 |
|||||
 |
 |
 |
 |
 |
 |
Recording and tracking your costs
Let's face it: Many people, including many farmers, don't keep very good financial records. But tracking financial data is just as important as tracking cropping data. The silver lining in all the paperwork required of certified organic farmers is that it will not only make you a better farmer, it will make you a better businessperson, too.
If you've been in business for a while, some of this information will be familiar. If you're not the most meticulous recordkeeper, now is the perfect time to make improvements. And even if you are, I'm sure you'll find some nuggets of wisdom in this tutorial to make you a better one (and improve your bottom line).
You may already be saving and organizing a lot of the information you need to keep good records and develop useful cost information. Do you:
• Have a bank account for your farm?
• Keep farm accounts separate from family accounts?
• Keep receipts from purchases and store them in one place?
• Write sales invoices and keep them in one place?
• Enter sales and purchases into a ledger (on paper or on the computer)?
• Inventory supplies and equipment at least once every two years?
• Inventory your products and/or livestock at least once a year?
If you answered "yes" to one or more of these questions, you have the beginnings of a good recordkeeping system. Our goal here is to help you tap into your existing records—even if they're very simple—to determine product costs. Along the way, you may pick up some tips for further improvement. A few minor adjustments can help make your cost calculations and business planning more manageable and effective.
|
Computer or Paper?
This is a personal choice and depends on what works best for you. If you're taking this course, chances are good you either own a computer or have some familiarity with them. The key is to make the most of whichever recordkeeping medium you choose.
|
