HWSW automates everything a treasurer dreads: unit pricing, fair gain splits, §704(c) allocations, and Schedule K-1 filing — with zero spreadsheet formulas required.
44hrs
avg treasurer time lost to admin per year
1 in 3
club spreadsheets contain K-1 errors
$0
cost to get started on HWSW
Percentages drift every time someone joins, leaves, or contributes more. Units stay fixed and fair. Here's the difference — live.
Spreadsheet method
Percentage-based — breaks every time someone joins
| Member | Contrib. | % Share | NAV |
|---|---|---|---|
| Alex M. | $42,000 | 35.0% | $52,430 |
| Brianna K. | $28,000 | 23.3% | $34,953 |
| Carlos R. | $21,000 | 17.5% | $26,215 |
| Dana W. | $15,000 | ??? | ??? |
| Ethan S. | $9,000 | ??? | ??? |
Problem: Dana and Ethan joined mid-year when the portfolio had already appreciated. A simple % split would give them a slice of gains they never earned. You'd need to recalculate every member's % manually — and update every downstream formula.
HWSW unitisation
Units priced at NAV-per-unit on join date — always fair
| Member | Join date | Units held | Unit price | Current NAV | % of fund |
|---|---|---|---|---|---|
| Alex M. | Jan 2022 | 4,200 | $12.48 | $52,416 | 35.0% |
| Brianna K. | Mar 2022 | 2,800 | $12.48 | $34,944 | 23.3% |
| Carlos R. | Sep 2022 | 2,100 | $12.48 | $26,208 | 17.5% |
| Dana W. | Jan 2023 | 1,500 | $12.48 | $18,720 | 12.5% |
| Ethan S. | Jul 2023 | 900 | $12.48 | $11,232 | 7.5% |
| Fiona L. | Feb 2024 | 500 | $12.48 | $6,240 | 4.2% |
| Total | 12,000 | — | $149,760 | 100% | |
How it works: When Dana joins in Jan 2023, HWSW prices the fund at $10.00/unit. She buys 1,500 units with her $15,000 contribution. When the unit price rises to $12.48, she profits only on her units. Pre-existing gains belong to earlier members. No formulas. No manual recalculation.
Unit price over time — 6 members, 3 years
Jan '22
$10.00
Jun '22
$10.82
Jan '23
$11.10
Jul '23
$11.65
Jan '24
$11.90
Feb '24
$12.05
Jun '26
$12.48
Each new member buys in at the current unit price. Earlier members benefit from the full appreciation since day one. Later members benefit only from appreciation after their join date. Perfectly fair — automatically.
When your club sells a stock, the realized gain is split across members based on the units they held during the appreciation period — not just who's in the club today.
Trade: Sell 100 shares of AAPL
Purchased Feb 2022 · Sold June 2026 · Realized gain: $8,640
Cost basis
$16,760
Proceeds
$25,400
Spreadsheet: equal split by current %
| Member | Current % | Gain allocated | Problem |
|---|---|---|---|
| Alex M. | 35.0% | $3,024 | |
| Brianna K. | 23.3% | $2,013 | |
| Carlos R. | 17.5% | $1,512 | |
| Dana W. | 12.5% | $1,080 | ⚠ Not invested when AAPL was bought |
| Ethan S. | 7.5% | $648 | ⚠ Not invested when AAPL was bought |
| Fiona L. | 4.2% | $363 | ⚠ Not invested when AAPL was bought |
Dana, Ethan, and Fiona joined after AAPL was purchased. Allocating gain to them based on current % violates §704(b) substantiality and could trigger IRS scrutiny.
HWSW: §704(c) Traditional Method
| Member | Units during hold | Gain allocated | Status |
|---|---|---|---|
| Alex M. | 4,200 | $3,826 | Full period |
| Brianna K. | 2,800 | $2,550 | Full period |
| Carlos R. | 2,100 | $1,915 | Partial |
| Dana W. | 0 | $349 | Post-join only |
| Ethan S. | 0 | $0 | Excluded |
| Fiona L. | 0 | $0 | Excluded |
HWSW tracks each member's unit-weighted ownership across the entire hold period. Built-in gains are allocated to the members who were invested when they accrued. IRS §704(c) compliant. No formula needed.
New member scenario — built-in gain protection
Fund is valued
On Dana's join date (Jan 2023), HWSW calculates the current NAV per unit: $11.10. The portfolio's unrealized gains total $24,800 at this point.
Built-in gain tracked
The $24,800 built-in gain is tagged as belonging to Alex, Brianna, and Carlos — the members who held units during the appreciation. This is the §704(c) built-in gain ledger.
Dana buys in fairly
Dana contributes $15,000 and receives 1,500 units at $10.00/unit. Her cost basis reflects the fund NAV on her join date. When those gains eventually realize, they flow to the right members.
HWSW generates complete Schedule K-1 data for every member — including the STCG / LTCG split, capital account movement, and outside basis ledger. No CPA needed for the number-crunching.
What a typical investment club spreadsheet looks like to the IRS
3 critical errors foundHWSW: real-time K-1 dashboard — generated automatically
Schedule K-1
Alex M.
Partner's share of profit / loss
35.0%
Short-term capital gain (Box 8)
$2,100
Long-term capital gain (Box 9a)
$5,800
Capital account — beginning
$46,620
Capital account — ending
$52,416
Outside basis (§705)
$42,000
Schedule K-1
Brianna K.
Partner's share of profit / loss
23.3%
Short-term capital gain (Box 8)
$1,400
Long-term capital gain (Box 9a)
$3,870
Capital account — beginning
$31,080
Capital account — ending
$34,944
Outside basis (§705)
$28,000
Schedule K-1
Carlos R.
Partner's share of profit / loss
17.5%
Short-term capital gain (Box 8)
$890
Long-term capital gain (Box 9a)
$2,900
Capital account — beginning
$23,310
Capital account — ending
$26,208
Outside basis (§705)
$21,000
IRS e-filing ready
Export a complete, IRS-validated MeF XML package containing Form 1065 and all K-1s. Submit directly to the IRS through any authorized e-file provider. The §704(c) Traditional Method allocations are pre-calculated and embedded.
§705 Outside basis ledger
HWSW maintains each partner's outside basis automatically — updated on every contribution, distribution, and gain/loss allocation. Supports §754 step-up elections and basis adjustments on partner transfers.
Every task below is either fully automated by HWSW or reduced to a single review step. This is what treasurer life looks like without the spreadsheet.
42.5h
hours saved per year per treasurer
0
K-1 calculation errors (automated)
1-click
MeF XML export for IRS e-filing
No more emailing spreadsheet attachments before tax season. Every member logs in and sees their live position, gain history, and K-1 data — anytime.
Member statement
Alex M.
Units held
4,200
35.0% of fund
Current value
$52,416
+$14,916 vs cost
Total realized gain
$7,726
STCG $1,926 · LTCG $5,800
Outside basis
$42,000
Original contribution
Recent allocations
AAPL sale — gain allocation
Jun 2026
MSFT dividend — allocated
Apr 2026
Member contribution
Mar 2026
Before HWSW, this is what treasurer season looked like for a 6-member US club:
Manually extract each member's unit count from the master sheet
Email 6 individual spreadsheet tabs and hope nobody edits theirs
Manually classify every gain as STCG or LTCG using trade dates
Build K-1 exhibits in Excel and copy into TurboTax Business manually
One formula error cascades into 6 incorrect K-1s
Repeat from scratch every April when a new member joined mid-year
Every member logs in and sees their live statement in real time
STCG / LTCG split calculated automatically from trade dates and hold periods
K-1 data ready by January 31 — no manual work
New member mid-year? Units priced at NAV on join date — allocation adjusts automatically
Join investment clubs already using HWSW to replace their spreadsheets, stay IRS-compliant, and give every member a statement they can actually read.
No credit card required · US & UK investment clubs · §704(c) compliant