Rip and I receive questions like these over and over again.    It's not surprising.   In the past in some situations it has been difficult, if not impossible, to account for club expenses in a simple and accurate manner.     Not any more!  

 

Several recent enhancements to bivio make handling expenses properly a breeze!    Here's why.    First, when you enter an expense transaction you will now be asked to categorize that expense as either deductible or non deductible.   If you're not sure which category your expense falls under, the best official source of information to make that determination is 

 

Secondly, bivio gives your treasurer the opportunity to select how you would like to have that expense allocated between the members of your club.   A treasurer may select to allocate the expenses either in proportion to each members ownership in the club or equally between the members.   As always, this selection should be made in accordance with your club's operating rules as defined in your club's Partnership Agreement and Bylaws.   

 

Let's look at an example of why a club might like to select one method of allocation verses the other.  

 

Let's say that your 10 member club joins an organization that charges a membership fee of $15 per person.   Each person will benefit from that membership equally.  Therefore, when your treasurer enters the $150 expense into bivio he/she might wish to select "Allocate Equally Between Members".    On the other hand, let's say your club purchased bond insurance to protect the assets of the club.   In this case, the benefit to each respective member is more directly aligned with each members ownership in the club.   In this situation the club may wish to leave the allocation proportional to each members ownership in the club rather than allocating the expense equally.    

 

 

Jerry Dressel
St.Louis, Missouri
Trez_Talk@bivio.com