deductions.

It’s wise to have a separate bank account for your trader entity or management company and to keep the entity business separate from your personal accounting. How you handle reimbursement or capitalization of the above items is key too.

Accounting Services for Trader Entities and Management Companies:

Entity Accounting: New Account Set Up $110

Entity Accounting: 6 months of service $650

Entity Accounting: 12 months of service $1,100

Each month or quarter we'll do the following:

• Reconcile your bank and/or credit card account(s)
• Generate an income statement
• Generate a balance sheet
• These tasks form the solid foundation of your small business accounting system.

Bank and Credit Card Reconciliation

This allows us to keep your bank account, accounting, and taxes up-to-date.

Having us reconcile your account each month allows you to:

• Identify lost checks, lost deposits and unauthorized wire transactions.
• Detect and prevent excess/unjustified bank charges and ensures transactions are posted correctly by your bank.
• Know how your business is doing. You can't really know unless all accounts are reconciled and properly accounted for on your financial statement.
• Manage cash more effectively. Proper management not only saves money, but it also makes money for you.
• Protect yourself. By promptly objecting to your bank about any unauthorized, fraudulent or forged checks presented to your bank and paid by that bank, you can relieve your agency of responsibility and transfer the risk to the bank. This reason to reconcile alone should be enough. Crime exists.
• Sleep better. You will sleep peacefully knowing your bank accounts are reconciled, in balance and that all escrow funds, accounts, checks and disbursed funds are properly accounted for.

Income Statement

An income statement, otherwise known as a profit and loss statement, adds revenues and subtracts expenses to come up with a profit or loss for the period.

An income statement allows you to:

• Track revenues and expenses so that you can determine the operating performance of your business.
• Determine what areas of your business are overbudget or underbudget.
• Identify the cause of unexpected expenditures.
• Determine your income tax liability.

Balance Sheet

A balance sheetprovides a snapshot of your business' financial condition at a specific moment in time.

Balance sheets, along with income statements, are the most basic elements in providing financial reporting to potential lenders such as banks.

Contact us at accounting@greencompany.com or call us to discuss our entity accounting services for trader entities and management companies.