Farm and Ranch Records
Why Keep Records?
In today's business world it is crucial to keep good records. Records can be used in making day to day decision, planning for the future, tax management, identifying problems so that proper adjustments can be made, and provides a basis for credit. A successful accounting system will help the manager in evaluating the farm's liquidity, solvency, production and economic efficiency, and profitability. Being a efficient producer is no longer good enough to make it in the farming and ranching business. To be successful in today's business world, a manager must have well organized financial records. Decision making will be easier if a inclusive record keeping system is used properly.
Benefits of Keeping Records
When keeping proper records a manager should be able to determine farm earnings, detect weaknesses in the business, and provide accurate information for income and Social Security tax purposes. Keeping proper records can also help apply good business methods to the operation and furnish a record of important events and transactions for later use.