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Accounting methods for equity portfolios

Discussion in 'Property Finance' started by Mgs4, 13th Jul, 2015.

  1. Mgs4

    Mgs4 Member

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    Sydney
    An accounting query on equity portfolios. Many brokers don't provide detailed data on historical p/l, eg FY15 p/l, which is needed for tax purposes. Instead many brokers provide a summary of historical trades or contract notes which includes stock, quantity, buy/sell, consideration, brokerage etc. Many accountants have accounting software that allows excel summaries of such data to be processed through which calculates realised p/l. Does anyone know if this type of software is available to the general public of available cheaply?

    Appreciate all assistance.
     
  2. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

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    There is no known software I am aware of that routinely accepts all forms of data dumped into excel. The source CSV data is the problem. Each broker format varies...And changes. Nor would I have any interest in importing what is black and white on paper. In the world of tax most accountants seek simple reports that clearly indicate trades, divs, etc... Depending whether the trades are on CGT or revenue account would determine the approach. ie CGT I don't care about market values, revenue account I may. Most important is being able to identify historical cost per trade / parcel. If I can enter numbers in bulk I will - eg CGT entered as three items discounted, non-discounted and losses rather than entering 30 trades.

    Most software also doesn't optimise CGT outcomes.

    For clients who trade a bit across many years and who don't have a single broker with reliable records I do have a piece of software I use. Its called Shareman. From a company called Trimar. It does do some CSV imports etc It can revalue based on download etc. It can merge into BGL / Class for SMSFs too. Its crude to look at and not pretty but does everything you can think of. Very good for those wealthy clients with a portfolio of 20+ shares they trade occasionally and have trust, div and other income. It works with all the exceptions / problem areas like tax deferred distributions, return of capital, DRP cost base and reconstructions / consolidations.

    Not cheap though.
     
  3. Mgs4

    Mgs4 Member

    Joined:
    11th Jul, 2015
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    Location:
    Sydney
    Any CSV or excel data can easily be adjusted. You just take an initial spreadsheet with maximum data and then filter as needed. The simplest interpretation is just using quantity, price, buy/sell and transaction costs (brokerage) to work out fy realised p/l. Quantity is important because sometimes you might buy 10k and only sell 5k, hence you want to work out per unit p/l on the 5k sold.

    Your right there may need to be some adjustments required to the excel for corporate actions, but that shouldn't be too hard. Can any other accountants reference what software they use and best methods for private investors to work this out?