Ledgers

From Timetotrade

The Capital Gains Tax and Performance Reporting tools centre around the PORTFOLIO tab, with your "ACCOUNT Ledgers" forming the back-bone of, and underpinning the timetotrade accounting system.

You can access your ACCOUNT Ledgers via the drop down menu from the PORTFOLIO tab: PORTFOLIO > ACCOUNTS > MY LEDGER, as illustrated in the following screen shot.

Your ACCOUNT Ledgers are used to capture all cash and investment transactions, which in turn enable taxation and performance reporting to be calculated in timetotrade.

In order to accuarately calculate your Capital Gains Tax and/or determine you true investment performance, we recommend that you set up your Account ledgers to replicate all of your broker and investment savings accounts.

If you have cash and investments in different accounts, such as a personal or joint bank account, or stock broker account or an ISA or SIPP, then you should create a ledger for each of these as illustrated in the following screen shot example:

In order to accurately generate Performance and Capital Gains Tax reports, you will need to input ALL your historic income, expenditure and investment transactions into your Account ledger(s). The reason you need to input all historic transactions is due to the complex HMRC Share Identification and Share Pooling rules. Failure to input all transactions could result in shares being matched incorrectly and in turn Capital Gains being calculated incorrectly.

The very first time you click on the ACCOUNTS tab you will be presented with a default 'main' ledger called "My Ledger (main)" as shown in the following screen-shot for an individual user:

You can change the name and the base currency associated with this default ledger by clicking the 'add/edit' button.

If you have multiple accounts, such as a bank account plus trading accounts with different brokers, you can create additional ledgers to reflect this; for more information see the How do I add additional ledgers section.

You can also set up multiple ledgers in different currencies - useful if you invest in overseas equities or have overseas bank or broker accounts. The system default 'main' ledger is set to British Pounds, but this can be changed to a range of Foreign Currencies. Whichever currency the default 'main' ledger is set to defines the base currency that your overall portfolio is valued against.

If you have transactions in multiple currencies, the current exchange rate will be used to value the overseas ledgers against the default 'main' ledger currency. In the above example, the 'main' account is in GBP, and so GBP is the base currency when valuing the entire portfolio.

You can also create simulated trading ledgers, which can be used to test alternative investment strategies. To view or edit simulated ledgers click on the 'simulated' tab as illustrated in the following screen shot:

Once you have set up your ledgers you then need to input your income, expenditure and investment transactions. When you have added all your transactions, you can then generate Performance and Capital Gains Reports.

NB: private investors who wish to use the Unit Valuation System to monitor investment performance) - to include a ledger's assets within the unit value calculations ensure that the 'uvs' box is ticked.

Please note that if using the Unit Valuation System to monitor investment performance, cash deposits should be entered via the 'uvs' tab and will be credited to the default 'main' ledger.

Associated with each ledger are a set of income/expenditure and investments tabs. To view the income/expenditure and investments tabs for a selected ledger, either click on the Ledger name or use the navigation drop down menus as illustrated in the following screen shot:

By entering income, expenditure and investment transactions you will be able to generate a range of reports.

income/expenditure – provides a consolidated view of all account transactions associated with a ledger between the selected start and end date. This includes: investment transactions, sundry income and expenditures etc

investments – provides a detailed view of historical investment transaction between user define start and end dates, plus a view of the open positions based on the user defined end date.

To navigate between the income/expenditure or investments tabs within a particular ledger, click on the income/expenditure or investments tabs as illustrated in the following screen shot:

To accurately track performance and capital gains, the ledgers should replicate all financial transactions at any point in time.

Stock broker transaction and performance reports do not include all the costs associated with trading, such as trading software, subscriptions to fundamental data, analyst reports etc. The timetotrade accounting features enable you to accurately manage your investment accounts and determine your real performance over time, using professional performance metrics such as Internal Rate of Return.

When working with Ledger accounts it is important to pay attention to the selected 'start date' and 'end date', as these dates define the accounting transactions that are displayed. For example if you entered an accounting transaction on say, the 1st of December 05, if the date range is set to a 'start date' of the 1st of January 06, and the 'end date' is set to a date of the 31st of March 06, then the transaction that you entered for the 1st of December 05 will not be displayed. To view the 1st of December 05 transaction that you have entered, change the 'start date' to a date that occurred before the 1st of December 05, such as the 1st of November 05.

So to summarise, to start using the timetotrade accounting, taxation and performance reporting features:

Step 1: Set up your Main Ledger.

Step 2: Add Additional Ledgers as required

Step 3: Import or Manually Input your investment transactions and income / expenditure into the associated Ledger.

next >>

[edit]



timetotrade Ledgers From Timetotrade Jump to: navigation, search The Capital Gains Tax and Performance Reporting tools centre around the PORTFOLIO tab, with your "ACCOUNT Ledgers" forming the back-bone of, and underpinning the timetotrade accounting system. You can access your ACCOUNT Ledgers via the drop down menu from the PORTFOLIO tab: PORTFOLIO > ACCOUNTS > MY LEDGER, as illustrated in the following screen shot. Your ACCOUNT Ledgers are used to capture all cash and investment transactions, which in turn enable taxation and performance reporting to be calculated in timetotrade. In order to accuarately calculate your Capital Gains Tax and/or determine you true investment performance, we recommend that you set up your Account ledgers to replicate all of your broker and investment savings accounts. If you have cash and investments in different accounts, such as a personal or joint bank account, or stock broker account or an ISA or SIPP, then you should create a ledger for each of these as illustrated in the following screen shot example: In order to accurately generate Performance and Capital Gains Tax reports, you will need to input ALL your historic income, expenditure and investment transactions into your Account ledger(s). The reason you need to input all historic transactions is due to the complex HMRC Share Identification and Share Pooling rules. Failure to input all transactions could result in shares being matched incorrectly and in turn Capital Gains being calculated incorrectly. The very first time you click on the ACCOUNTS tab you will be presented with a default 'main' ledger called "My Ledger (main)" as shown in the following screen-shot for an individual user: You can change the name and the base currency associated with this default ledger by clicking the 'add/edit' button. If you have multiple accounts, such as a bank account plus trading accounts with different brokers, you can create additional ledgers to reflect this; for more information see the How do I add additional ledgers section. You can also set up multiple ledgers in different currencies - useful if you invest in overseas equities or have overseas bank or broker accounts. The system default 'main' ledger is set to British Pounds, but this can be changed to a range of Foreign Currencies. Whichever currency the default 'main' ledger is set to defines the base currency that your overall portfolio is valued against. If you have transactions in multiple currencies, the current exchange rate will be used to value the overseas ledgers against the default 'main' ledger currency. In the above example, the 'main' account is in GBP, and so GBP is the base currency when valuing the entire portfolio. You can also create simulated trading ledgers, which can be used to test alternative investment strategies. To view or edit simulated ledgers click on the 'simulated' tab as illustrated in the following screen shot: Once you have set up your ledgers you then need to input your income, expenditure and investment transactions. When you have added all your transactions, you can then generate Performance and Capital Gains Reports. NB: private investors who wish to use the Unit Valuation System to monitor investment performance) - to include a ledger's assets within the unit value calculations ensure that the 'uvs' box is ticked. Please note that if using the Unit Valuation System to monitor investment performance, cash deposits should be entered via the 'uvs' tab and will be credited to the default 'main' ledger. Associated with each ledger are a set of income/expenditure and investments tabs. To view the income/expenditure and investments tabs for a selected ledger, either click on the Ledger name or use the navigation drop down menus as illustrated in the following screen shot: By entering income, expenditure and investment transactions you will be able to generate a range of reports. income/expenditure – provides a consolidated view of all account transactions associated with a ledger between the selected start and end date. This includes: investment transactions, sundry income and expenditures etc investments – provides a detailed view of historical investment transaction between user define start and end dates, plus a view of the open positions based on the user defined end date. To navigate between the income/expenditure or investments tabs within a particular ledger, click on the income/expenditure or investments tabs as illustrated in the following screen shot: To accurately track performance and capital gains, the ledgers should replicate all financial transactions at any point in time. Stock broker transaction and performance reports do not include all the costs associated with trading, such as trading software, subscriptions to fundamental data, analyst reports etc. The timetotrade accounting features enable you to accurately manage your investment accounts and determine your real performance over time, using professional performance metrics such as Internal Rate of Return. When working with Ledger accounts it is important to pay attention to the selected 'start date' and 'end date', as these dates define the accounting transactions that are displayed. For example if you entered an accounting transaction on say, the 1st of December 05, if the date range is set to a 'start date' of the 1st of January 06, and the 'end date' is set to a date of the 31st of March 06, then the transaction that you entered for the 1st of December 05 will not be displayed. To view the 1st of December 05 transaction that you have entered, change the 'start date' to a date that occurred before the 1st of December 05, such as the 1st of November 05. So to summarise, to start using the timetotrade accounting, taxation and performance reporting features: Step 1: Set up your Main Ledger. Step 2: Add Additional Ledgers as required Step 3: Import or Manually Input your investment transactions and income / expenditure into the associated Ledger. next >> [edit] Further Reading Private Investor User Manual table of contents Capital Gains Tax User Manual timetotrade is where private investors and investment clubs manage investment affairs. Consolidate and manage your investments, calculate your Capital Gains and Income tax liabilities, track performance and asset allocation, keep a trading journal, access professional trading tools and create alerts to avoid missed trading opportunities. Click here to create a FREE timetotrade account. Retrieved from "http://www.timetotrade.eu/wiki/index.php/Ledgers" Help index timetotrade Home © 2005-2008 Sensatus (contact us)

Ledgers

From Timetotrade

Further Reading