Entity Accounting for Trading Entities and
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
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
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
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
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
Entity Accounting: 6 months of service
Entity Accounting: 12 months of service
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
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
- 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
- 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.
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.
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 firstname.lastname@example.org
or call us
to discuss our entity accounting services for trader entities and management