1.what is farm record in sheep and goat. 2.Types of farm rec?
- TamaraLv 47 years agoFavorite Answer
Today’s complex world economy and the rapid pace of the farming industry makes it impossible for producers to manage a farm enterprise the way their parents did 30 years ago. Without a proper understanding of record keeping and its current and future implications, the farm operator will not make it very far in today’s business environment.
The first and most important step in taking control of a farm operation’s financial well-being is to keep good and accurate financial records. Do you know where your business is going? Do you want to avoid jeopardizing your borrowing capacity?
There are three main reasons farm operators should keep good financial records:
1) Income tax reporting
2) Obtaining credit
3) Management tool
A record keeping system should include the following:
- A business checking account to handle business transactions.
- An income ledger by calendar month
- An expense ledger by calendar month
- An inventory ledger for physical counting and valuation
- A depreciation schedule for pro-rating original cost of assets
- A balance sheet to determine net worth.
- An income statement to determine net profit or loss
- A cash flow statement to measure flow of funds
That all depends on what farm you are referring to. It is difficult to generalize the kinds of records that all farms have when each is different and have different enterprises.
That being said, there are certain records that are standard and necessary for every farm. These are:
Accounting/financial records (where income and costs or expenditures are recorded
Market records (for current prices on commodity items like grain, cattle, hogs, etc.)
Sales records (where product was sold, to whom and for how much)