Investment Club Software

Investment Club Financial Reports

If you are starting an investment club, there are several steps that your group will want to take in order to be successful and to make sure that you manage your group's investments in a legal manner. One of those steps is to join the NAIC, or the National Association of Investors Corporation. This non-profit organization helps investment clubs by providing them with education, conferences, accounting software, classes and even a monthly magazine with helpful information. Your investment club will also want to incorporate, so that the ownership of your investments is clearly and legally defined. Finally, you will want to have a treasurer, or another member, whose primary responsibility is to keep track of the money and investments, to report this information accurately to the members, and to prepare the necessary tax forms. The best way for your treasurer to do this is to use the right kind of Investment Club Accounting Software.  This was probably the smartest step that our club took.

Investment Profits

You may also want to use this direct link to the investment book section at to purchase books that will help you and get more details on how to get your group started.

Investment Club Financial Reports

At most private investment club meetings, the treasurer will present a printed report to each of the members. This monthly report will list all of the groups's current stock holdings, and detail the investment club's basic financial information. This financial report should include the dates when the stocks were purchased, the amount paid for them, the number of shares held, dividends paid, and the current value of each stock. In addition, members will want to see a monthly balance sheet that will include the club income and expenses including brokerage commissions, money collected from the members, money paid from stock dividends and, of course, the cost of your investment club accounting software. Any other expenses which your group may incur will also be included. In addition, most group members will want to see a monthly valuation showing exactly how much each member's ownership is currently worth. It will be exciting to watch the value of your investments grow … both for the group as a whole, and for each individual member. 

Investment Club Accounting Software

Although an extremely bright, creative treasurer might try to come up with all the necessary data by themselves, it is far smarter and safer to use the appropriate investment club software to create all the necessary reports and chart the investment club's performance. Performance is different from just a balance sheet. A performance report is weighted to show how each stock has performed over time. This is a complex analysis which requires special computer software. For example, a performance report does more than show that a stock has gone up 10%. If it has taken 10 years for that growth to occur, a performance report will show how that stock has performed each year, and how it compares to other stocks in your portfolio.

Investment Club Tax Return Software

Investment clubs are required to file tax returns at the end of the year. Whether your club made money or not, the club will need to file a Form 1065 for the investment partnership. Each individual member also will need to report a proportional part of the club's losses and gains on their personal tax returns. In order to do this, the club treasurer will have to issue a Schedule K-1 to each member. In order to insure accuracy, these tax reports require specific investment club tax software. In fact, this software generally needs to be repurchased every January in order to accurately reflect changes in the tax laws.

Where to Buy Reliable Accounting Software

There are several sources for purchasing the correct accounting software. The group I belonged to had a treasurer who was willing to try a variety of programs until we found one that seemed the easiest for the members to understand, and for our treasurer to use. We eventually purchased all of our software through the National Association of Investors Corporation, and our treasurer took classes from them that helped her learn how to use it. You can contact the NAIC at Each year, of course, she had to update the software, particularly the tax software, and sometimes there was a bit of a learning curve as a result of the changes that had been made.

Although we found the NAIC software to be very reliable, your club may want to try out several different investment club software programs in order to find the one that works best for your club. Among the other programs that we have seen promoted, you may want to check out these websites:,, and I have actually seen the software advertised on the NAIC website. The annual price for the tax programs seems to range from about $60 to $100. Whichever program you decide to use, be sure to find out how much technical support they will provide if your treasurer has difficulty using the program.

Whether you are interested in investment clubs or your personal finances, you may want to read some of these other articles:

Starting an Investment Club

Ethical Investment for the Socially Responsible Investor

How to Find Free Stock Research Websites

How to Use Value Line Stock Research Tools

The Long and the Short of Understanding Investment Tools

Starting a FOREX Investment Club

Use Motley Fool Techniques with Your Investments

The Motley Fool Investment Clubs: How to Start and Run One the Motley Fool Way
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Our group always took the Motley Fool advice into consideration when we made our investments. It wasn't our only approach, but it was certainly an important one.

A Thorough Explanation of How to Get Your Group Started

The Only Investment Guide You'll Ever Need
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One thing you want to be sure to do is make certain that your group has followed all the necessary legal requirements. This will bring everyone peace of mind. It will also keep you organized.