Investment Club Accounting is Different - Learning about bivio
Laurie Frederiksen on
Why is keeping records for your investment club different than keeping personal investment records or records for other groups?
Because your investment club is a partnership. Your club has multiple owners.
You don't just have to keep track of your investments, you need to keep track of each persons ownership percentage.
To do that, you need accurate club valuations.
The balances shown for each account on your Accounting>Accounts page and the number of shares of each stock on the Accounting>Investments page need to agree with information shown by your financial institutions.
In addition, the stock valuation date on the Acounting>Investments page needs to be up to date for each stock.
A quick check of these things each month will help you ensure you're making correct member payment and withdrawal entries. It's an important part of keeping your member account records accurate so each persons ownership percentage is tracked correctly.