How can I manage a share trading entity?
There are two methods to managing a share trading entity in Simple Invest 360 at the moment
- Single investment
- Multiple investments
- Create a custom investment account
- Untick "Asset subject to CGT" through chart of accounts
- Process all buys/sells through this custom investment account
In order fully benefit from all of the investment reports available, it may be useful to setup each investment in the entity as "Not subject to CGT". Since the chart of accounts in Simple Invest 360 is global, there needs to be care taken when unticking the "Asset subject to CGT" box as this will apply to all entities that are using this investment account. For example, as you may have other entities or SMSFs on your licence using 77600/BHP.AX, you could create 77600/BHP.AX1 to be used just for this share trader.
Please see below for instructions for the above concepts:
Creating a separate 776 account
- From within the chart of accounts, select Add Account, and from the drop-down menu, and select Investment.
- Select the Investment Type and Security. For the above example, we are selecting Shares in Listed Companies (Australian) as the Investment Type, and the Security is BHP.AX.
- In the Investment Code box, you may add the '1' as seen in the example, or any character you wish to add that differentiates the sub-account code from existing sub-account codes. Once you have completed this, be sure to select Save.
- Within the chart of accounts, the 77600 account, once expanded, will now display the two variations.
Untick the 'Asset Subject to CGT' checkbox
- From within the chart of accounts, select the newly created security.
- From within the Edit Investment Account screen, select More Details>>.
- Locate the Asset subject to CGT checkbox at the bottom of the screen. Make sure the box is unticked. Select Save.
How to calculate opening/closing stock
- Run the Investment Summary report as at 30th of June prior year to calculate opening stock- this report will provide the market values and cost for each asset.
- Run the Investment Summary report as at 30th of June current year to calculate the closing stock. The closing values for market value or cost from this report can be used to calculate the closing stock
- Run the Realised Capital Gains report to calculate the Sales value which is the Proceeds column in this report.
- The Unrealised Capital Gains Detailed report can be used to calculate the purchase values for stock bought in the current year.