There is a lot to understand when a member wants to withdraw some or all of their funds from your club.   It’s not something a club treasurer needs to deal with very frequently and many questions arise when it comes up.  Over the coming days,  we’ll be discussing some of the information you need to know about withdrawals.

First of all, there’s more to entering a withdrawal than writing a member a check.   bivio is tracking an account for each member and needs to make all the accounting calculations necessary to close out or debit it correctly.  To do this, it will need information from you on the date you are going to pay the withdrawal,  the date you are going to value the member’s account, whether you are going to charge them any fees and whether you are going to pay them with cash or by transferring appreciated stock.

The answers to all these questions must be entered on the Withdrawal form.  It is found by using the Withdrawal button on the Accounting>Members screen.

Prior to entering anything, you need to ensure that your bivio records are accurate and up to date. You should not inform a member of what they will be receiving until you have reconciled your bivio accounts at least through the date of their withdrawal valuation. This means all transactions have been entered, all cash balances and number of shares of stock have been verified and all stock prices have been updated. You should determine what they are owed using the withdrawal form, not the member status report.

This information has also been added to the bivio Library page.    For future reference,  you can find it at www.bivio.com/hn/investment-club-withdrawals-introduction.html