Can a club put BetterInvesting membership expenses in the club account or should those be paid outside the club accounting? Our club would like every member to be able to create SSG reports for evaluating companies. The cost of the BetterInvesting Core Plus Membership is $130 per year. Could we enter that expense as "Allocate per Partnership Exception" for the BetterInvesting Core Plus Membership? What would you do with families with 2 members that only need the one membership to use the service? Look for any help on how we can roll those expenses into the club and make is so every member will be required to have the tool to create SSG's as a club member.
Bill W.
William Peterson on
Betterinvesting memberships for individuals (including
couples) are individual expenses, not club expenses. They
should be paid for by each individual (or couple) outside of
club accounting. Only the membership of the club itself is a
club expense.
Trying to pay for individual memberships through the club
can result in individuals receiving credit for a portion of
someone else's membership cost when expenses are allocated
at the end of the year. Also, some members might pay for
their memberships via another club or might choose a
different level of membership than the other members.
Processing different membership costs through club
accounting will result in inequities among the various
members when expenses are allocated.
Remember, club expenses are allocated to members (partners)
according to their relative investment in the club, not by
absolute amounts. If all individual memberships are paid
through the club, then a member with a 50% ownership in the
club will receive 50% of the total expense, while a member
owning only 1% will receive only 1% of the total expense.
The best way to handle both club and individual memberships
is to pay for the club membership from the club's funds and
have each member provide a check to cover their own
membership, if the member is not paying for their membership
through another club. All of this can be accomplished at the
time that the club's membership is renewed (using the paper
form that BetterInvesting supplies for this purpose).
Donna OConnnell on
There is a way in Bivio to have each member charged the same amount. It is an exception.
Betterinvesting memberships for individuals (including
couples) are individual expenses, not club expenses. They
should be paid for by each individual (or couple) outside of
club accounting. Only the membership of the club itself is a
club expense.
Trying to pay for individual memberships through the club
can result in individuals receiving credit for a portion of
someone else's membership cost when expenses are allocated
at the end of the year. Also, some members might pay for
their memberships via another club or might choose a
different level of membership than the other members.
Processing different membership costs through club
accounting will result in inequities among the various
members when expenses are allocated.
Remember, club expenses are allocated to members (partners)
according to their relative investment in the club, not by
absolute amounts. If all individual memberships are paid
through the club, then a member with a 50% ownership in the
club will receive 50% of the total expense, while a member
owning only 1% will receive only 1% of the total expense.
The best way to handle both club and individual memberships
is to pay for the club membership from the club's funds and
have each member provide a check to cover their own
membership, if the member is not paying for their membership
through another club. All of this can be accomplished at the
time that the club's membership is renewed (using the paper
form that BetterInvesting supplies for this purpose).
ira smilovitz on
Allocating expenses by exception (equal allocation) doesn't address the issue of two members (spouses) sharing a single BI subscription or members who might pay for their BI membership through a different club. William Peterson clearly lays out the reasons why the individual memberships should not be paid via the club.
Betterinvesting memberships for individuals (including
couples) are individual expenses, not club expenses. They
should be paid for by each individual (or couple) outside of
club accounting. Only the membership of the club itself is a
club expense.
Trying to pay for individual memberships through the club
can result in individuals receiving credit for a portion of
someone else's membership cost when expenses are allocated
at the end of the year. Also, some members might pay for
their memberships via another club or might choose a
different level of membership than the other members.
Processing different membership costs through club
accounting will result in inequities among the various
members when expenses are allocated.
Remember, club expenses are allocated to members (partners)
according to their relative investment in the club, not by
absolute amounts. If all individual memberships are paid
through the club, then a member with a 50% ownership in the
club will receive 50% of the total expense, while a member
owning only 1% will receive only 1% of the total expense.
The best way to handle both club and individual memberships
is to pay for the club membership from the club's funds and
have each member provide a check to cover their own
membership, if the member is not paying for their membership
through another club. All of this can be accomplished at the
time that the club's membership is renewed (using the paper
form that BetterInvesting supplies for this purpose).
William F. Waskosky on
Thank you Willam, Donna and Ira for your responses to my expense question. This is good info to bring to our club members.