ICLUB Insider |
November 2, 2004 |
THE LATEST NEWS ON
NAIC SOFTWARE BUILT BY ICLUBCENTRAL INC.
Summary
With the latest version of NAIC Online Club Accounting
(NOCA), we have made many changes and improvements designed
to alleviate common accounting problems. Here are a few of
the most notable features:
- If there are any data file errors when importing data
from NAIC Club Accounting version 1 (NCA 1), NCA 2, or
older versions of NOCA, NOCA automatically corrects the
data upon import, or the data file errors are clearly
identified to the end user with guidelines on how to
correct the problem.
- We've improved the way that the software handles
transactions, valuations, or distributions that are
entered on the same date.
- NOCA makes use of two-step withdrawals, which is a
more rational way to treat member withdrawals.
- The option for the merger/spin-off return to be based
on tax basis rather than market value from "action"
date is now included. You can find this option under
Accounting > Utilities > Update Club Settings.
- Total Return has been removed in favor of the more
meaningful Compound Annual Return (CAR) calculation.
- There is an option for CAR calculation on repurchased
securities to not include earlier ownership of the same
security. Go to Accounting > Utilities > Update Club
Settings to select the method that you prefer to use.
- Cases where rounding errors could potentially occur
have been corrected.
- The return on capital treatment has been improved.
Also note that as a result of these fixes, a few errors in
previous entries entered in your books may come to light. If
you see a stock or member reappear in your records with a
small fraction of shares owned, delete the original
transaction and re-enter it. This will take care of the
discrepancy.
Loyal NOCA users and NOCA newcomers will undoubtedly find
that these improvements make club accounting much easier and
much more intuitive. All of us at ICLUBcentral sincerely
thank current users for choosing NAIC Online Club
Accounting.
If your club is not already using NOCA, then we invite you
to start using it. Or sign up today for a free 60-day NOCA
trial, with no strings attached.
For more information about NAIC Online Club Accounting, please visit:
http://www.naic-club.com/.
It won't be long before club treasurers will turn their
attention to filing their club's federal (and state, if
required) tax forms. Here's a checklist of items to remember
so that you can be well-prepared when it comes time to file.
As soon as 2005 rolls around, you should be on the lookout
in the mail for the year-end statements and Form 1099s that
all of your financial institutions must send you, reporting
interest, dividends and other income paid to you throughout
the year. Also remember that dividends that are reinvested
are still reported as income.
Form 1099s should arrive by the end of January; make sure to
keep them in a safe place so that you'll have them available
when you begin preparing your tax filings. Some institutions
now make these forms available electronically on their web
site, either instead or in addition to mailed copies. Note
that institutions are not required to send you a 1099-DIV or
1099-INT for amounts below $10 (though many do), so you may
not necessarily receive 1099s for all of your accounts. You
are still required to report these amounts to the IRS,
however; your year-end account statement will generally
include a complete summary of all of these income items.
Once these forms arrive, you can check the amounts shown on
the forms to the totals entered in your NAIC Club Accounting
software. If you spot any discrepancies, use your monthly
and year-end statements to find the reasons for the
differences. Usually, this kind of problem is due to a
transaction that was mis-entered or not entered at all in
your club's books. Last year, a record number of brokerage
firms and financial institutions had to issue revised Form
1099s because of the changes to the tax code (primarily due
to the establishment of qualifying dividends that were
subject to a lower tax rate). This year, financial
institutions have had plenty of time to make sure that
they're reporting dividends correctly, but there's always
the chance that a problem is with your broker's tax
documents and not with the club accounting software or your
recordkeeping.
Also, don't let the 2004 tax season sneak up on you without
first making sure you have renewed your NAIC Club Accounting
Support contract. Remember the last year's significant tax
law changes? While those aren't likely to be a problem this
year, it's a good idea to have Support in your corner
anyway. Don't be caught off guard! Stay prepared -- and
renew today!
Whether or not tax law changes, our research shows that a
majority of clubs use Support over the course of their
Support subscription, especially during tax season. At some
point during the upcoming tax season you will probably have
a question or two that our expert Support team can easily
help you with. Remember that your Support contract covers
full access to our Support team, including access to our
online support pages, personalized email support, and
telephone support just a call away. Also remember that the
only way to receive software updates and stock quote
downloads is by having a valid Support contract.
To renew your Club Accounting Support, please visit: http://www.iclub.com/store/support.aspx.
With the introduction of NAIC Stock Analyst 3 (NSA) last year,
Stock Analyst Plus (also known as STB Stock Analyst Plus)
was superseded by a powerful new version of the program.
Completely rewritten from the ground up, NAIC Stock Analyst
provides most of the same advanced investing techniques
included in Stock Analyst Plus, as well as interoperability
with NAIC's Online Premium Services and powerful portfolio
management reports.
As a result, the time has come to retire Stock Analyst Plus
to greener pastures. As of December 31, 2004, Stock Analyst
Plus will no longer be supported by ICLUBcentral Inc. After
this date, our support staff will no longer be able to help
you with any questions or problems you may experience with
Stock Analyst Plus. (You may choose to continue using Stock
Analyst Plus, of course, but keep in mind that we will be
unable to assist you with any issues regarding the software
after December 31, 2004.)
We urge all users of Stock Analyst Plus to upgrade to NAIC
Stock Analyst to take advantage of the new features that are
part of that program, including the new annual report
spreadsheet, customizable logarithmic trend graph with 26
metrics to choose from and direct connection to NAIC's
Onlline Premium Services for downloads and updates of SSG
data.
To upgrade to NAIC Stock Analyst 3, or to download a demo to test out the awesome power of NSA 3, please visit: http://www.iclub.com/nsa/.
Don't be caught off guard this tax season by the significant
changes that the IRS has made to the Schedule K-1. The Form
1041 (Schedule K-1) Partner's Share of Income,
Deductions, Credits, etc. (or simply, the "K-1") must be
submitted for each individual member of an investment club.
The entire format of the K-1 is different this year -- the
names, numbers, and layout of various sections have all
changed.
We just wanted to make you aware of this fact, and also
remind you that the NAIC Club Tax Printers are coming soon.
The 2004 NAIC Club Tax Printer (Federal tax software for
your desktop NAIC Club Accounting software) will include
everything you need to fill out the new K-1's for each
member along with the Form 1065 (including Schedule D and
supporting schedules) for your club. Look for an ICLUB
Insider newsletter announcement in the near future telling
you when, where, and how you can purchase the NAIC Club Tax
Printers. Don't forget that we also have the NAIC Club
State Tax Printer for a select number of states, as well as
the NAIC Online Tax Printer to print your federal tax forms
(also including the new K-1's) if your club uses NAIC Online
Club Accounting rather than the desktop software.
So to get ready for the 2004 tax season, keep an eye out for
the NAIC Tax Printers! Don't forget that there are
significant discounts to be had for NAIC members who
purchase before January 1, 2005.
Look for our Tax Printer
ad in the December issue of Better Investing magazine, and
watch for an announcement of product availability at: http://www.iclub.com/taxes/.
For absolute beginners, NAIC Take Stock is, without a doubt,
the easiest way to become indoctrinated into NAIC's
investment methods. With just a few simple clicks of the
mouse, NAIC Take Stock retrieves company data from the
Internet and carries out a powerful series of computerized
calculations to determine if a stock is a reasonable
candidate for your portfolio -- or if you should run (as
quickly as possible) in the opposite direction!
But NAIC Take Stock isn't just a tool for investing
neophytes. I recently heard from an investment club that has
found a way to incorporate NAIC Take Stock's logic into
every stock considered by its members, and I thought that
I'd share their process with other investment clubs in this
issue of the ICLUB Insider.
As is common with most investment clubs, the members of this
club present stocks on a regular basis for consideration to
be added to the club's portfolio. Most of the members use
SSG software to develop projections for the company's future
growth and to determine if the stock is selling at a
reasonable current price. At each meeting, SSGs are passed
around the table, and members discuss the attributes and
potential of each company. Stocks that meet the basic
criteria established by the club (the same standards
recommended by NAIC) are only then considered for purchase
by the club.
However, this club applies another test to all SSGs created
by club members. Each stock is then reviewed by one of its
members who owns a copy of NAIC Take Stock, and the
resulting SSG is compared to the SSG created by the club
member. In a matter of moments, the club has an instant
comparison by which they can compare the judgment of the
member to the judgment of NAIC Take Stock. If NAIC Take
Stock agrees with the member's judgment, then the company is
deemed to have passed the litmus test of being a quality
stock. If the results of the SSG generated by NAIC Take
Stock are wildly divergent from the member's analysis, then
the stock is sent back down the minor leagues (if this
baseball metaphor seems way off base, so to speak, then just
think of this as sending the stock back to the member for
further review).
This doesn't mean that the club necessarily used NAIC Take
Stock to make their investment decisions for them. The
technology of NAIC Take Stock has merely provided another
tool to aid in the stock selection process. They still
review companies, do intensive research and thoroughly
investigate every possible opportunity. But NAIC Take Stock
helps the club to identify problems that may have been less
obvious, or to flag overly-optimistic user expectations of
future growth.
This technique is simple enough to be used by every club
when examining a stock, serving as a double-check of member
SSGs (particularly for clubs with new members who aren't
fully up to speed on the SSG) and as a catalyst for
discussion about what makes a high-quality growth stock that
will be a worthy addition to the club's portfolio.
At just $99 (for NAIC members), perhaps you should think of
NAIC Take Stock as a bit of insurance that your club is
using NAIC's tools appropriately. If NAIC Take Stock helps
your club to avoid buying just one stock that isn't likely
to live up to your expectations, won't that be $99 well
spent?
For more information on NAIC Take Stock, or to download a demo, please visit:
http://www.iclub.com/takestock/.
Read past newsletters, subscribe, or unsubscribe at:
http://www.iclub.com/newsletters/
Copyright 2004 ICLUBcentral Inc. All rights reserved.
|