All investment clubs must keep proper financial records. The club treasurer is responsible for keeping the books organized and accurate. However, this can be a rather complicated and time consuming task when there are many members in the club. That’s why investment club software is an essential tool that every club should have.
There are three main types of investment club software available – accounting, tax, and investing. Some software packages combine all three functions. Accounting club software makes it easy to manage member contributions and withdrawals, buying and selling of shares, distribution of dividend income and preparing tax returns. Since all club financial information is in one place, members can easily be updated on the club’s investments and their individual shareholdings. Specific reports and graphs can also be generated and printed.
As most investment clubs are formed as partnerships, they must file an annual tax return irrespective of whether they make a profit or not. Keeping financial records with a club accounting software ensures accurate reporting for tax purposes. Investment club tax software enables the treasurer to simply print federal tax forms for the club and for each member. Once the forms have been reviewed and signed, they can be sent off. There’s no need to fill in tax forms by hand, which can be tedious and difficult if the treasurer does not understand tax law. Investment club tax software is updated every year for changes in IRS tax forms so clubs can be assured that they are filing the correct forms.
Investing software is an essential tool for investment clubs and investors. It helps to analyze stocks, markets, company’s fundamentals, graphs and charts so you can make an informed decision about which stocks to invest. If you are a novice investor, investing software takes the mystery out of investing. It teaches how to invest by introducing time-tested methodologies that enable individuals and clubs to assess stocks right away. This type of software can provide interactions through the internet to give current market information as well as trends.
The 3 types of investment club software can be purchased individually or as a package. It may be cheaper to buy as a package. Then again, choose a software or package that is flexible and easy to use.
The benefits of investment club software far outweigh its cost. It saves time, frustrations and reduces human errors arising from making computations and entries by hand. It also eliminates the need to hire an accountant or tax professional, thus saving money for the club. Best of all, it keeps the club’s books organized.