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© Copyright 2002 ICLUBcentral – All rights reserved
© Copyright 2002 ICLUBcentral – All rights reserved
© Copyright 2002 ICLUBcentral – All rights reserved
© Copyright 2002 ICLUBcentral – All rights reserved
© Copyright 2002 ICLUBcentral – All rights reserved
© Copyright 2002 ICLUBcentral – All rights reserved
© Copyright 2002 ICLUBcentral – All rights reserved
© Copyright 2002 ICLUBcentral – All rights reserved
© Copyright 2002 ICLUBcentral – All rights reserved
© Copyright 2002 ICLUBcentral – All rights reserved
© Copyright 2002 ICLUBcentral – All rights reserved
© Copyright 2002 ICLUBcentral – All rights reserved
© Copyright 2002 ICLUBcentral – All rights reserved
© Copyright 2002 ICLUBcentral – All rights reserved
© Copyright 2002 ICLUBcentral – All rights reserved
© Copyright 2002 ICLUBcentral – All rights reserved
© Copyright 2002 ICLUBcentral – All rights reserved
© Copyright 2002 ICLUBcentral – All rights reserved
© Copyright 2002 ICLUBcentral – All rights reserved
© Copyright 2002 ICLUBcentral – All rights reserved
© Copyright 2002 ICLUBcentral – All rights reserved
© Copyright 2002 ICLUBcentral – All rights reserved
© Copyright 2002 ICLUBcentral – All rights reserved
© Copyright 2002 ICLUBcentral – All rights reserved
© Copyright 2002 ICLUBcentral – All rights reserved
© Copyright 2002 ICLUBcentral – All rights reserved
© Copyright 2002 ICLUBcentral – All rights reserved
© Copyright 2002 ICLUBcentral – All rights reserved
© Copyright 2002 ICLUBcentral – All rights reserved
© Copyright 2002 ICLUBcentral – All rights reserved
© Copyright 2002 ICLUBcentral – All rights reserved
© Copyright 2002 ICLUBcentral – All rights reserved
© Copyright 2002 ICLUBcentral – All rights reserved
© Copyright 2002 ICLUBcentral – All rights reserved
© Copyright 2002 ICLUBcentral – All rights reserved
© Copyright 2002 ICLUBcentral – All rights reserved
© Copyright 2002 ICLUBcentral – All rights reserved
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© Copyright 2002 ICLUBcentral – All rights reserved
© Copyright 2002 ICLUBcentral – All rights reserved
© Copyright 2002 ICLUBcentral – All rights reserved
© Copyright 2002 ICLUBcentral – All rights reserved
© Copyright 2002 ICLUBcentral – All rights reserved
© Copyright 2002 ICLUBcentral – All rights reserved
© Copyright 2002 ICLUBcentral – All rights reserved
© Copyright 2002 ICLUBcentral – All rights reserved
© Copyright 2002 ICLUBcentral – All rights reserved
© Copyright 2002 ICLUBcentral – All rights reserved
© Copyright 2002 ICLUBcentral – All rights reserved
© Copyright 2002 ICLUBcentral – All rights reserved
© Copyright 2002 ICLUBcentral – All rights reserved
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© Copyright 2002 ICLUBcentral – All rights reserved

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Transcript

  • 1. Learning Club Accounting By Instructor Contact information BetterInvesting Event Location
  • 2. Who am I?
    • Your Name Why you are here today
  • 3. Welcome to Club Accounting
  • 4. NCA2 and CA3 Compared
    • Desktop Application
    • Windows 2000 and XP
    • All printing is built-in
    • Uses NOCA’s accounting engine
    • Wizards for common tasks
    • Automatic audit
    • Reconciliation
    • Export reports in Word, Excel, PDF
    • Web application
    • Windows 98, 2000, and XP
    • Required helper programs to print
    • Does not match NOCA
    • No guided help
    • Manual audit
    • No reconciliation
    • No exports, just cut and paste
    Club Accounting 3 Club Accounting 2
  • 5. Pricing
    • NOCA subscribers who own NCA2 also get the member upgrade price of $99.
    • Additional licenses, for a second treasurer, are $47
      • Covered under club’s current Maintenance contract
      • Purchase requires a Treasurer with CA3 in the club
    • Upgrades are from NCA2 to CA3. NCA1 customers purchase a new user copy.
    $219 $169 New User $149 $99 Upgrade Non-member Member
  • 6. Maintenance
    • Maintenance is REQUIRED
      • Customer with maintenance
        • Updates – all IRS Tax changes
        • Automatic stock quotes
        • Technical Support
        • Club Accounting Online
      • Customers without maintenance
        • No updates, stock quotes, or exports
        • Cannot save data
  • 7. Maintenance
    • New and Upgrade users get one (1) free year of Maintenance
    • This year is added to any existing accounting maintenance agreement
    • Maintenance is $49/year
  • 8. Congratulations!
    • You have been elected Treasurer of your investment club
  • 9. What will you use?
    • By Hand
    • Paid outside consultant
      • Bookkeeper
      • CPA
    • Using a Computer
      • Spreadsheet Program (Excel, Lotus, etc)
      • Club Accounting Software (CA3)
      • Online Club Accounting (NOCA)
  • 10. Club Accounting 3
  • 11. Requirements
    • Windows 2000, Windows XP
    • 600 MHz Processor
    • 128 MB RAM
    • 20 MB Drive Space
    • CD-ROM Drive
    • Internet
    • 800 x 600 screen
    • Windows XP
    • 1 GHz Processor
    • 256 MB RAM
    • 20 MB Drive Space
    • CD-ROM Drive
    • Internet
    • 1024 x 768 screen
    Minimum Recommended
  • 12. Requirements
    • Don’t meet the requirements? There’s a few options:
      • Upgrade
        • Windows 98 is 7 years old – an eternity
        • Windows XP is the proven standard
      • Go online
        • Online Club Accounting (www.naic-club.com)
        • Win95, Win98, WinME, Macintosh
  • 13.
    • Equal Shares
    • vs.
    • Valuation Units
  • 14. Equal Shares vs. Valuation Units
    • A club formed, intending to keep all members equal financial participants
    • Worthwhile objective
    • Bookkeeping is simpler
    • Everyone has an equal say in the operation of the club
    • There are drawbacks that may not be evident at first, but which become serious as the club matures
  • 15. What Equal Shares doesn’t cover
    • A member’s late payment
    • Financial emergencies
    • Increased or decreased individual payments
    • Prospective new members
  • 16. A member’s late payment
    • Some members pay on time. Some do not.
    • Is it fair?
    • Allowing the use of club money for an additional month (or more!)
    • Granting the same benefits as members who pay on time?
  • 17. Financial emergencies
    • Despite the best planning, emergencies happen
    • How does the partner remain equal?
    • If they cannot pay, should they leave the club?
  • 18. Increased or decreased individual payments
    • Some members can afford to pay more
    • Some members want to pay less
    • Life changes can force the decision
  • 19. Prospective New Members
    • Members paid $50/month for the last 5 years
    • Should new members pay in $3000 to get started?
      • It’s even more – your club has been successful
      • The member needs to pay for your earnings, too
    • Members can leave over time
      • Barriers to entry aren’t healthy
  • 20. Equal Shares vs. Valuation Units
    • Equal is not necessarily fair
    • Equality is difficult to maintain
    • Equal shares can limit club growth
    • … and it’s just not necessary!
    • The Club Accounting software provides a standardized solution, making Valuation Unit accounting relatively painless.
  • 21. So what is a Valuation Unit?
    • NCA uses Unit Value just like most Mutual Funds use Net Asset Value
    • It tracks of the value of 1 share or unit of the club
    • Unit Value is set arbitrarily at the start of the club, usually $10/unit
    • After the first valuation, the unit value changes based on the club’s transactions
  • 22. So what is a Valuation Unit?
    • Net Asset Value
    • ------------------------------- = Valuation ($)
    • Total Number of Units
    • Keeps track of ownership in club
    • Changes by the amount of money invested or withdrawn from the club
    • Value increases or decreases as the club’s investments increase or decrease
  • 23. Calculating Unit Value (An example)
    • Initially, units are set at $10/unit
      • 12 people contribute $30/person to buy stock X
      • Total = $360
      • Since Unit Value is $10 => 36 total shares in club
    • Then, the stock value goes up to $405
      • $405 / 36 shares = $11.25/unit
    • If each member contributes $30 next month
      • Each member buys $30/$11.25 = 2.67 shares more
      • There are now 68 shares in club (30+12*2.67)
  • 24. Calculating Unit Value
    • Every transaction is tracked this way:
      • Dividends
      • Buys
      • Sells
      • Withdrawals
      • Interest
      • Splits
    • This quickly becomes a lot of number crunching
      • … but that’s why you’ve got a computer!
  • 25.
    • Reviewing the Treasurer’s Duties
  • 26. Your work follows the calendar
    • Monthly
      • Deposits, valuations, print reports…
    • Yearly
      • Close the books
      • Allocate income and expenses
      • File Federal and State taxes
    • As needed
      • Spinoffs, mergers, splits, withdrawals...
  • 27. Monthly Tasks
    • Prepare for Meeting Wizard
      • Add new members
      • Member deposits
      • Enter new transactions
      • Reconcile books
      • Security valuations
      • Print reports
    • Wrap Up Meeting Wizard
      • Add new members
      • Member deposits
      • Enter new transactions
  • 28. Yearly Tasks
    • Year-end Tasks Wizard
      • Member deposits
      • Withdraw members
      • Enter final transactions
      • Reconcile accounts
      • Year-end valuation
      • Print Reports
    • Purchase Federal and State Tax Printer software
      • www.iclub.com
  • 29. Yearly Tasks
    • FILE WITH IRS
    • Use Federal and State Tax Printer software
    • Obtain latest version for tax year
    • Verify all member SSN’s & Club Tax I.D.
    • Keep a duplicate for club records
    • Prepare 3 copies of Schedule K-1 for each member
      • One copy of each to the IRS
      • One to each member
      • One of each for club records
  • 30. As needed
    • Members
      • Withdrawals
    • Securities
      • Buy / Sell
      • Dividends – Regular, Reinvested, or Money Market
      • Split / Merger / Spinoff
    • Cash
      • Income / Expense / Interest
      • Charges by Company / Foreign Tax Paid
      • Charitable Donations
      • Cash Transfer
  • 31.
    • Starting Your Investment Club
  • 32. Startup Methods
    • New Club
      • Starting from scratch
      • Use the New Club Wizard
    • Existing Club
      • Gather your paperwork OR export your old data
      • Use the New Club Wizard
  • 33. Go to Club Accounting
  • 34.
    • A Year in Your New Club
    • We’ll start in May, so we end with Tax Season
  • 35.
    • May
    • Pre-meeting wizard
    • Post-meeting wizard
    • Backup your club’s data
    May Go to Club Accounting
  • 36.
    • June
    • Pre-meeting wizard
    • Post-meeting wizard
    • Edit transactions
    • Backup club’s data
    Jun Go to Club Accounting
  • 37.
    • July
    • Pre-meeting wizard
    • Post-meeting wizard
    • Transfer money to broker
    • Buy a security
    • Backup club’s data
    Jul Go to Club Accounting
  • 38.
    • August
    • Pre-meeting wizard
    • Post-meeting wizard
    • Enter interest
    • Buy more stock
    • Enter merger
    • Backup club’s data
    Aug Go to Club Accounting
  • 39.
    • September
    • Pre-meeting wizard
    • Post-meeting wizard
    • Sell stock
    • Backup club’s data
    Sep Go to Club Accounting
  • 40.
    • October
    • Pre-meeting wizard
    • Post-meeting wizard
    • Enter stock split
    • Backup club’s data
    Oct Go to Club Accounting
  • 41.
    • November
    • Pre-meeting wizard
    • Post-meeting wizard
    • Withdraw member
    • Backup club’s data
    Nov Go to Club Accounting
  • 42.
    • December
    • Pre-meeting wizard
    • Post-meeting wizard
    • Purchase Club Accounting Federal and State Tax Printers
    • Backup club’s data
    • Don’t do your taxes yet…you don’t have all the paperwork!
    Dec Go to Club Accounting
  • 43.
    • January
    • Pre-meeting wizard
    • Post-meeting wizard
    • Remind the club when they’ll get their tax forms – in March
    • Backup club’s data
    Jan Go to Club Accounting
  • 44.
    • February
    • Pre-meeting wizard
    • Post-meeting wizard
    • Year-end wizard
    • Audit committee
    • Run the Tax Printer software
    • Distribute forms and reports to the club
    • Backup club’s data
    Feb Go to Club Accounting
  • 45.
    • March
    • Pre-meeting wizard
    • Post-meeting wizard
    • Backup club’s data
    • Deliver tax forms
    Mar Go to Club Accounting
  • 46.
    • April
    • Pre-meeting wizard
    • Post-meeting wizard
    • Make sure you’ve filed your taxes!
    • Backup club’s data
    Apr Go to Club Accounting
  • 47. Audit Committee
    • Verify CA entries to Broker & Bank Statements
    • Compare Broker/Bank Statements with Transactions (using the reconcile function)
      • 1099-B - Proceeds from Broker Transactions
      • 1099-Div - Dividends & Distributions
      • 1099-Int - Interest Income
      • 1099-Misc - Miscellaneous Income
      • 1099-OID - Original Issue Discount (Bonds)
      • Details of Buys / Sells / Mergers / Splits / Other
  • 48. Tax Printer
    • Pre-sales begin in December
    • Congress approves forms yearly
      • Approved as early as November, as late as the beginning of February
      • Software released AFTER forms approved
      • Watch the web site at www.iclub.com
  • 49. Federal Tax Information
    • 1-800-TAX-FORM (1-800-829-3676)
    • IRS Publications (www.irs.gov)
      • IRS Publication 541 (Partnerships)
      • IRS Publication 550 (Investment Income & Expense)
    • IRS instructions for Tax Forms
      • Federal form 1065 (Partnership Tax Return)
      • Form 1065 - Schedule D
      • Form 1065 - Schedule K
      • Form 1065 - Schedule K-1
  • 50. Filing with the IRS
    • Use Form 1065 / Schedule K-1
    • Obtain latest version for tax year
    • Verify all member SSN’s & Club Tax I.D.
    • Keep a duplicate for club records
    • Prepare 3 copies of Schedule K-1 for each member
      • One copy of each to the IRS
      • One to each member
      • One of each for club records
  • 51. Make it easy on yourself
    • Have an assistant Treasurer
    • Train the club members
    • Use the same valuation date every month
    • Limit the days members can deposit
    • Use consistent and fair rules for withdrawals
    • Use the wizards
  • 52. Where to get accounting help
    • BI Investment Club Accounting Handbook
    • Local Chapter contacts
    • BI Accounting web site
      • http://www.betterinvesting.org
    • Treasurers List
      • http://lists.better-investing.org
    • BI Wiki
      • http://biwiki.editme.com/
  • 53. Where to get software help
    • Software manual
      • http://www.iclub.com/support/downloads.asp
    • ICLUBcentral Technical Support
      • http://www.iclub.com/support
    • Treasurers List
      • http://lists.better-investing.org
    • BI Wiki
      • http://biwiki.editme.com/
    • Local Chapter contacts
      • http://www.betterinvesting.org
  • 54. Technical Support
    • ICLUBcentral’s Technical Support handles product-related questions
    • Must have two items
      • A licensed Club Accounting product
      • An active Maintenance Contract
        • Software updates
        • Online Stock Quotes
        • 12 months of Technical Support
  • 55. Technical Support
    • Web-based Support
      • www.iclub.com /support
    • Telephone Support
      • 617-661-2582
      • 9:30 AM to 6:00 PM Eastern Time
      • Monday through Friday
    • Renew your Maintenance Agreement
      • Call BI at 1-877-275-6242
  • 56. Thank You from Your BetterInvesting Chapter and ICLUBcentral for your Participation

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