How do I close my books for the year?

Strictly speaking, "closing the books" is a misnomer. You don't have to put everything on hold while you finish out last year's transactions. You can continue to record next year's transactions while finishing this year's transactions in preparation for filing the partnership tax return.

If you prefer, we also host a webinar each year, on closing the books. Presented by Doug Gerlach, these webinars go over all the steps listed below. For the most up to date video, check the Videos tab in myICLUB, or look for our videos on YouTube at

A few things to keep in mind:

A few warnings and reminders to start:

  • Do not enter ANY transactions on 12/31 (of any year) except the valuation. No deposits, no sales...nothing. If the broker or bank say the transaction is on the 31st, move it to the 30th in the software.
  • If you can't make it on time, you can ask the IRS for an extension. Visit for more information. The partnership return is due on March 15th.
  • Want to know how Club Accounting determines how to fill out the form? Read FAQ 11
  • You will not be able to finish processing the year's transactions until you have all your paperwork. For most clubs, this date will not occur before the end of January. When you have all the statements, balances, and reports for December, here's how to proceed with your year-end tasks.



  1. Verify all members’ addresses, Social Security Numbers (SSNs), and the club's Tax ID (EIN). Check your paperwork against the software.
  2. Correctly identify all mutual funds, REITs, and other securities (Limited and Publicly Traded Partnerships, etc.).
  3. Adjust any reclassified dividends.
    1. For steps on how to do this, please see FAQ 504 at:
      Or, as part of our Closing the books for the year webinar, available on the Videos tab in myICLUB, or our YouTube page at
  4. Double-check the ex-dividend dates for each dividend your club received in the previous year.
    Go to REPORTS > SECURITY DIVIDENDS REPORT. Not sure what an ex-dividend date is or how to find out? Visit FAQ 72 ( for the full explanation. If the ex-dividend is incorrect, you may be paying too much in taxes. Correct the dividend double-clicking on the dividend and correcting the ex-dividend date.
  5. Enter all your club transactions up through 12/31.
  6. Reconcile your Club Accounting records with bank, broker and all dividend reinvestment plan (DRP) statements.
    1. Wait until you have received all 1099’s from companies. This can be as early as mid-January or as late as the end of February, depending on the company.
    2. Display the Transaction Summary Report for full year (REPORTS > TRANSACTION SUMMARY REPORT)
    3. Add Charges Paid by Company, if necessary (ACCOUNTING > SECURITIES > CHARGES PAID BY COMPANY) 
  7. Match the totals reported on Form 1099 received from company against the totals on the Transaction summary. If it does not match, you can correct it now or make a note and set it aside for the audit committee (as described below).
  8. Enter a Valuation for all securities as of 12/31. The software will automatically pull in the correct prices, However, if you are entering the valuation manually, use the closing prices for the last trading day of the year, but always use 12/31 date. (ACCOUNTING > SECURITIES > CREATE NEW VALUATION)
  9. Run Allocation of Income and Expenses utility
    1. Check your allocation settings (ACCOUNTING > UTILITIES > ALLOCATION SETTINGS.
    2. Make sure setting #1 is set to TIME-BASED ALLOCATION
    3. Make sure setting #2 is set to 2006 or earlier. If it is set to 2010, change it to 2006, and click the Submit button.
  10. Print Allocation of Income and Expenses for all members (REPORTS > ALLOCATION OF INCOME AND EXPENSES)
  11. If your club does not already have an audit committee, appoint 3 members to review the books for the year. Give them all the paperwork, access to the software and data, a printout of each report for the year, a few highlighters, and a box of coffee. Their goal is to review the books to their satisfaction and the satisfaction of the club. They should provide a signed document certifying their review to be presented at the next meeting and saved in the club's records.
  12. Run the Federal Tax Printer
    1. Click on the TAXES tab.
    2. For Federal taxes, if you have not already purchased the Tax Printer, select PURCHASE. After you have bought the Tax Printer, that changes to RUN. Click RUN to continue.
    3. Follow the on-screen instructions and complete the tax forms. 
  13. Run the State Tax Printer
    1. Click on the TAXES tab.
    2. For State taxes, if you have not already purchased the Tax Printer, select PURCHASE. After you have bought the Tax Printer, that changes to RUN. Click RUN to continue.
    3. Follow the on-screen instructions and complete the tax forms.
  14. Print two (2) Form 1065’s, one for the IRS, one for the club’s permanent records. Print a third copy for your state, if your state requires it.
  15. Print three (3) copies of Schedule K-1 for each current member and any former member who withdrew during the year.
    1. Attach one (1) Schedule K-1 for each member to Form 1065 for IRS filing
    2. Give one (1) copy of the member's Schedule K-1 to each member or withdrawn member for their personal taxes, along with a copy of their Withdrawal report.
    3. Keep one (1) copy with the club’s copy of the IRS filing in the club’s permanent records
  16. Mail your Form 1065 tax filing to the IRS before March 15, certified mail, return receipt requested. This is a precaution against the IRS claiming that you did not file on time. Non-filing and late-filing penalties are calculated per month and per member. To find out where to send your club's forms, see our FAQ at:
  18. There is no street address - the post office knows where to send it based on the name IRS, the city, and the ZIP + 4. 
  19. Attach the return receipt to the Club’s copy of the IRS filing.