I personally do not like to just wait for the annual audit as I find there is another small trick that can be done that helps make sure that the broker's record and our accounting records kept in bivio are in agreement. Stock sales are often the point in time when discrepancies between the broker and our bivio records can creep in. Therefor, whenever the club does a sale, which for most clubs is not something that happens a lot, I go onto the broker's site within the week following a sale and run a Realized Gain/Loss Report for the year (or a Year-To-Date Tax Activity report). I then compare this to bivio's Capital Gains and Losses report. If there are discrepancies between these reports on the short and long term gains it most likely came with the last sale.

For instance yesterday we sold some shares in a stock that we had bought multiple lots on different dates. On the broker's website we chose to sell the most current lots. Bivio does not receive information from the broker on which particular lots are sold and always assumes on account sync that FIFO (First In First Out) applies and so sells the oldest shares. So when I compared the reports today there was a big difference on the gain loss reports between the broker and bivio. This reminded me that I needed to go into the bivio records and adjust what shares were actually sold to match what was done at the broker. Once this was done ( a two minute job) the gain/loss reports between bivio and broker once again matched to the penny. If you wait to catch these little things until an annual audit it some times can take more time to remember what happened and why. If you are like me, your short term memory is getting shorter all the time.

If you do not know how to identify which lots are sold go to bivio help and find the entry for "Lot Identification".

I hope this little trick helps make your Annual Club Audit more of an excuse to Party than to Panic.

Cheers,

Paul

Peter Dunkelberger

On Wed, Apr 25, 2018 at 9:33 AM, Paul Madison via bivio.com <user*31595900001@bivio.com> wrote:

Bivio does a great job of reminding us to do an annual audit, something that is absolutely mandatory after all an investment club is a partnership which is a business entity.

I personally do not like to just wait for the annual audit as I find there is another small trick that can be done that helps make sure that the broker's record and our accounting records kept in bivio are in agreement. Stock sales are often the point in time when discrepancies between the broker and our bivio records can creep in. Therefor, whenever the club does a sale, which for most clubs is not something that happens a lot, I go onto the broker's site within the week following a sale and run a Realized Gain/Loss Report for the year (or a Year-To-Date Tax Activity report). I then compare this to bivio's Capital Gains and Losses report. If there are discrepancies between these reports on the short and long term gains it most likely came with the last sale.

For instance yesterday we sold some shares in a stock that we had bought multiple lots on different dates. On the broker's website we chose to sell the most current lots. Bivio does not receive information from the broker on which particular lots are sold and always assumes on account sync that FIFO (First In First Out) applies and so sells the oldest shares. So when I compared the reports today there was a big difference on the gain loss reports between the broker and bivio. This reminded me that I needed to go into the bivio records and adjust what shares were actually sold to match what was done at the broker. Once this was done ( a two minute job) the gain/loss reports between bivio and broker once again matched to the penny. If you wait to catch these little things until an annual audit it some times can take more time to remember what happened and why. If you are like me, your short term memory is getting shorter all the time.

If you do not know how to identify which lots are sold go to bivio help and find the entry for "Lot Identification".

I hope this little trick helps make your Annual Club Audit more of an excuse to Party than to Panic.

Cheers,

Paul