Treasurer's Fee

Elaine Agee on

Our club monthly fee per member is $50. Prior to our
converting to Bivio the fee equaled one share.

Now that we are convering to Bivio and will be using the
unit accounting system, how can we manage this process
within the system to provide this benefit to our treasurer?

Thanks for your help.

Laurie Frederiksen on

Hi Elaine,

Are you compensating your treasurer $50 per member in cash per month? This would be entered as a
club expense. If your partnership agreement allows it, you would allocate $50 of expense to each
member. If you need extra cash to actually give to the treasurer, enter any contributions by your
members as member payments.

If, instead, you'd like to compensate your treasurer with one unit per member per month you could
use a suspense account to pay the expense from and then record a member payment for the treasurer
into that account each month to receive the units.

Units will vary in value each day based on the variation in value of your club assets.

Laurie Frederiksen
bivio Inc.

Elaine Agee on

Actually we want to give her the equalivant of $50 each
month for her efforts. Would the suspense account work
best?

Thanks for your time.

Elaine

Laurie Frederiksen wrote:
> Hi Elaine,
>
> Are you compensating your treasurer $50 per member in cash per month? This would be entered as a
> club expense. If your partnership agreement allows it, you would allocate $50 of expense to each
> member. If you need extra cash to actually give to the treasurer, enter any contributions by your
> members as member payments.
>
> If, instead, you'd like to compensate your treasurer with one unit per member per month you could
> use a suspense account to pay the expense from and then record a member payment for the treasurer
> into that account each month to receive the units.
>
> Units will vary in value each day based on the variation in value of your club assets.
>
> Laurie Frederiksen
> bivio Inc.

iras1 on

I'm not sure why you want to do this when there is virtually no effort required to be treasurer. That said, you will have some additional obstacles to deal with. The payments to the treasurer must be recorded as "Guaranteed Payments" on the club's 1065 and the treasurer's K-1 and reported by her as income on her personal tax return, possibly subject to self-employment tax. I don't think that bivio's tax module can handle this directly, but I'll defer to their support staff for a definitive answer.

Should you still want to do this, the procedure would be to manually enter an expense of $50 for bookkeeping services (deductible expense) and a $50 deposit from the treasurer, purchasing new units. Use the suspense account for both transactions.

Ira Smilovitz

In a message dated 08/01/09 09:33:44 Eastern Daylight Time, egagee@bivio.com writes:

Actually we want to give her the equalivant of $50 each
month for her efforts. Would the suspense account work
best?

Thanks for your time.

Elaine

Laurie Frederiksen wrote:
> Hi Elaine,
>
> Are you compensating your treasurer $50 per member in cash per month? This would be entered as a
> club expense. If your partnership agreement allows it, you would allocate $50 of expense to each
> member. If you need extra cash to actually give to the treasurer, enter any contributions by your
> members as member payments.
>
> If, instead, you'd like to compensate your treasurer with one unit per member per month you could
> use a suspense account to pay the expense from and then record a member payment for the treasurer
> into that account each month to receive the units.
>
> Units will vary in value each day based on the variation in value of your club assets.
>
> Laurie Frederiksen
> bivio Inc.

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