Accountant for upstart CPO/CTA

Discussion in 'Professional Trading' started by RedEyeFly, Jun 14, 2010.

  1. We're forming a new CPO for futures and in need of a competent accounting firm. We're going to start with my seed capital and probably not accept outside funds for at least a year, but we want to start an audible performance trail and need an accounting group which has experience in this area as well as being willing to work with a small start up group. Any recommendations, contacts, or advice will be well received, PM me if you would like to solicit.

  2. Audits are expensive. Suggest not doing them until necessary. Just keep "audit-able" records and documents in the early going.
  3. Point well taken. Thank you. Do you think it would be reasonable - and/or closer to industry standard - to at least have a firm set everything up and then have them become more involved after the first outside client becomes involved?
  4. As audits are expensive, suggest not doing them until required by NFA regs or when demanded by significant clientele.

    Either the NFA will require you to be audited to "continue your present course", or significant clientele will demand to see audited results before investing. That's when you'll NEED audit. Many things can happen between start-up and then... no sense going to the expense and hassle of audit until necessary. Just keep proper records so that when it's time for audit you can comply. (It's only after certain thresholds that audits are required.... however, claims of performance must be AUDIT-ABLE at ALL times... whether formal audit is mandatory or not.)

    And of course, you can't "cherry pick" results... you must either "tell all" or "tell nothing"... (which is why very few CPO/CTAs advertise results). And if you have a break in performance results for any reason, you must start your track record over again. Everything before the break is null and void.
  5. What we're most visibly gearing for, as are most recently founded and legit business plans, is a presentation of our work so that outside views can understand our operation as stable, transparent, and capable operating in our market niche over a longer period of time.

    Even if we experience drawdowns right out of the gate, this is fine as we want our record to above all convey information about who we are and what we do, and what would be a reasonable set of expectations going forward.
  6. For CPO accounting you may wish to talk with Robert Green:

    He does a lot to advocate the interests of traders like us.

    I would consider him to be a very reputable accountant, and should be able to help you.

    GL with your new pool!!
  7. Nobody will give a crap about any of that... unless you have enticing returns with acceptably low drawdowns... that and confidence you won't run off with their money (or co-mingle and spend it illegally) is all OPM really cares about.
  8. They most certainly will, as have I when using CPOs and CTAs in the past. My principle concern with any group was to make sure that I'm not making a bankroll for some hotshot MBA student who may have some very fine ideas but has not offered our group any assurance of his methodology or personal robustness.
    What we do is very simple, and I want people to see that. That way we're on the same field.

    I've heard Green referenced before, I'll look them up. I'm hoping to find someone a bit more central to midwest/Chicagoland, but I'll talk to them.
  9. juanmon


    NAV consulting ( does all sort of accounting work for some of the largest CTA's / CPO's but will also service a startup for a reasonable price. they have been around for a long time as well. I believe they are in Chicago area.
  10. georgek


    My experience for audited financial statement is $4,500 with a small CPA firm. More formal CPA should charge more.
    #10     Jun 19, 2010