RECORD KEEPING Original Power Point created by Kenneth

RECORD KEEPING Original Power. Point created by Kenneth Moseley Modified by Georgia Agricultural Education Curriculum Office July, 2002

OBJECTIVES n n Understand why a manager needs records. Know the steps in setting up a record system. n n Know the information that needs to be recorded and the types of records needed for the different levels of record keeping. Understand how to make management decisions based upon records.

Why A Manager Needs Records n n Without record keeping, the chances of managing a successful business are poor. You must know where you are at before you can plan where you want to be in the future.

Why Keep Records n n To comply with income tax reporting requirements. To assist in planning and management such as obtaining credit, participating in government programs, and deciding what to produce.

What Kind Of Records Do I Need n n Cash flow summary Net worth statement Income statement Detailed enterprise analysis

What Are The Usefulness Of Records n n n Records allow you to compare past performance with present performance and future goals. They can provide a “peek” into the future. Records are used to assist in obtaining credit.

What Steps Are Needed To Set Up A Record System n n Select a record keeping system suited to their particular needs. Select an accounting system suited to their business situation. Select a method of reporting farm income and expenses. Develop a procedure to get exactly the information needed from the records.

Select A Record Keeping System Suited To Their Particular Needs n n n Income Tax purposes only Income taxes plus some business analysis A complete farm or ranch business analysis.

Select An Accounting System Suited To Their Business Situation n Double entry n Single entry

Select A Method Of Reporting Farm Income And Expenses n Cash Method n Accrual Method

Develop A Procedure To Get Exactly The Information Needed From The Records n n n Enter the beginning of the year inventories in the inventory. Set up depreciation schedules. Discuss the method of valuation. Enter receipts, expenses, and production in the appropriate records. Use a Schedule F in setting up this part of the record keeping. Enter the end of the year inventories into the inventory. Complete the farm or ranch analysis.

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